ABSTRACT

Macroeconomic problems stemming from the implementation of the Rehn-Meidner model, the political necessity to intensify redistributive policy objectives, combined with increasingly vocal demands made by employees for greater participation in work-related matters at the local workplace, established a challenging agenda for the Swedish labour movement. Reluctance to fully implement the Rehn-Meidner model had led to the partial unravelling of that combination of institutions and policy instruments. Consequently, a new initiative was required.