Lauri Lyly, SAK: Justice and faith in employment

Although the settlement will remain in force for three years, it includes agreements on wage increases for only two years. The monthly wages and salaries of all employees will rise by €20 during the first year, and by 0.4 per cent in the second year.

Lauri Lyly, President of the Central Organisation of Finnish Trade Unions (SAK), stresses that the outcome of pay bargaining has been equitable.

"The general pay rise in the first two years of the settlement will apply to all employees in Finland, and these fixed increases are particularly equitable in expressly favouring low-income employees."

Lyly insists that it is especially important for moderation to include top management under current economic conditions in Finland.

“Leaders must also be involved in the general collective efforts of society, and must display the same reasonableness as everyone else in matters of pay."

Lyly stresses that the employees have lost nothing in this latest negotiated settlement, and he is pleased that it includes various qualitative improvements, particularly on such subjects as unemployment benefit.

“The €300 protected element to be introduced in adjusted unemployment benefit will make it easier for the unemployed to take up brief offers of work without risking loss of benefit due to minimal wage income. A cut in the unemployment benefit waiting period from seven days to five days will also improve the income of people losing their jobs."

Besides boosting employee purchasing power, the settlement will also bring greatly sought-after predictability to the Finnish economy.

“This will foster faith in the future and help the public to keep the domestic economy moving. The settlement will improve Finnish competitiveness and increase export opportunities for businesses. These benefits will combine to check the growth in unemployment, especially among young people," Lyly emphasises.

The SAK President nevertheless points out that this latest national accord alone will not be enough to get the Finnish export sector back on track. Businesses must also respond to the opportunities provided by the settlement with urgent investment in both R&D and marketing.

The trade unions in various sectors now have eight weeks to negotiate their own collective agreements based on the national settlement. Lyly observes that it would be unwise for the employers to raise any difficult issues in the course of these negotiations that might obstruct collective bargaining in their industries.

The national labour and employer confederations will assess the coverage of the collective agreements secured on the basis of the settlement on 25 October, and the settlement will take effect if sufficient coverage is achieved. Central government measures supporting the national labour market settlement will also take effect at this time.

Pact for Employment and Growth