Archive

Helsinki (09.11.2011/edited 09.11.2011 - Timo-Erkki Heino*) For a long time after World War II and up until the mid-1990s Finland was often described as "a moderate society". But then came an abrupt change. Income inequalities, which had slowly been diminishing during this period, started to increase rapidly.

Before the mid-1990s the incomes of the CEOs of Finland's biggest companies from ordinary employees averaged 14 times the average income of the workers at the same companies. After 1995 the CEO income averaged 31 times that of the workers. If the mobile-phone company Nokia, by far the biggest and one of the most international of the Finnish companies, is included, the incomes of the CEOs averaged 110 times the income of the workers.

Helsinki (05.11.2011) "According to the results presented in this paper, it is clear that there has been a trend-like decline in the labour share in most major OECD countries at an unchanged rate of unemployment", Pekka Sauramo writes in a new study, published recently by the Labour Institute for Economic Research.

"The interpretation of this kind of decline is not straightforward, but it is highly likely due, at least partly, to the weakened bargaining power of labour", Sauramo concludes.

Helsinki (27.10.2011 - Juhani Artto) On 26 October, the union confederation STTK drew attention once again to how slowly the gender pay gap is being narrowed and how much still remains to be done to eliminate it. The timing for this reminder was not chosen randomly but consciously.

On 26 October, 82 per cent of this year had passed and in Finland, on average, women earn 82 per cent of men's wages and salaries. And so STTK decided it was an opportune moment to generate a bit of publicity for a worthy cause by declaring on 26 October "no more pay for women this year". Media publicity was guaranteed.

STTK's lawyer Anja Lahermaa makes it very clear that equal pay goals and other equality issues must receive far greater attention at the bargaining tables than has been the case up until now. She is responsible for equality issues at the STTK.

Helsinki (21.10.2011 - Juhani Artto) About 30,000 salaried and wage employees at 37 technology industry companies began a strike 6 a.m. on Friday. The proposal put forward by the National Conciliator, Esa Lonka, was rejected by both the employers and the three unions representing the employees. The unions involved in the dispute are the private sector salaried employees' union Pro, the Metalworkers' Union and the Electrical Workers' Union. 

The major stumbling block was the pay structure presented by the National Conciliator. The Metalworkers' Union wants a solution whereby a large part of the pay rise awards translate as equal amounts of cents for all with the locally negotiable share of the pay rises remaining minimal. In his statement Pro's President Antti Rinne says that the proposal did not guarantee equal minimum pay rises to all and that too large a share of the pay rises was left at the employers discretion.

Helsinki (14.10.2011 - Juhani Artto) For the first time in four years the labour market confederations agreed on Thursday to a centralized collective agreement. Economists belonging to the confederations expect the 25-month agreement to slightly improve the purchasing power of wage and salary earners. 

The signatory parties are the union confederations Akava, SAK and STTK and the Confederation of Finnish Industries and the employer organs of the State, municipalities and the Lutheran church.

The agreement includes two pay rises (2.4 per cent and 1.9 per cent), a EUR 150 lump sum and several changes in working life regulations. In addition, the government has promised to make the agreement more attractive by tax cuts for both employees and companies together with a few other measures.

Helsinki (05.10.2011 - Juhani Artto) Negotiations for a comprehensive income policy agreement ended on Tuesday after failure to reach agreement on pay rises. The two employer confederations (Confederation of Finnish Industries EK and Local Government Employers KT) offered 2.4 per cent for the first 13 months and 1.9 per cent for the following 12 months. 

The union confederations SAK and STTK turned down the proposal as too low. The third union confederation Akava would have liked to continue the bargaining process and wait and see what kind of tax cuts Prime Minister Jyrki Katainen would promise to smoothen the path towards a confederation level agreement.

After SAK's and STTK's rejection EK's Director General Mikko Pukkinen stated that EK will not make any new offer and that the confederation level negotiations are now over. In practice, this means that collective bargaining will go on between the sector-based labour market parties i.e. between individual trade unions and the employer organizations in various industries.

Helsinki (05.10.2011 - Juhani Artto) Over 32,000 salaried and wage employees in the metal industry are ready to begin a two and a half week strike on 21 October if a new collective agreement cannot be reached prior to that date.

The trade union of private sector salaried employees Pro, the Metalworkers' Union and the Electrical Workers' Union announced on Tuesday of their intention to go on strike at 44 companies in the technology industry. Over 32,000 salaried and wage employees will take part in the strike from 21 October to 7 November if the parties fail to reach new collective agreements.

The threat of industrial action is designed to exert further pressure in an effort to realise the common goals of the unions. The latter are aiming at a one and a half year agreement during which there would be a two-stage pay rise. The first of these would mean an increase of EUR0.67 per hour or EUR110 per month.

For employees in the higher pay bracket the rise should be at least 4 per cent. And the second pay rise would boost wages and salaries by EUR 0.34 per hour or EUR 60 per month – or an increase of 2 per cent at least.

Helsinki (30.09.2011 - Juhani Artto) The Finnish six-party coalition government is taking an ambitious stance towards youth unemployment. The goal is to get rid of it! This has been clearly outlined in the government programme and its implementation was launched last Monday, when the "youth social guarantee" task force was officially named and given wings.

The promise or guarantee is to offer every young person below 25 years of age and every recent graduate below 30 years of age, either a job, place to study, apprenticeship or rehabilitation. And the aim is for this to happen within three months from the beginning of the unemployment. The system should be functioning properly and smoothly by 2013.

Helsinki (28.09.2011 - Juhani Artto) All three Finnish union confederations - Akava, SAK and STTK - oppose the government's plan to cut compensation to employees who opt for job alternation leave. The government intends to cut the alternation leave compensation by 10 to 20 per cent from its present level. Employees on job alternation leave are entitled to compensation of anything between 70 - 80 per cent of unemployment benefit.

The system of job alternation leave was established in 1996 and made permanent a few years ago.

To date thousands of employees have availed of the scheme of job alternation leave annually. Last year over 17,000 took the opportunity. The scheme was most popular among employees, organized in the STTK unions. In the year 2010 about 1.3 per cent of their rank and file members were on job alternation leave.

Helsinki (26.09.2011 - Juhani Artto) The Finnish Electrical workers' union is suing the Polish company Elektrobudowa for unpaid wages, overtime compensation and holiday pay and unpaid compensation for expenses.

The claim amounts to over EUR 2.7 million which has accrued from January 2009 to May 2011 at the construction site of the Olkiluoto nuclear power plant. The claim concerns 115 Polish electricians who have joined the Finnish union.

According to the union's magazine Vasama, the electricians have been paid on average only EUR8 to EUR13 per hour although the minimum wage is EUR15.03 per hour. The minimum is defined in the collective agreement for electricians' work.