Fintech giant Klarna has successfully averted a potential strike by reaching an agreement with its workers, the company announced today. The strike, which was scheduled for next week, was planned by Klarna employees in Sweden who were seeking a Collective Bargaining Agreement (CBA), a legally binding contract between an employer and a union representing the employees. This agreement comes after intense negotiations between the company and the union Finansförbundet, and will include members from all unions in the central organization Saco, which represents close to 1 million professionals in Sweden.
Key Takeaway
Klarna has reached an agreement with its workers, avoiding the previously planned strike in Sweden. The agreement includes joining the Banks Employer Organisation and signing a Collective Bargaining Agreement that encompasses all unions within the Saco central organization. The focus of the negotiations was to ensure operational freedom while respecting the Swedish model, and maintaining Klarna’s unique culture.
The Dispute Over a Collective Bargaining Agreement
The dispute arose due to Klarna employees not having the protections and benefits provided by a Collective Bargaining Agreement, which covers the working conditions and terms of employment for the majority of employees in Sweden. Almost 90% of employees in the country benefit from the provisions of such agreements.
Klarna CEO and co-founder Sebastian Siemiatkowski expressed his satisfaction with the outcome, stating that “after an intense week of negotiations,” the company had committed to joining the Banks Employer Organisation by January 1, 2024. Additionally, Klarna will sign a Collective Bargaining Agreement that encompasses all unions within the Saco central organization. Siemiatkowski emphasized the importance of the collaboration agreement in the negotiations, as it will regulate the working relationship between the company and its employees.
Preserving Klarna’s Unique Culture
In his statement, Siemiatkowski highlighted the significance of striking the right balance between Klarna’s agility and the principles of the Swedish model. He expressed confidence that this agreement would allow Klarna to maintain its operational freedom and continue making swift decisions, while also contributing to strengthening the Swedish model from within. The CEO emphasized the unique and successful culture of Klarna, which the company aims to preserve and nurture.
