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8/18/05

Workers from new EU challenge Swedish model

JTW News

"Workers from new EU challenge Swedish model
By Patrick Lannin

STOCKHOLM (Reuters) - 'It's easier with a Latvian,' promises the recruitment agency's Web site. To drive the point home, it adds that staff from the Baltic state will cut a Swedish employer's wage costs by 50 percent.

The offer from a Latvian firm is the latest challenge to Sweden's decades-old system of setting wages through sector-wide deals with employers in a country where 85 percent of workers belong to a trade union.

The arrival of cheaper workers from new European Union members has inflamed the debate, with trade unions describing the practice of hiring low cost migrants as modern slavery."

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