Whither Solidarity? Transitions in Swedish Public‐Sector Pay Policy

As part of a drive for efficiency and decentralization in government operations, Sweden is implementing a new system of pay administration in the public sector that is marked by a clear movement away from centralized wage negotiation and fixed salary increases towards more flexible and individualized pay rates. Despite rhetoric about performance and efficiency, the changes appear to be focused mainly on expanding wage differentials among occupational groups and offering market premiums to recruit and retain valued employees. Although the new pay system has not been integrated into a general management approach, it offers considerable challenge to the norms and values of solidarity that have traditionally been held so strongly in Sweden.