LO Sweden: Can an Old Model be Renewed?

LO Sweden is starting a high-level commission on a “new Swedish model”. Long ago, Sweden was known for what was called the Rehn-Meidner model. The idea was that union wage strategies and government policy should be combined to promote full employment and fair distribution while respecting the autonomy of unions and employers. The basic element was a “solidaristic” wage policy which would raise the income level of low-income groups and simultaneously speed up structural change and thereby create more jobs in the future. Unemployment benefits and active labour market programmes would give workers security in the process of change; a “security of the wings”, as Gösta Rehn, LO economist at the time, phrased it. In this guest post, Ingemar Lindberg discusses the huge task of this new commission: How to re-establish a strategy for these goals in our times?