Fate of consolidated incomes policy settlement clear by Friday or Monday

Following a break of several years, a consolidated incomes policy settlement is emerging in Finland. The parties to this national incomes policy framework settlement are the national labour and employer confederations together with the Finnish government.

The Executive Board of the Central Organisation of Finnish Trade Unions (SAK) today announced that the new settlement has adequately broad coverage in national collective bargaining sectors. Other confederations are expected to confirm final adoption of the framework settlement on Friday or Monday.

The trade unions and employers' federations have been negotiating on ways of linking their collective agreements to the framework settlement since the middle of October. The deadline for these negotiations was Thursday 24 November. The outcome is that 92 per cent of the workforce have now concluded collective agreements honouring the terms of the framework settlement.

Bargaining sectors remaining outside of the framework settlement include construction and the graphical industry. Further negotiations are still taking place on collective agreements for road transport and dock workers.

"A victory for labour and employees in Finland"

Lauri Lyly, President of the Central Organisation of Finnish Trade Unions (SAK), regards the national incomes policy framework settlement as a victory for labour and employees in Finland:

&#;8220The framework settlement incorporates a scale of employment reforms that could not have been achieved through collective bargaining at industry level. The consolidated agreement also promotes the goals of the trade union movement for social progress and labour legislation."

Wage increases capped at 4.3 per cent

The framework settlement incorporates substantial qualitative improvements in working conditions, together with wage increases for the two-year period. The first stage will last for 13 months with a total payroll cost impact of 2.4 per cent. This will be followed by a second period of 12 months with an impact of 1.9 per cent. Employees will also receive a lump sum non-recurrent bonus of EUR 150.

The framework settlement also includes provisions on enlarged training opportunities for employees, extended paternity leave and improvements in unemployment benefit. The details of some of these qualitative enhancements will be settled through collective bargaining, while others will involve new legislation.

The duration of various sectoral collective agreements will vary by industry, depending on when the wage increase period or general validity of the current collective agreement ends. The earliest collective agreements concluded in SAK-affiliated sectors under the framework settlement will take effect retroactively as of 1 October 2011, while the latest will enter into force on 1 September 2012.

Further details of the national incomes policy framework settlement (news item, 14 October 2011)