Helsinki (01.09.2013 - Heikki Jokinen) The trade union confederations SAK, STTK and Akava reached a central agreement on wages and salaries with the employers’ organisations on Friday 30 August. The agreement offers a very modest rise in pay across the board over the next two years.
All monthly salaries will be raised by a flat rate of 20 euros beginning four months after the agreement is valid. A year later salaries will be increased by 0.4 per cent.
The agreement covers two years with an option to extend it for a third year. This will be decided in June 2015, after the parliamentary elections in April 2015 and the formation of a new government.
To support the settlement the Government promise to cut income tax by 1.5 per cent, which should compensate for inflation. The cut will not apply to those with an annual income of 100,000 euro or more.
Union confederations are recommending that their member unions support the agreement. The first reactions have been positive, though many unions will not formally make their decision on the central agreement for a few days yet.