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Since the mid-1960s Swedish industrial relations have undergone such fundamental changes that the very existence of a 'Swedish model' is now questioned. Nevertheless, given the continuing similarities between Nordic countries, and the differences between them as a group and other European countries, the notion of a 'Nordic model' of industrial relations still has descriptive and analytic value. First, therefore, the broad outlines of the 'Nordic model' will be presented. The main focus of the chapter, however, is on Swedish industrial relations: the roots of the 'historic compromise' between capital and labour in the 1930s, and the erosion of the Swedish model of 'self-regulation' and centralised bargaining by increased state intervention and pressures to decentralisation.
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