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by hnbad
972 days ago
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Sweden does not have a minimum wage because unions are more efficient at ensuring livable wages than legislation and setting a legal minimum wage in this scenario would only benefit the bargaining position of employers by giving them a low-ball reference value. This is very different from the neoliberal argument against minimum wages which boils down to "if we need to pay workers a livable wage our profit margins would be tighter" or more charitably "if we need to pay workers a livable wage some jobs would become unprofitable and we'd have to lay those people off" (which only holds true when the jobs are non-essential to the company in such a way that laying people off doesn't mean outsourcing them - a lot of low-paying jobs are absolutely essential to business operations but are seen as cost centers because they don't directly contribute to revenue). The reason the EU is "pushing for minimum wages" is that the EU pushed for the liberalisation of markets in EU countries some twenty years ago (and its various extensions thereof) and that led to an increase in wealth gaps, a loss of income security, gutting of social welfare systems and the proliferation of temp work agencies (which e.g. in Germany were illegal up to that point and offer an easy way to sidestep unions). Minimum wage is a bandaid for the gashing wound left by market liberalisation. |
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This is beside the point of what a legal minimum wage is, orthogonal with negotiations through unions, and has nothing to do with liberalisation.
There is no reason for Sweden not to have a legal minimum wage. From an outsider's POV this really seems to be psycho-rigid stance "no our system does not need one!" when it actually does not hurt the system or negotiations through unions at all.
In a way, I think what's happening with Tesla is making noise because it's putting them on the spot. They are running around crying "but you can't do that!!" because the fact is that actually Tesla can and that's exposing the weakness of the whole system, which is actually informal and not backed by law at all.
That's not saying that Tesla won't back down and reach a deal with the unions, but they are only doing what they are entitled to do.