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Incomes Policy Negotiations have now commenced

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Tripartite negotiations for centralised incomes policy bargaining began on Wednesday, 4th of October, in Helsinki. Each of the trade union central organisations, along with all the central organisations of the employers' federations, participated in the opening meeting as did Prime Minister Paavo Lipponen. The participants stated that a wide-ranging incomes policy solution for a minimum duration of two years was the prime aim for everyone involved.

The next meeting of this large tripartite negotiating body is due to take place in late October, and prior to this, proposals for the terms of the centralised agreement will be deliberated by the leaders of the central organisations. It is hoped that a centralised incomes policy solution will be reached by early November, as this would leave both the trade unions and the employers' federations some time to adapt the centralised agreement to each separate sector of industry. The signing of the incomes policy agreement has been scheduled for early December.

The employee side has not, to date, specified the pay increases which they will be seeking. The employers have already emphasised the need for an agreement on moderate pay increases, and at the present moment they appear to be looking for rises of some 1%. The employers are eager to remind the employee side that, next year, there will still be some rollover pay rises to come, which will be awarded on the basis of earlier agreements, and that these alone will amount to 2 or 3%. The employers however want to reserve some part of any pay increases to be agreed upon at a company level.

The employers have also further defined their demands. The Employers' Confederation of Service Industries, PT, is seeking an agreement which would stay in force until the autumn of 2003. However, it is unlikely that they will succeed in this as the largest trade union central organisation in Finland, SAK, has set a period of two years for this agreement. SAK may encounter difficulties in its attempts to have the centralised agreement accepted by all of the unions, due to the fact that some sectors of industry already have in place their own collective agreements on terms of employment and these will remain in force for several years to come. The Paperworkers' Union, for example, intends to negotiate on future pay rises on the basis of its existing agreement, which will remain in force until the end of January 2003.

The employers of the manufacturing and service sectors are opposed to any reductions in working time. SAK has demanded that the annual working time will be reduced by one working day, so that the Saturday immediately following Ascension Day will become a non-working day.

Leena Seretin

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