SWEDEN: Damaging a Long-Standing Image

Labor strife disrupts a "model" welfare state

Before he could fly to Yugoslavia to attend Tito's funeral, King Carl XVI Gustaf needed special dispensation from striking air-traffic controllers at Stockholm's Arlanda Airport. That was one ironic consequence of the most disastrous union vs. management quarrel in Sweden's history. Nearly a million people—a quarter of the work force—had stayed off their jobs in the third consecutive week of labor disruptions. Some were on strike, others had been locked out. As the country faced economic paralysis, airports and most urban public transportation shut down. Only one major port, Halsingborg, remained open to receive...

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