1. Mergers and Employee Involvement
From a Swedish Perspective
Erik Sjödin
Faculty of Law, Uppsala University
Mikael Hansson 1 1

2. Employee Involvement in Sweden
Co-determination act
Collective agreements
Employee Board Representation
Employee Board representation
Applies to companies with more than 25 employees
Appointed by the local trade union with a collective agreement
Excluded from decisions on collective agreements, action and “policy-making”

3. Co-determination act Right to Negotiations
Obligation to initiate negotiations
Trade unions with collective agreements
Before significant changes
Obligation to inform

4. The Co-determination act and mergers
Mergers and transfer of undertakings
Obligation to negotiate in accordance with section 11 or 13
Obligation to inform

5. The Co-determination act and mergers
Change of ownership
Offeree company (målbolag)
Negotiations and Information?
Offeror (budgivare)

6. Collective agreements
“Utvecklingsavtalet” from 1982
Corporate groups
“Worker Consultant”

7. Sanctions Co-determination act Collective agreements
Economic and punitive damages
Collective agreements

8. Take over act Shares traded on a regulated market
An obligation to inform the employees
Offeree (Budgivare):
Inform the employee of the bid when public
Offeror (Målbolaget)
Inform the employees on the bid when public
Inform the employees on the boards view on the bid
Sanction

9. Take Over Rules Self regulation connected to the regulated markets
Obligation to inform the Employees
Attach any deviating opinion to the recommendation to the shareholders
Interpreted by the Aktiemarknadsnämnd

10. Employee participation and cross border mergers
Initiate a Special negotiating body
Agreement on employee participation in the formed company
Shadow of the subsidiary requirements
No such agreements as of yet in Sweden