Sweden celebrated Swedish National Day and highlighted to deepen bilateral ties with the Philippines in key areas such as defense and security, industrial development, innovation, and healthcare.

Swedish Ambassador Annika Thunborg reiterated that the Philippines will remain Sweden’s strategic partner and will support the country in its goal for economic growth and quest for the rule of law amidst China’s unabated aggression.

“We support the Philippine Development Plan with the vision to improve the country’s economy and provide jobs to Filipinos,” Ambassador Thunborg said.

The lady envoy also revealed that there are around 40 Swedish companies doing business in the Philippines and she also brandished that Sweden is recognized as a global leader in innovation. Since 2016, when the Embassy reopened, Team Sweden — comprised of the Embassy of Sweden, trade and investment council Business Sweden, and Swedish private sector actors — has been actively collaborating with the Philippines in innovation and development. A few of its focus areas has been transportation, energy, retail, and circular economy with companies such as Atlas Copco, H&M, Lynk electric cars, PTC & Wallenius shipping, Volvo Buses, ABB, Nasdaq, BDO, and Transcom. This is possible through the “quadruple helix model” which involves collaboration with the Philippine Government, Swedish and Filipino private sector, international development institutions and other expert communities such as academia, as well as the inclusion of civil society. 

Team Sweden is keen to continue these collaborations, especially in security and defense, sustainable and responsible mining, and healthcare with companies such as Saab, Volvo Trucks and Construction Equipment, Sandvik, Ericsson Telecommunications, and Astra Zeneca.

“Sweden is committed to building a long-term and sustainable relationship with the Philippines. This is attested by the visits of our Minister of Trade Johan Forssell last year, the visit of State Secretary for Foreign Affairs Jan Knutsson and leading Swedish industrialist and banker Marcus Wallenberg earlier this year, and now with the Swedish Defence Minister Pål Jonson,” Ambassador Thunborg added.

At the event, representatives of the Swedish government highlighted the need to address common challenges such as the climate, economic security, and geopolitical tensions. Moreover, in an increasingly polarized world, it is crucial for states to have strong ties with like-minded countries. Sweden sees the Philippines as an important partner with common interests in free trade, the international rules-based order, and the green and digital transition. 

For his part, Swedish Defence Minister Pål Jonson said, “Peace and security have indeed for a long time been a priority area in the Swedish-Philippine relations. Sweden has since many years actively supported the Bangsamoro Peace Process, and our two countries also cooperate extensively on matters such as promoting and defending the UN Charter, the rules-based international order and respect for international law, including UNCLOS.”

Meanwhile, Philippines’ Defense Secretary Gilberto Teodoro, Jr. gave a message on behalf of President Ferdinand R. Marcos Jr.

In the President’s message, it noted that “The past 77 years of our relations have been marked by friendly exchanges and fruitful cooperation, particularly in the areas of trade and investments, maritime cooperation, energy, smart and green solutions, science and technology and of course, defense, your visit today, Minister Jonson is a testament to the deepening of our defense and security relations.”

Since 1983, Sweden has celebrated its National Day on the 6^th of June. This is the date on which Gustav Vasa was elected king in 1523, which laid the foundation of Sweden as a unified nation state, and on which a new, landmark constitution was adopted in 1809. 

More than the meatballs, shrimp sandwiches, cheese, Swedish sandwich cakes, and more, the celebration of Team Sweden in the Philippines, marked a significant milestone — that of its 500^th anniversary as an independent kingdom and nation.

Speaking during the celebration of Swedish National Day, Her Excellency Swedish Ambassador to the Philippines Annika Thunborg took pride in the unique characteristics of Sweden as a country that espouses openness, inclusion, innovation, sustainability, and the spirit of collaboration.

The ambassador also celebrated the longstanding friendship between Sweden and the Philippines, and highlighted the remarkable contributions of Swedish companies to fostering this relationship.

These Swedish enterprises include H&M, renowned for its high-quality styles and commitment to sustainability; IKEA with its record-breaking flagship store opened in 2021, and the likes of SAAB, Scania Trucks and Buses, Transcom, Atlas Copco, Volvo Cars, Volvo Buses, Trucks and Construction Equipment, Electrolux, Swedish Match, Ericsson, Retail Associates, Hitachi Energy, ABB, SKF, and Tetra Pak, among other notable names.

“While our countries are located on opposite sides of the world, despite the great geographical distance, there is plenty that binds us together and many commonalities between our regions,” the ambassador said.

