JHL (14.10.2014 – Heikki Jokinen) The Helsinki City Council decision to split up the municipal enterprise Palmia into a company and a municipal enterprise is a disappointment for JHL. The Council voted for corporatisation of Palmia with votes 43 to 41.

The neutrality demanded by competition legislation should not have necessitated the corporatisation of Palmia real estate services, cleaning services and security services”, says Jarkko Eloranta, chairperson of the Trade Union for the Public and Welfare Sectors JHL.

Palmia work had already been made more effective and efficient in cooperation with the employees. This work could have been continued, but there was no political will for that in the City Council.”

According to the City Board the corporatisation of Palmia will not water down terms and conditions of employment for those 1,400 employees who are to be moved to a new company. JHL is now following carefully whether this will really happen.

It is a matter of trust and morale. If the decision makers go back on their word immediately after the period of transfer is over and the terms of employment are diluted, it shows a total disregard for employees and their livelihoods”, Eloranta says.

The JHL members working for the City of Helsinki do not place too much trust in the words of City decision makers. Before the City Council vote JHL asked whether their members trust that the terms of work will remain the same in the event of corporatisation. Some 70 per cent of those who replied said no.

JHL had campaigning vigourously against the corporatisation of municipal services and the splitting up of Palmia.

Read more:

One day industrial action in Helsinki against corporatisation of public services (16.09.2014)