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WORKING IN SWEDEN

Swedish government proposes hike to work permit salary threshold

The government wants to see a sharp increase in the minimum salary required for work permits to combat "cheating and unhealthy competition", integration minister Anders Ygeman told a press conference.

Swedish government proposes hike to work permit salary threshold
Integration Minister Anders Ygeman at a press conference. Photo: Henrik Montgomery/TT

On June 9th, the government are expected to propose a change to work permit laws altering the minimum salary for work permit applicants. Currently, applicants must earn at least 13,000 kronor a month for their applications to be accepted – the government want to see this figure more than doubled.

“This limit has contributed to gross exploitation on the Swedish labour market and a breeding ground for cheating and dumped wages,” Ygeman told a press conference.

“We don’t need labour migration to jobs which don’t require an education and where there isn’t a shortage of staff.”

It’s not yet clear what the new salary limit would be, although Ygeman has said that the Moderates’ suggestion of 80 percent of the Swedish average salary, which would be a limit of 27,000-28,000 kronor, would be a reasonable starting point.

“I want to discuss this with the other parties and with labour market actors to reach broad support. I’m convinced that we will reach an agreement, as I have interpreted it, there is strong support for this.”

The new salary limit, which the government hope will be in place by the end of the year, is the latest in a string of proposals to tighten up labour migration.

As recently as June 1st, new rules came into effect, including a new talent visa for certain highly-educated, highly-qualified applicants, and a requirement that work permits can only be issued to applicants with a signed work contract.

Ygeman does not consider the rules which have already been proposed to be sufficient.

“I would say in fact that we need further measures going forward. We will, among other things, increase control and sanctions for those who continue to abuse the system,” he said.

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NORTHVOLT

Migrant workers let go from troubled Northvolt on their first day at work

Migrant workers were let go on their first day on the job at Northvolt this week, reports Sweden's public radio broadcaster.

Migrant workers let go from troubled Northvolt on their first day at work

The struggling Swedish battery producer earlier this month warned that it would have to cut jobs as a result of its economic crisis.

This week, an undisclosed number of migrant workers were let go before the formal round of layoffs has even started, reports Sveriges Radio’s news programme, Ekot.

FOR MEMBERS:

“They’ve left a whole life behind to invest in a future here. I would like Northvolt to answer the question of how they’re going to look after these people,” Lena Lundgren, local coordinator for the IF Metall metalworkers’ union, told Ekot.

Northvolt writes in an email to Ekot that they are in contact with the people affected to help them.

Layoffs are usually regulated according to a fairly strict process in Sweden, but the rules for dismissing people are much more relaxed when it comes to the probationary period (usually the first six months). Unlike those with permanent contracts, the reasons for dismissal don’t have to be justified or documented as they would for permanent employees, and employers don’t have to give as much notice.

Earlier in September, Northvolt said it had not yet made any final decisions on how many jobs the company might make redundant, but that it was going to have to make “difficult decisions on the size of our workforce” in order to meet its objective of focusing on large-scale cell manufacturing.

It said it had launched talks with trade unions to minimise the number of redundancies.

“As difficult as this will be, focusing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the Western ambitions to establish a homegrown battery industry,” Northvolt CEO and co-founded Peter Carlsson said at the time.

  • Do you know more about the situation at Northvolt? Email The Local’s editor at emma.lofgren@thelocal.com to share your story with us. You can be anonymous in any article we write and we will never disclose your identity against your wishes

Northvolt is the latest in a series of Swedish tech giants to struggle with the economic pressure of the past few years.

Swedish telecoms equipment company Ericsson said earlier this year it was cutting 8.6 percent of its Swedish workforce.

In early August, the Swedish Labour Ministry announced that the country was facing its highest unemployment rate in a decade, excluding the pandemic period.

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