Questions and Answers About Suspended Agreements
What is a “hang-on” agreement, and how does it differ from collective bargaining agreements through TechSverige? Here, we answer common questions about “hang-on” agreements and what the various options might mean for you as an employer.
What is a suspension agreement?
A direct collective agreement is a collective bargaining agreement that you, as an employer, enter into directly with a labor union, rather than being covered by a collective bargaining agreement through membership in an employers’ organization.
An individual agreement essentially entails the same obligations as a collective bargaining agreement negotiated through an employers’ organization. The difference is that, as an employer, you do not have access to the support, resources, and benefits that are included when you sign a collective bargaining agreement through TechSverige.
What is the difference between a provisional agreement and a collective bargaining agreement through TechSverige?
With an individual agreement, you sign a collective bargaining agreement directly with a labor union. This means that you are not affiliated with the employers’ organization and cannot influence the process or take advantage of the benefits and support that come with membership in TechSverige and the Confederation of Swedish Enterprise, including the possibility of strike pay if a labor dispute arises.
As an employer member of TechSverige, you are instead covered by collective bargaining agreements through us as your employer organization. At the same time, you gain access to labor law advice, legal assistance, practical tools, networking opportunities, and the chance to influence issues that are important to the industry.
Are individual agreements more expensive than collective bargaining agreements through TechSverige?
Yes. An individual agreement is often a much more expensive solution than a collective bargaining agreement through membership in TechSverige. One key difference is the cost of transition insurance through TRR. With an individual agreement, the premium is twice as high as for companies with a collective bargaining agreement through an employers’ organization such as TechSverige. There may also be additional administrative fees and high costs for labor law consulting, which may need to be purchased separately from, for example, a law firm.
As an employer member of TechSverige, membership includes several services, including advice on labor law. Member companies also receive preferential discounts on transition insurance.
An example:
A company with a total annual payroll of 50 million kronor pays approximately 400,000 kronor per year in premiums to TRR for transition insurance policies under a supplementary agreement. Under a collective bargaining agreement through TechSverige, the corresponding premium is approximately 200,000 kronor.
In this example, the membership fee for TechSverige is approximately 95,000 kronor per year. Overall, this results in a cost reduction ofapproximately 105,000 kronor per year.
In addition, the company gains access to, among other things, labor law advice, support, and other benefits that come with membership in TechSverige and the Confederation of Swedish Enterprise.
This example is a simplified calculation. The actual cost depends, among other things, on the company's total payroll and current fees and premiums.
Does a provisional agreement involve more administrative work?
A separate agreement may involve additional administrative work and special fees for managing the agreement.
With a collective bargaining agreement through TechSverige, you receive support on employer-related issues and assistance in understanding and managing the obligations that come with the collective bargaining agreement.
What kind of support do I receive through the collective bargaining agreement with TechSverige?
As an employer member of TechSverige, you get more than just a collective bargaining agreement. You receive support and expertise to help you be a reliable and attractive employer.
As a member, you'll enjoy the following benefits, among others:
- Personalized support and labor law advice from experienced labor law experts and negotiators
- legal representation in labor law disputes, both with labor unions and in court
- Attractive discounts on transition insurance
- access to networks and the members' council
- the opportunity to help shape issues that are important to the industry
- training courses in labor law and free webinars
- discount on TechSverige's standard contract
Can I influence collective bargaining agreements if I have a supplementary agreement?
With a non-affiliated agreement, you are not a member of the employers' organization and therefore do not have the same opportunity to influence the development of collective bargaining agreements.
As a member of TechSverige, you become part of the employer side. Through the Member Council and other forums, member companies can contribute their perspectives both before and during the development of collective bargaining agreements.
What are the advantages of collective bargaining agreements through TechSverige compared to side agreements?
With a collective bargaining agreement through TechSverige, you get both the collective bargaining agreement and the security provided by an employers’ organization. This means you’re not on your own when it comes to employer issues, while also becoming part of an organization that represents employers in the tech industry and develops collective bargaining agreements based on companies’ needs.
For many companies, this means lower costs and less administrative work compared to individual contracts.
Can a company with a pending agreement become a member of TechSverige?
Yes. If your company currently has an affiliate agreement, membership in TechSverige may be an option.
Contact us, and we'll help you assess your company's situation and tell you more about what membership and collective bargaining agreements through TechSverige entail.
Does your company have a collective bargaining agreement, or are you considering signing one?
We'll help you find the right solution for your business. Contact us, and we'll tell you more about membership, collective bargaining agreements, and the support you receive as an employer through TechSverige.