Dominant language: These are just translations of Swedish chords. Collective agreements for the steel and metallurgical industry, the cardboard and cardboard industries (pulp and paper) and SVEMEK (Svetsmekanisk industrin/Welding Engineering Industries) have been translated into English. The analysis concluded that local wage setting does not necessarily result in local wage training. Often, one employer felt that it was more practical to implement a general pace of wage growth, even though the agreement may have allowed for differentiation. There were two main reasons for this scheme. Some employers found that more egalitarian wage increases fostered a productive sense of fairness among workers, particularly given the standardization and anticipation of higher wages for all each year. Other employers have found that the cost of establishing a transparent and fair mechanism for wage differentiation entails transaction costs greater than derivative performance. This was particularly the case for agreements that include a guaranteed minimum increase for each employee and a pool of money to be distributed individually. Because of the trend towards centralized wage formation, even though wage setting was formally local, companies had limited capacity or a willingness to use strategic wage setting as an instrument for business development. The authors also found that, to the extent that collective agreements in Sweden largely characterize wage formation through annual wage variations, many companies prefer to use pay levels for new employees and career managers for strategic wage setting. Companies reward workers in a way that bypasses the often inflexible annual wage changes described above, hiring new employees at different rates, based on their basic characteristics, and creating career ladders with clear pay increases (for example. B management and junior positions). This practice was more common among employees than among workers, as workers` collective agreements often set entryal wages and sometimes standard wages for certain positions and therefore have a greater influence on these aspects of wage setting.