Klarna has reportedly avoided strike action for its workforce after much back and forth between the BNPL giant and unions in Sweden. 

According to TechCrunch, a dispute over the lack of a Collective Bargaining Agreement (CBA) has been settled and unions have tapered down in their potential strike action plans, which were set to take place this week. 

The Unionen and Swedish Engineering unions had previously highlighted the influence they desired over ‘safe conditions and the possibility of adjustment support’. They also underlined the need for a collective agreement in a bid to improve the working conditions for those at Klarna.

Speaking to TechCrunch, Klarna CEO and Co-Founder Sebastian Siemiatkowski, described the period of talks as being ‘intense negotiations’, which saw a conclusion reached in terms of the CBA and the union. 

He added: “I am pleased that we have reached an agreement that combines Klarna’s agility with the clarity of the Swedish model. Our focus in the negotiations has been to secure operational freedom, to continue being able to make quick decisions and to cultivate our unique and successful culture.

“I am confident that we will benefit from this agreement and that Klarna can contribute to making the Swedish model stronger from the inside.”

It comes ahead of Klarna getting set for UK expansion through the launch of a new British Holding Company – eyeing a new route to stock market floatation. 

The group told Sky News that the process has begun for an IPO, in a move that has long been touted and won’t impact roles or focus within the company. 

Klarna is set to release third quarter results this year as the firm looks to continue expansion plans off the back of a post-pandemic downturn.