Helsinki (08.07.2002 - Juhani Artto) The European trade union movement should have a European level collective bargaining strategy. This recent proposal was made by Lauri Ihalainen, President of SAK, the largest central trade union organisation in Finland. Ihalainen also presently leads the Council of Nordic Trade Unions. "The strategy would clarify the goals and division of labour in European level agreements made for individual industries and for several industries."

Ihalainen considers that national agreements will continue to have the main role in the immediate future, and that European bargaining will supplement national bargaining. However, he envisages that cross-border bargaining will undoubtedly increase. Progress will be made especially within multinational enterprises to unify the principles of their staff and salary policies. Common recommendations and positions by European level labour market organisations will also increase.

The SAK leader sees no alternatives to co-ordinating EU Member State salary and collective bargaining policies. "The common currency has increased the need for dialogue on economic policy." Preparations for this have been going on since the late 1990s within EU policymaking.

The employment agreement made by the European Council in summer 1999 gathers into a common consultation the Union's principal participants: the Council, the Commission, the European Central Bank and the European labour market organisations. Ihalainen stresses that the European employment strategy approved by the European Council obliges the Member States to allow for employment issues in their national policy.

He emphasises the need to expand the same approach to the new Member States. EU enlargement will greatly increase the income and living standard gaps within our common European family, Ihalainen says. Narrowing these gaps will be possible only through general economic development and assistance from the EU. One form of such assistance could be EU-level framework regulations to enable and enhance collective bargaining in the new Member States.

Lauri Ihalainen favours European level co-ordination of incomes policy and other economic policy goals to prevent unhealthy wage and salary and tax competition. An EU Member State databank on economic, labour market and pay development should be set up to support co-operation.