That's not exactly true. It's a partnership between the government, the unions, and the employers with the government usually taking the role of mediator.
"The Swedish model & collective agreements – a brief introduction
The Swedish labour market model in a nutshell
In the Swedish labour market model, the social partners (trade unions and employers’ organisations) are responsible for wage formation. The social partners also have a key role in establishing other employment conditions in the labour market.
The legislation constitutes a framework that supports this model, for instance, through provisions on association and negotiation rights and the right to take industrial action. The social partners have significant autonomy to regulate the precise conditions through collective agreements. Many statutory regulations can be replaced with collective agreements. There is no legislation on minimum wages or universal application of agreements.
Another key feature of the Swedish model is that disputes are resolved in the first instance through negotiation. A prerequisite for the model is that collective agreements cover most of the employees on the labour market"
https://www.mi.se/app/uploads/the-swedish-model-and-collecti...