“Every year our relationship strengthens and deepens, and the recent visit to the Philippines by the Swedish Minister of Trade Johan Forssell is just one of the latest testaments to this,” she added.

To foster understanding between the two nations, Amb. Thunborg mentioned in her speech four priorities of Sweden: security and unity; competitiveness; the green and energy transition; and democratic values and the rule of law.

These have been key to Sweden’s journey over the last century from one of the poorest countries in Europe to a prosperous welfare state with many internationally renowned companies and innovative startups. Some of them are the Swedish embassy’s corporate and advocacy partners.

With Sweden now holding the presidency of the Council of the European Union for the first half of the year amid globally challenging times, such as continued Russian aggression against Ukraine, climate change and economic difficulties, Sweden intends to engage more with the Philippines and support the need for safe and secure borders to build socially and economically sustainable societies.

For her part, Amb. Thunborg pressed on the need to respect the rule of law and the international rules-based system to preserve our planet for future generations. “We need the green transition to build peace and stability. Everything is connected,” she said.

This is an area in which Sweden has a lot to offer — from security and defense cooperation, as well as health education and capacity building, to retail and design, telecommunications, sustainable transport, and green industry and energy.

Thunborg said the Swedish government continues to collaborate with the Philippine government on such efforts, citing the recent hosting of a business forum on energy transmission and efficiency as one example.

Dubbed as “Green Transition,” the forum was staged in partnership with the Department of Energy and discussed how Philippine energy efficiency can materialize through partnerships with Swedish companies.

The Swedish ambassador, in closing, expressed her gratitude to her dedicated team and encouraged attendees to seize the opportunity to foster new connections, stating: “Let this evening be an opportunity for you to make new and enhanced connections as a testament to the ever-increasing, long-standing, and sustainable ties between our two countries.”

Through collaboration and building on the Swedish model of success, which emphasizes partnerships across sectors, Sweden has transformed from a struggling nation to a prosperous welfare state with globally recognized companies and innovative startups.

The ambassador’s remarks underscored the importance of working together to address challenges and highlighted the strong and enduring bond between Sweden and the Philippines.

For those who are not familiar with Swedish culture and work ethic, the Swedes are basically egalitarian, and when it comes to working with them, they give emphasis on balance work and recreation, compassion, inclusivity and a lot more impressive traits. These principles are already part of their DNA and interestingly, very palpable in the way they deal with people.

Apart from their quests for creativity and innovation, the Swedes give high importance to the dignity of workers and the integrity of every individual as well as the institution.

Mindful of the limited knowledge of the Filipinos about the Swedish culture, work ethics and values, the Embassy of Sweden in Manila and Swedish companies recently collaborated to understand the importance of labor rights and dialogue as crucial parts of furthering socioeconomic development in the Philippines.

In the event, At the Sustainability Talks: The Right To Decent Work forum, Atlas Copco, IKEA, Swedish Match, and Transcom presented their ongoing labor practices in the Philippines. Both the Department of Labor and Employment (DOLE) and the International Labour Organisation (ILO) joined the event and underscored the importance of enhancing the skills of Filipino workers. 

Sweden is a leader in corporate social responsibility and sustainable business. Swedish companies are trusted to act in a sustainable and responsible manner by working for labor rights, the environment, and anti-corruption initiatives. 

Georg Platzer, Head of IKEA Philippines which opened its largest department store in the world in Manila in December 2021, attributes IKEA’s success to the Swedish value of treating everyone with equal importance, and by treating their “co-workers” with dignity and respect. IKEA Philippines has given regular contracts and paid leaves to retail employees since the store’s opening. It also provides parental leave – four months for mothers and four weeks for fathers. Decent treatment of workers also extends to their supply chain, ensuring that factory workers have safe working conditions and fair wages. 

Platzer emphasized that the retail industry relies on their employees being “competent and confident” about the brand and products they are selling. The practice of contractualization hinders workers from developing these since retail workers are often transferred to a different store or brand before they could have specialized knowledge in their product category. 

Meanwhile, Swedish Match has a factory in Laguna Technopark, which is one of the largest factories in the world and employs more than 300 workers. The workers belong to unions and are able to negotiate for better compensation, healthcare, and insurance. Through these negotiations, the employees understand that Swedish Match provides the best benefits that the company can afford. 

