Klarna employees in Sweden announced a strike in November

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Klarna, a buy now, pay later giant, is facing problems in Sweden, where its employees are threatened with a strike starting on November 7, if the company fails to reach an agreement with them.

Reports say that the Unionen and Swedish Engineering unions have announced that their members, some of whom work at Klarna, will go on strike if the firm doesn’t hear them out and make appropriate changes.

Unions claim that Klarna attempted to delay negotiations

Unionen stated that the goal is to reach a collective agreement affecting working hours, employment, vacations, and job security. The unions have been trying to negotiate with the company since March of this year, but efforts to improve working conditions for Swedish workers have been going on for years.

The union’s head of negotiations, Martin Wastfelt, stated that Klarna has canceled and postponed a number of negotiation opportunities throughout the process. The company failed to put in the appropriate effort even to attempt to reach a deal, and it never fulfilled the commitments to which it did agree in the past. He said that “It takes two to have something to negotiate on.”

Now, the unions have lost their patience, and they see no other option besides announcing a strike until their demands have been taken seriously.

Klarna CEO says that the unions are their members to strike

Sebastian Siemiatkowski, the CEO of Klarna, stated on X that the firm’s employees are in shock, as they believed that they can decide for themselves whether they want to strike or not.

He states, “The union says they will be locked out and lose their pay if they don’t strike. The union says they will be put on a list and will not be allowed to become members of any other union ever again unless they strike So far, the unions aren’t announcing specifically which employees those are, and those who aren’t in those unions are worried about what’s going on This creates enormous stress on our employees and our primary focus is their well-being.”

In other words, the unions are forcing the employees to go on strike, or else they would suffer consequences, according to Siemiatkowski.

So far, Klarna has not said how many people it employs in Sweden. However, the unions estimate that the number is at around 2,000 individuals. The unions did not say how many of those workers are their members, but given that joining the union is not mandatory for Swedish workers, chances are that not all of them are.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.