In this file photo, Swedish Prime Minister Stefan Lofven speaks to the media after losing a vote of confidence in the Swedish Parliament Riksdagen, Sept 25, 2018. (ANDERS WIKLUND / TT / AP)

Sweden’s minority government may be facing its worst crisis yet after talks between labor unions and employers’ groups broke down in the early hours of Thursday.

Without the hoped for labor agreement, Prime Minister Stefan Lofven is now under pressure to propose adjustments to existing labor laws. But some lawmakers have already threatened to put forward a motion of no confidence if the prime minister goes ahead with the plan.

Without the hoped for labor agreement, Prime Minister Stefan Lofven is now under pressure to propose adjustments to existing labor laws. But some lawmakers have already threatened to put forward a motion of no confidence if the prime minister goes ahead with the plan

Jonas Sjostedt, leader of the Left Party, has already said he’ll demand that Lofven step down if he tries to push through draft proposals to change existing labor law.

ALSO READ: Norway allows travel throughout Nordics, except Sweden

The tensions stem from an agreement Lofven struck after the last election. The inconclusive result following the 2018 vote forced him to enter political deals to secure enough support to rule. One such deal is now coming back to haunt him, namely a promise he made to the Center Party and the Liberals to relax labor market laws.

Such a step would be wildly unpopular with labor unions and even among members of Lofven’s own party, the Social Democrats. Proposals to make it easier for employers to fire workers are particularly contentious, and the leader of Sweden’s largest umbrella organization for labor unions, LO, said her organization would continue to fight them.

“We’re not giving up. We will use all available means to succeed,” Susanna Gideonsson, who is also a deputy on the Social Democrats’ executive committee, said on Twitter. “These are issues that should  While he may be facing an unprecedented crisis, Sweden’s prime minister has a history of surviving seemingly intractable conflicts. 

ALSO READ: Swedish PM Lofven voted out by parliament, new govt unclear

Many had written him off after the 2018 election, but his ability to maneuver his way through tough negotiations ultimately secured him a second term as prime minister.

The proposals drafted by a government-appointed inquiry include expanding the possibility for companies to make exemptions from seniority as the determining factor of who gets laid off in case of redundancies.

It would also be mandatory for employers to provide employees with education and skill development. Layoff costs would be cut by not allowing employment to continue in cases where an employee makes a legal claim to declare a termination invalid.

It also proposed removing the possibility to have a termination declared invalid in cases where the employer has fifteen employees or less. In such cases, employers would still need to pay damages if a court finds there was no legal ground for the termination.

Protection for employees with general fixed-term employment would also be strengthened.

The proposals would affect 2.8 million privately employed workers. According to the January agreement between the government and co-operation parties, the inquiry’s proposal will be implemented in 2022 if the social/labor partners do not agree.

READ MORE: Sweden revises COVID strategy after deaths of elderly spiral