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Fintech juggernaut Klarna has defused a looming strike threat by sealing an agreement with its workforce, averting a potentially disruptive labor action in its home country of Sweden.
Klarna employees were on the verge of a strike next week, fueled by a dispute centered around the absence of a Collective Bargaining Agreement (CBA) — a formal legal pact that delineates the terms and conditions between an employer and the employees' union. In Sweden, almost 90% of workers enjoy the protections afforded by various CBAs, but Klarna's employees were among the remaining 10% lacking such safeguards.
Klarna's CEO and co-founder, Sebastian Siemiatkowski, stated in an email to TechCrunch that the company had successfully concluded negotiations, thereby committing to join the Banks Employer Organisation by January 1, 2024. Furthermore, the company reached a significant accord with the union Finansförbundet, entailing the signing of a CBA that encompasses members from all unions under the central organization Saco, the Swedish Confederation of Professional Associations, boasting nearly 1 million members.
Siemiatkowski emphasized that during these negotiations, Klarna placed special emphasis on the collaboration agreement, a framework that governs how the company and its workforce will collaborate.
In his words, "I am pleased that we have reached an agreement that combines Klarna’s agility with the clarity of the Swedish model. Our focus in the negotiations has been to secure operational freedom, to continue being able to make quick decisions, and to cultivate our unique and successful culture. I am confident that we will benefit from this agreement and that Klarna can contribute to making the Swedish model stronger from the inside."
