Employee funds

Employee funds (Swedish: löntagarfonder) were funds in Sweden into which a proportion of company profits were put and used to buy shares in companies. The funds were controlled by representatives by Swedish trade unions.

The idea was launched in the 1970s, with Rudolf Meidner playing a leading role in developing the idea, and they were in place 1982–1991. Throughout their existence, they caused much political controversy. Proponents described them as an attempt to increase the power of labour over Swedish companies, and opponents described it as large step towards socialism.

Their introduction followed a Social Democrat victory in the Swedish general election, 1982, and they were abolished following their loss in Swedish general election, 1991. Subsequent Social Democrat victories, such as the one in 1994, did not lead to their reintroduction, as leading members of the party found the whole debate surrounding these funds a problem for the party. Famously, Minister of Finance Kjell-Olof Feldt was captured on camera while scribbling negative words about the funds in his bench in Parliament already when they were introduced.