Labor Unions -Comparison Between Austria and Sweden

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LABOR UNIONS
Impacts on national economy using the example of Austria and Sweden

University of Applied Sciences JOANNEUM

Applied Economics 2

MIG 10 Alexandra Bachler Daniela Böhmer Andrea Grill Silvia Hackl Simone Höflechner Jeannine Kreutz Martina Kurz Stefanie Mistlberger

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Table of Content
1 2 Introduction ........................................................................................................ 3 Labor Unions ...................................................................................................... 4 2.1 2.2 2.3 3 Austria ........................................................................................................... 4 Sweden ......................................................................................................... 5 Austrian vs. Swedish Labor Unions ............................................................... 7

Education............................................................................................................ 8 3.1 3.2 3.3 Aspects of education ..................................................................................... 8 Austria – Education ..................................................................................... 11 Sweden - Education .................................................................................... 12

4

Short-time work ................................................................................................ 16 4.1 4.2 4.3 4.4 Short-time work – Definition ........................................................................ 16 Short-time work – Economic Approach ....................................................... 16 Austria – Short-time work ............................................................................ 18 Sweden – Short-time work .......................................................................... 21

5

Minimum wages ............................................................................................... 24 5.1 5.2 5.3 Minimum wages and their effects on employment ....................................... 24 Austria – Minimum wages ........................................................................... 28 Sweden – Minimum wages .......................................................................... 30

6 7 8

Conclusion ....................................................................................................... 33 Bibliography ..................................................................................................... 38 Table of figures ................................................ Fehler! Textmarke nicht definiert.

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1 Introduction
„Without labor, nothing prospers“ Sophocles (Greek writer and dramatist)

The labor market is a key element of every economic system. It is where goods and services are produced, where capital is used, where employers and workers interact, where employment is secured and created by businesses, where salaries are paid. A well-functioning and competitive labor market with a well-educated labor force is a necessary prerequisite for the economic success of a country.

Labor Unions play a significant role in representing the interests of employees in times of need such as disciplinary hearings, strikes, appraisals, complaints and negotiations. Unions negotiate with employers or employer’s representatives on the behalf of Union Members for labor contracts. In order to maintain or improve the conditions of employment negotiations about wages, working rules, policies concerning hiring and work place safety, take place. Sweden as well as Austria are well developed countries but their labor unions differ significantly in their organizational structure. As both labor unions have a long and successful history this paper discusses three issues both organizations treated and finally compares the effectiveness of the following implementations: short-time work,...
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