[3] Since the Swedish General Strike of 1909 the labour market had been characterized by unregulated conflict, with the SAF and LO as the main actors.

After the Social democratic government's bill was rejected in parliament in 1935, negotiations started between the SAF and LO, which resulted in the Saltsjöbaden Agreement in 1938.

[5] The Saltsjöbaden Agreement launched an era of consensus and cooperation in the Swedish labour market, the so-called "Saltsjöbaden spirit" (Saltsjöbadsandan), which characterized labour policy in Sweden at least until the late 1960s, when the LKAB industrial conflict marked the start of a period of confrontation and decreasing consensus.

In the early 1980s, the parties again sought consensus, which culminated in the signing of the Development Agreement (Utvecklingsavtalet) between the LO, SAF and PTK.

[6] By that, the traditional Swedish model of industrial relations, containing a prominent role of collective agreements (regulation by the labour market parties themselves) and a climate of co-operation, was restored after a period of confrontation, particularly in the 1970s.