SAK: consolidated incomes policy settlement proposal inadequate

The Central Organisation of Finnish Trade Unions &#;8211 SAK today turned down a proposal from the national employers' confederation for wage increases and a package of qualitative improvements in working conditions. The employers proposed a 25-month consolidated settlement incorporating a wage increase of 2.4 per cent for the first 13 months and 1.9 per cent for the remaining year. The proposal included no special allowances for alleviating low pay or promoting gender equality.

At its meeting today the Executive Board of SAK found the offer of a consolidated incomes policy settlement to be unacceptable in this form. Although several favourable measures were identified in the package of qualitative improvements, these were not considered adequate as a whole. The proposed wage increase was also considered unacceptably low and lacking in structural solidarity.

The Finnish Confederation of Professionals - STTK, representing salaried employees, also turned down the employers' offer. Leaders of the national labour and employer confederations will meet today at 4 p.m. to consider the prospects for continuing to pursue a consolidated incomes policy settlement.

Employers shy of consolidated settlement in the spring

Negotiations since late September have focused intensively on securing a consolidated incomes policy settlement of the kind last applied in Finland in 2005-2007.

As late as last spring the employers, represented by the Confederation of Finnish Industries EK, had opposed proposals for a consolidated settlement and called for collective bargaining to continue at individual industry level as in previous years. The employers nevertheless retreated from this position as gloomier economic forecasts emerged in the autumn. Their enthusiasm for a consolidated settlement was also boosted by the current round of collective bargaining in the technology industries, where unions have been calling for an annual wage increase of 4 per cent. The employers evidently feared that this demand would lead to increased wage competition in other sectors.