Often, an employer found it more convenient to implement a general pace of wage growth, even if the agreement would have allowed for differentiation. There were two main reasons for this scheme. Some employers have found that more egalitarian wage increases have fostered a sense of productive equity among workers, particularly given normalization and the expectation that wages should rise for all each year. Other employers have found that the costs of implementing a transparent and fair wage differentiation mechanism are consistent with transactions above derivative profits. This was the case, in particular, with agreements that contained a guaranteed minimum increase for each employee and a pool of funds to be distributed individually. Due to the trend towards wage centralization, even though wage setting was officially local, firms had limited capacity or willingness to use strategic wage setting as an instrument for enterprise development. The Swedish system of collective bargaining is widespread, with 85% of the private sector workforce covered by collective agreements. These collective agreements govern wage setting for different sectors and occupations in different ways. In general, however, the “cost mark” set by the social partners in the industrial sector is used as the standard for the level of annual wage revisions in the labour market. AddressIF Metall / The Swedish Industrial and Metalworkers UnionArbetslivsenheten / Departament of Working LifeOlof Palmes gata 11, 105 52 Stockholmwww.ifmetall.se The shift in the Swedish labour market to countless local collective agreements has raised concerns about the replacement of the industry standard (the cost mark) by a “no standards” labour market (Swedish Mediation Office, 2014). .