JHL (25.04.2013 - Heikki Jokinen) Temporary lay-offs are on the increase at Finnish municipalities. JHL has collected information on all municipal temporary lay-offs and mandatory consultations with regard to possible personnel cuts. This data reveals that there are currently employees on temporary lay-offs in some 20 municipalities and new plans for similar measures are reported every week.
"Municipalities must do everything to avoid lay-offs and other forms of salary cuts", says JHL chairperson Jarkko Eloranta. "These measures would only cause harm to essential municipal services for citizens and further reduce already diminishing purchasing power."
The information collected is from January to March this year. Besides temporary lay-offs municipalities are also trying to save money by attempting to remove the holiday bonus pay for holidays, offering unpaid holidays instead and privatising services.
The most painful thing with regard to temporary lay-offs is that those hit hardest are those with the lowest income. In some municipalities the temporary lay-offs are targeted at basic services where salaries are meagre. "Most of those with low salaries are women, this is also a question of equality", Eloranta points out.
The municipal economy situation is very difficult. Recent government framework budget decisions will have the effect of shaving a further 800 million euros from the municipal economy in the years 2014-2017.
The Government must now come up with measures on how to improve the municipal economy, Eloranta says. "Provision of basic services must be conducted well and properly. It is a question of values and will to ensure public services are delivered in economically hard times also."
Eloranta is keen to stress that public services create work both directly as jobs and through services. "With welfare services we can guarantee to businesses a stable environment that encourages the taking of risks. At the same time public services create the elements of success for Finland in a difficult competitive situation. An intact and functioning society, together with a healthy and educated people are the world's best competition factors."