Lyly: Finland must find the political will to boost employment

In a keynote address to the General Council of SAK on Thursday Lauri Lyly, President of the Central Organisation of Finnish Trade Unions (SAK), called on the social partners and the whole of Finland to show strong political will for improving employment. Lyly stressed that this is essential now that the economic downturn has begun to affect not only industry, but also private services, construction and the public sector.
23.05.2013 11:37
SAK
Lauri Lyly

“Too many SAK union members and Finnish working families are now struggling with unemployment and the fear of imminent redundancy. This cannot continue, and an upturn in employment and economic growth is sorely needed."

Lyly focused on the need for a general accord to boost employment and employee purchasing power:

“An integrated solution to the question of pay rises, inflation adjustments to the tax system and modifications to earnings-related pension and unemployment insurance contributions would be a rational ambition for the autumn collective bargaining round from the perspective of employees, and so another attempt at securing a broader negotiated accord is worthwhile. This would also be the only forum that is even competent to discuss the pension contribution policy proposals that were formulated by the employers in the spring. Such matters cannot be agreed with individual trade unions."

The SAK President also focused on negotiations to reform the pension system:

“We will have to consider whether the present mechanisms are fair and adequate. It is not necessarily easy to prolong working careers in the kind of occupations that are organised by SAK-affiliated trade unions. People are living longer, but there are physical and psychological limits to the number of years that people can spend working in strenuous occupations. I personally incline towards the view that the duration of a working career should be a relevant consideration when determining the time of retirement."

Lyly feels that Finland still needs individual solutions for managing the transition to retirement, and he remains unhappy with cutbacks in part-time retirement and similar arrangements.

“The invalidity and old-age pension systems are too stereotyped, and should not be the only ways to retire. This means that the envisaged cuts in individual and part-time retirement reflect a misguided policy."