Text: Lisa Wallström/Commercial Content | Foto: Knut Capra Pedersen | Translation: Sophie Miskiw

Even though unemployment insurance funds and trade unions aren’t the same thing, they’re two branches of the same tree.

“It is important to be a member of both, as they provide security in different ways,” says Göran Arrius, Chair of the trade union organization Saco and Akademikernas a-kassa.

Unsurprisingly, many see unemployment funds and trade unions as connected, as they have a strong link and shared history. 

“Originally, unemployment funds emerged from trade unions. Funds were collected from members to compensate those who lost their jobs,” says Göran.

Since the first unemployment funds were established over a century ago, trade unions and unemployment insurance funds have become an essential part of our welfare system. Today, the unemployment insurance funds have approximately 3.9 million members.

I always say that you should be a member of both.

“I always say that you should be a member of both because these two parts provide security in different ways and complement each other,” says Göran.

The trade unions negotiate collective agreements that ensure the members have fair conditions in their employment. As a union member, you can also get legal support if you encounter issues in your employment or face dismissal.

If you lose your job, the unemployment insurance fund provides compensation while you’re unemployed.

“Trade unions support you through that often overwhelming process. If you lose your job, the unemployment insurance fund provides compensation while you’re unemployed. The unemployment fund is a transition insurance, giving you time to find a new job,” says Göran.

However, to receive better financial compensation, union membership is a prerequisite.

“Most trade unions have supplementary income insurance included in the membership. It’s another important reason to join both the union and the unemployment fund,” says Göran.

The insurance supplements the compensation above the unemployment fund’s cap. The amount of compensation varies between the different unions.

In addition to financial security and legal support, there are other membership benefits that members can take advantage of. Especially early in their careers when many have little knowledge of their rights.

“Trade unions provide, for example, salary statistics. It’s good to see a fair starting salary when you’re taking your first job. If you start at a lower salary level, you’ll always be a bit behind,” says Göran.