The Unionen and Swedish Engineering unions say that their members will strike on 7 November if they do not secure a collective agreement.

Unionen says that work to reach a collective agreement – which would affect employment, working hours, vacations and job security – has been ongoing for several years, with negotiations taking place since March.

However, Martin Wästfelt, head of negotiations at the union says: “Throughout the process, Klarna has repeatedly both canceled and postponed already booked negotiation opportunities. Nor have they fulfilled agreed commitments.

“Now, unfortunately, we see no other option than to announce a strike.”

Klarna CEO Sebastian Siemiatkowski has hit back at the unions on X, claiming that they have told employees that “they will be locked out and lose their pay if they don’t strike”.

He continues: “The union says they [employees] will be put on a list and will not be allowed to become members of any other union ever again unless they strike”.

Siemiatkowski concludes: “This creates enormous stress on our employees and our primary focus is their well-being. We will return later.”