Klarna Reaches Agreement with Workers, Averting Strike

Published 6 months ago

Swedish fintech behemoth, Klarna, has successfully negotiated with its employees, thereby preventing a planned strike, according to a report by TechCrunch. Workers had planned to strike over the absence of a Collective Bargaining Agreement (CBA), a written contract between an employer and a union representing the workers.

Absence of Collective Bargaining Agreement

Nearly 90% of all employees in Sweden are under the terms and conditions of various CBAs. However, Klarna’s workers were a part of the remaining 10% that did not have such coverage, leading to the impending strike.

Negotiations Lead to Agreement

After intense negotiations, Klarna’s CEO and co-founder, Sebastian Siemiatkowski, announced that the company had agreed to join the Banks Employer Organisation by the start of 2024. A further agreement was reached with Finansförbundet, the union, to sign a CBA that includes members of all unions under the central organization, Saco. Saco, the Swedish Confederation of Professional Associations, boasts nearly a million members.

A Balanced Agreement

Siemiatkowski expressed his satisfaction with the agreement, which he believes blends Klarna’s agility with the clarity of the Swedish model. He stressed that the focus during negotiations was to ensure operational freedom, quick decision-making ability, and preservation of Klarna’s unique and successful culture. He expressed confidence that the agreement would be mutually beneficial and strengthen the Swedish model from within.

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