Industrial Union President Riku Aalto announces ten per cent pay claim

Affiliates of the Central Organisation of Finnish Trade Unions (SAK) will seek wage increases of ten per cent. The aim is a six per cent pay rise in the first year or at least EUR 150 per month for full-time work. A follow-up increase is 4 per cent in the second year or at least EUR 100 per month.

The unions will negotiate their own settlements and wage increases with their respective employers’ federations in the coming winter and spring. The Industrial Union has already begun its collective bargaining round.

“Employee purchasing power has fallen dramatically due to rapid and substantial price rises. Wages are no longer worth as much, and we need bigger pay rises to correct this problem,” explains Industrial Union President Riku Aalto.

Even though the rate of inflation has slowed recently, Aalto points out that the loss of purchasing power remains. A slower inflation rate still retards growth in purchasing power. Aalto notes that the new pay demand allows for both previously eroded purchasing power and projected inflation over the new settlement period.

A flat-rate policy is necessary

Service Union United (PAM) President Annika Rönni-Sällinen is similarly concerned at the collapse in purchasing power, finding that inflation has eroded the position of low-income earners.

“Price rises are not the same from everyone’s point of view. Our assessment is that the low paid in full-time work need a monthly raise of at least EUR 150 in the first year and EUR 100 in the second year to keep pace. This flat-rate policy will ensure that everyone gets the required pay rise, and it allows for the special circumstances of low-income employees.”

Public and Welfare Sectors Trade Union (JHL) President Håkan Ekström also cites the impact of recent Finnish government cuts on union members, and women in particular, as grounds for the flat-rate wage demand policy.

“Low-paid employees have borne the greatest brunt of cuts in such areas as housing allowance and adjusted unemployment benefit. Wage increases really should be weighted towards lower income employees to compensate for these cuts, so we need a flat-rate policy for wage claims.”

The cost impact of a flat-rate wage demand policy may vary by business sector.

Finnish Food Workers’ Union (SEL) President Veli-Matti Kuntonen insists that higher wage demands are also a natural fit for current economic conditions.

“Particularly for low-income employees, wage rises will translate directly into higher consumption, providing a much-needed shot in the arm for Finland’s economy and employment. The Orpo Government has throttled domestic demand by increasing unemployment and uncertainty at work. It is time for businesses to step forward and prevent a collapse in domestic consumption.”

There is scope for adjustment

Finnish Transport Workers’ Union (AKT) President Ismo Kokko notes that price competitiveness is good in Finland, and would not be jeopardised by wage increases of only six and four per cent.

“We are quite competitive in terms of labour prices, and will be well placed to recover when the current economic downturn comes to an end in the near future. The Ministry of Finance repeated this most recently in September. Workers must also enjoy their share of economic growth.”

Construction Trade Union President Kimmo Palonen similarly calls for balance.

“A major government assault on the labour market and job security has increased risks for employees, and they should be compensated through higher wages. This is the mechanism of a market economy: a shift of risk from employers to employees should be fairly and reasonably balanced by a greater employee share of value added.”

Electrical Workers’ Union President Sauli Väntti calls attention to the sustained wage restraint that has already continued for some years in Finland.

“Our wage rises have long been moderate, and clearly smaller than pay settlements concluded elsewhere in Europe. Average labour costs in the eurozone between 2021 and 2024 rose by 15 per cent, compared to less than 8 per cent in Finland. There is scope for adjustment.”