Helsinki (29.05.2015 - Heikki Jokinen) The idea for a labour market social contract is back. Earlier in May PM Juha Sipilä presented his ideas to the labour market organisations on extending Finnish working hours and other changes to the terms of employment. The negotiations fizzled out.
Now Finland's new government has taken a different tack. If the labour market organisations do not accept the list of measures proposed by the government, extra budgetary cuts will be imposed, along with further tax levies, totalling 1.4 billion euros altogether. But if the government list of measures is adopted there will be a ‘sweetener’, a one billion euro cut in taxes.
The Government Programme promises to present an exact list of proposals before the end of July and the labour market organisations will be obliged to commit broadly to the agreement before the end of August.