Labour market organisations prepare for autumn incomes policy negotiations

Preparations are once again under way for a new incomes policy bargaining round in Finland. Over the coming months the country's labour market confederations will investigate the prospects for reaching a comprehensive, long-term economic and incomes policy accord, and whether the time is ripe for centralised negotiations in this area. The current incomes policy settlement expires on 15 February 2005.

The labour market confederation leaders met with Finnish Finance Minister Antti Kalliomäki on 10 August to discuss the outlook for an autumn bargaining round. The confederations submitted a joint communiqué to the Minister, stating that the prospects for a comprehensive incomes policy settlement also depend on government action in important policy areas such as employment, growth in purchasing power and skills development.

The confederations believe that the principal challenge in the upcoming bargaining round will be to reach a common understanding on wages, pay structure and employee security during business restructuring, with a view to promoting growth in the level of employment. The confederations also feel that improved operating conditions for businesses and an increase in employee purchasing power are essential elements in any strategy seeking favourable economic and industrial development.

The general ageing of the population and fiercer international competition now impose exceptionally tough demands on the upcoming economic and labour market policy settlement.