Incomes policy settlement sought by weekend

Negotiations for a comprehensive incomes policy agreement have now been going on in Finland for about three weeks, and negotiators are hoping to achieve a final settlement by the weekend of 9 - 10 November. Meetings of the Executive Boards of the Central Organisation of Finnish Trade Unions - SAK and of the other Finnish employee confederations STTK and Akava have already been called for Monday 11 November with a view to considering any accord that is reached.

The reason for this tight schedule is an announcement by the Finnish government of a deadline of 2 December for presenting Parliament with any legislative proposals arising from the incomes policy agreement. Individual trade unions must be given enough time to incorporate the new national accord into their own industrial sector collective agreements so that it can be confirmed by the end of November.

So far the employer and employee organisations have found common ground on a range of issues, including an extension of the partial care leave system that enables the parents of young children to reduce their working hours. The right to partial care leave and to the associated social welfare benefit will be prolonged until the end of the child's second year of compulsory schooling, when the child is normally about nine years of age. Currently this right expires at the end of the autumn term of the first year. The negotiators have also been able to reach a provisional understanding on certain settlement procedures concerning temporary employment, arrangements for hours of work in families, and the health risks of shift workers. However, the accords that have been achieved in these areas will not be implemented unless the parties eventually conclude a comprehensive incomes policy agreement.

Questions concerning such matters as hours of work, the status of workers' representatives, improvements in job security, and some aspects of skills training for the adult population remain on the negotiating table. The negotiators are also still considering ways of preventing profiteering at the expense of migrant workers in Finland by improving supervision of employment terms.

Negotiations are now beginning on increases in wages and salaries and other aspects of employee purchasing power. The negotiating parties set out their pay claims and assessments of possible wage rises about one month ago.

SAK seeks social plans to protect the employee

One of the proposals brought to the comprehensive incomes policy negotiations by SAK is the introduction of social plans to improve employee job security. Businesses would be required to draw up such plans for each workplace when considering redundancies. An individual social plan would also have to be prepared for each employee threatened with redundancy, specifying such matters as any additional training required by the employee and various redeployment options in other departments of the enterprise. The individual plan could also cover opportunities to seek new employment during the period of notice or various financial support measures.

The social plan would be linked to a special security fund established to offset the costs of change in enterprises. The contributions of employers would then cover the costs incurred in implementing the social plan. Should the employer decline to prepare a social plan for a redundant employee, then payments would be made from the security fund directly to the employee concerned.

Supervision of migrant worker employment terms must be made effective

SAK insists that the rights provided by Finnish labour law and collective agreements must also be guaranteed to foreigners working in Finland. Unfortunately abuses involving the work permit system and terms of employment are common. The situation is further aggravated by the fact that Finland is one of the few European Union Member States in which there is no effective regulation of foreign subcontracted and agency labour.

SAK is calling for increased official powers to supervise the employment terms of foreign employees and for more resources to be allocated to these functions. At the same time it should become a criminal offence to pay wage levels falling below the minima established in nationally binding collective agreements. As employees coming from abroad seldom have the confidence to take legal action against their employers, the trade unions should be given the right to file such claims on the employee's behalf.

Incomes policy agreement requires strong measures to stimulate employment

In the current uncertain domestic and international economic climate the Finnish government should accompany the comprehensive incomes policy agreement with a significant increase in measures to stimulate employment. Coupled with a comprehensive incomes policy agreement supporting a steady rise in employee purchasing power, an employment package would provide a firm and credible response to the deteriorating employment outlook.

SAK proposes an employment package to the value of some EUR 100 million, the first EUR 20 million of which would be allocated to the current year. Such a package would include additional funds for adult education, enterprise investment and development projects, shipbuilding, road construction and housing renovation.

SAK Board specifies purchasing power objectives

SAK set out its own pay claims one month ago. The scheme proposed by the Central Organisation would have a cost impact on the national economy totalling 3.8 per cent in 2003 and 3.4 per cent in 2004. These wage claims consist of a flat rate general increase, individual trade union sector items with a cost impact of 1.0 per cent in the first year and 0.8 per cent in the second year, and a gender equality item with a cost impact of 0.3 per cent in each year.

At its meeting last Monday the Executive Board of SAK specified the character of the gender equality item. This item must allow for both low-wage sectors and for sectors with a high proportion of women workers. The item will seek in particular to improve the wages and salaries of women whose pay does not correspond to the demands and educational requirements of their work, and to offset the relatively low wages and salaries of certain sectors.