Approximately one hundred Turkish guest workers have not received their full wages after working for subcontractor Ankitech at Stegra's steel mill construction project in northern Sweden. The workers were denied collective agreement wages despite Ankitech having a formal agreement with the Building Workers' Union.
Union officials state Ankitech exploited the workers by paying substantially lower rates than required. When the union began demanding proper compensation, the subcontractor abruptly left the country.
Joakim Lindholm, chairman of the Building Workers' Union in Norrbotten, described the situation clearly. "Ankitech has cheated, deceived and exploited the workers. When we started making demands against them, Ankitech chose to leave the country."
The main contractor Gemkom, hired by steel company Stegra, initially contracted Ankitech. On Tuesday, the union reached an agreement with Gemkom to pay part of the workers' outstanding wages. Lindholm noted that workers will not receive full compensation for the wages Ankitech owed them.
Twenty-eight workers are covered by the new agreement, while others have already signed direct agreements with the main contractor. Lindholm declined to specify the exact amounts workers will receive.
Ankitech blames Gemkom for the wage dispute in their email response. They claim their contract with Gemkom requires the main contractor to bear "all additional costs resulting from Swedish regulations, union demands and collective agreements."
Gemkom firmly rejects this position. The company states through their lawyer that Ankitech bears responsibility for following employment terms. Despite this, Gemkom has taken responsibility to ensure workers receive fair compensation.
Gemkom reports paying workers a total net amount of 2,175,000 SEK so far. The company will pay additional amounts according to the protocol being signed with the Building Workers' Union.
Stegra emphasizes they require all suppliers to have collective agreements. Ankitech no longer works as a subcontractor for Stegra projects.
The situation highlights ongoing challenges in Sweden's construction industry with foreign subcontractors. Guest workers frequently face wage theft and poor working conditions despite Sweden's strong labor protections. This case follows similar patterns where subcontractors disappear when confronted with union demands.
Gemkom has implemented new preventive measures following the incident. The company established a special department to monitor subcontractors' wages, working hours and actual payments monthly. They have also strengthened follow-up procedures and improved cooperation with trade unions.
Sweden's construction sector relies heavily on foreign labor, particularly for major projects in northern regions. The industry has faced repeated criticism for exploitation of migrant workers despite Sweden's reputation for strong worker protections. This case demonstrates how enforcement gaps allow unethical contractors to circumvent labor laws.
The resolution remains incomplete for many workers. While Gemkom has compensated 80 employees directly, 34 workers who filed claims through the union await final settlement through the ongoing protocol negotiations.