Maribel Umali, Head of Human Resources Management of Swedish Match, adds that the company incorporates environmental sustainability in their factory, such as reducing greenhouse gas emissions, running on 100% renewable energy, and reduction of landfill wastes. 

In a second panel, guest speakers discussed the importance of productive labor, or giving workers meaningful and challenging tasks and providing them with resources to learn and develop job-related skills. 

Transcom, a business process outsourcing and customer service company which employs over 14,000 people in Metro Manila, Iloilo, Bacolod, and Davao revealed that they support the professional growth and personal development of their employees through career pathing, mentoring, and skills enhancement programs.

“We encourage learning by exploring within the organization, building careers in Transcom and thereby driving employee retention,” said Hilda Rhodora Palanca, the Head of Learning and Development of Transcom’s Global English Region. The company also champions gender equality and diversity by partnering with local government and non-government organizations for initiatives in diversity and inclusion and through on-site facilities such as a daycare for single parents and gender-neutral washrooms.

For Atlas Copco is an industrial company and a global leader in sustainable productivity solutions. It is present in 70 countries and has been operating in the Philippines since 1967. Vanessa Kristine Lapat, Atlas Copco’s Customer Support Manager, shared how they prioritized the morale and livelihoods of their employees during the pandemic. Specifically, by shifting to cloud computing early on and by avoiding company retrenchment and instead cutting back on non-compulsory allowances, allowing them to keep all workers employed. This has led them to achieve their company mission of consistently supplying innovative solutions that benefit their clients. 

Both DOLE and ILO also reinforced the value of investing in the Filipino workforce. 

Khalid Hassan, the Director of ILO’s Country Office for the Philippines, mentioned that the COVID-19 pandemic revealed the underlying labor issues in the Philippines: technological and demographic challenges, unemployment, gender disparity, and climate change. 

The Philippines is also a service-oriented labor market and due to the challenges in developing and improving the manufacturing and agriculture industries, the country misses its potential to create good and productive jobs in these areas. 

According to Hassan, the climate crisis will lead to the displacement of workers and result in nearly 6 million jobs lost but will create around 24 million jobs. However, those jobs require a higher level of education and training, thus workers and employers should prepare for this through lifelong learning and skills development.

The future of work is shaped by developing work institutions and infrastructure focused on human-centered policy, decent work, and sustainability. If skills in these areas are taught to the workers, the Philippines can be developed and competitive and move forward in terms of socioeconomic development. 

DOLE Undersecretary Carmela “Amy” Torres mentioned the department’s efforts to boost youth employability through programs such as the Jobstart Life Skills and vocational training with Technical Education And Skills Development Authority. On the topic of providing allowances to disadvantaged or displaced workers, Undersecretary Torres underlined this must be supplemented with skills training and job-seeking guidance in order for the worker to have a better chance of finding employment. 

Ambassador Annika Thunborg mentioned that strong labor movements as well as collective agreements between the employers and workers, have been crucial in achieving successful socioeconomic development not only in Sweden, but in other countries in Europe and the Nordic region. 

Before the unions in Sweden were strengthened and the labor market was regulated, there was chaos in the labor market. Employees struggled with bad employment conditions and lack of protective legislation as well as agreements about leave and salary. Strikes and unrest were common at the time.

To address these problems, the largest union for blue-collar workers Landsorganisation in Sweden and the Swedish Employers association met in a place called Saltsjöbaden outside Stockholm in 1938 and reached an agreement that was called Saltsjöbadsavtalet. 

This is a milestone agreement characterized by collective bargaining and collective central agreements between the trade unions and the employer organizations that negotiate and determine the working conditions and salaries in each sector. It is based on respect for the trade unions by the employers’ organizations and respect for the companies by the trade unions. “Collective agreements have created decent working conditions and stable labor markets without strikes and unrest which have been beneficial to employers, to employees, to companies, and to society,” said Ambassador Thunborg.  

As for Marlon Quesada, Regional Head of Learning of the Building and Wood Workers International, who has worked with various unions in Sweden and the Philippines, he shared that in discussing decent working conditions, it is very important to recognize both the laborer’s rights and the employer’s rights. He noted that through social dialogue, “unions can contribute to nation building and creating a stable society.”

Political journalist and educator, Christian Esguerra moderated the panel discussions in Sustainability Talks: The Right to Decent Work. 

In 2022, Sweden and the Philippines are commemorating 75 years of diplomatic relations, with the message of “Moving Forward Together” and a commitment to achieving sustainable development without leaving anyone behind.