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Rebellion Stirs in Sweden Against System That Keeps Wages Down

  • Municipal union says wage talks will be a ‘moment of truth’
  • Swedish central bank has struggled to bring back inflation
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Staffan Grondal, a surgeon at the hospital in Stockholm’s wealthy Danderyd suburb, had enough. Unable to offer enough pay to hire a nurse needed to keep his clinic running at full speed he decided to step down.

Grondal’s frustration is a warning of an emerging conflict that’s threatening to unravel the two-decade-old Swedish labor market framework that has kept wages in check to protect the country’s powerful exporters.