JHL (25.08.2012 - Heikki Jokinen) JHL chairperson Jarkko Eloranta is worried about the planned new cuts in state payments to the municipalities. This year the cuts amount to 1.1 billion euro. About a third of this, 362 million euro is from new cuts.
"The municipal economy has been shrinking during the whole government period", Eloranta says. "According to our surveys negotiations to cut personnel expenses have been held in one fifth of the municipalities."
Many municipalities have been looking to make savings by not employing new personnel to replace those who retire. Temporary lay-offs have been put into effect in 15 municipalities.
A worsening economy has also led to accelerated outsourcing and privatisation. To sell off public services is not only a question concerning terms of employment; it also has an effect on the whole national economy.
"An example of a mistake was the selling off abroad of the national transmission and broadcasting networks. This company, Digita Oy, by virtue of its monopoly, is able to invoice Finnish media companies to the tune of 90 million euro a year, and avoid taxes by sending the profits to a tax-haven in Luxembourg."
"We do not need a single mistake like this once again, neither in the municipalities nor in the state", Eloranta stresses.
According to the survey of Local Government Employers KT municipalities and joint municipal authorities will proceed with temporary lay-offs in respect of more than 31,000 employees this year. This is four times more than last year.
JHL expects from the ongoing state budget negotiations first of all fair economy policy and the safeguarding of municipal resources.
Finland has 320 municipalities and 136 joint municipal authorities. In 2013, these local authorities employed about 432,000 employees.