In Sweden, about 90% of employees are subject to collective agreements and 83% in the private sector (2017).   Collective agreements generally contain minimum wage provisions. Sweden does not have legislation on minimum wages or legislation extending collective agreements to disorganised employers. Unseated employers can sign replacement agreements directly with unions, but many do not. The Swedish model of self-regulation applies only to jobs and workers covered by collective agreements.  One area in which unions and employers are currently in conflict is that wage increases are mandatory bargaining partners. In Acme Die Casting v. NLRB, 26 F.3d 162 (D.C. Cir. 1994), the Court of Appeal analyzed the employer`s historical practice of determining the frequency and size of wage increases and found that the issue of granting a wage increase is not left to the employer`s discretion and cannot be decided without negotiation with the union.
Since 2003, the U.S. Supreme Court has failed to resolve whether wage increases are mandatory collective bargaining issues, so federal appels courts have developed their own rules to address this issue. If an employer does not exercise discretion to determine the date or amount of the wage increase, the issue of wage increases is a matter of collective bargaining. NLRB v. Beverly Enter.-Mass., Inc., 174 F.3d 13 (1st Cir. 1999). Even if an employer exercises some discretion in setting wage increases, such as an annual increase to cover the cost of living, this circumstance does not prevent wage increases from becoming a subject of duty if the company has long been granting such wage increases. NLRB v. Pepsi-Cola Bottling Co., 00-1969, 2001 WL 791645 (4.
Cir. July 13, 2001). The Court considered whether an employer`s decision to terminate certain transactions was a mandatory bargaining object. The Court, which relied primarily on the agreement of Stewart in Fibreboard J.A., found that the decision to discontinue all operations on a given site was an economic-motivated management decision, separate from the employment relationship, when it clearly called into question job security. However, the Court found that the effects of the employer`s decision, such as severance pay and benefits, were mandatory bargaining elements under Section 8 A(5) NLRA. This is why, under this fibreboard-First National Maintenance Framework, the main economic decisions, such as plant closures, layoffs and relocations, are not mandatory bargaining partners, although the employer must intervene as a result of these “impact negotiations”. In Sweden, the scope of collective agreements is very high, although there are no legal mechanisms to extend agreements to entire industrial sectors. In 2018, 83% of all private sector employees were subject to collective agreements, 100% of public sector employees and 90% in total (compared to the overall labour market).  This reflects the predominance of self-regulation (regulation by the labour market parties themselves) over state regulation in Swedish industrial relations.  The NRL regulates labour relations only for companies involved in intergovernmental trade; it therefore does not protect the interests of collective agreements of all categories of workers.