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Majority of wage-earners join in

Incomes policy agreement approved

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A new comprehensive incomes policy agreement for Finland was signed on Friday 15 December 2000. The agreement covers about two million wage-earners, comprising some 90 per cent of Finnish employees. The new agreement was signed by all of the central employee confederations except AKAVA, which represents academically qualified professionals. Despite the failure of their parent organisation to sign, however, unions representing a large proportion of the AKAVA membership base have also negotiated collective agreements that are in line with the general agreement.

More than ten thousand employees organised under the Central Organisation of Finnish Trade Unions – SAK dockworkers, electricians in the energy sector and locomotive drivers will fall outside of the new accord for one year. The aviation and foodstuffs sectors also remain outside of the new deal, but these employees are covered by existing long-term agreements of broadly similar content. The coverage of the new agreement in the industries organised under SAK is as much as 97 per cent.

Of academically qualified professionals, nursery school teachers, librarians, psychologists, social workers, doctors and airline pilots declined to sign up to the new agreement. With the exception of workers in the insurance sector, the salaried employees' confederation STTK was broadly behind the new package.

The Board of SAK considers the new accords to be quite solid. While their general impact on costs will be about 3.1 per cent, the structure of the agreement ensures significantly higher increases in low-pay sectors with a majority of women workers. Increases for shopworkers, restaurant floor staff and textile industry workers, for example, will be about 3.7 per cent. The corresponding increases in industries with a majority of male workers will be about 2.8 per cent.

Employers hesitant

The industrial employers' confederation expressed some reluctance to proceed in the final stages of the negotiations, expressing worries that the dockworkers and key energy sector workers will remain outside of the agreement for one year. These workers are crucial to the smooth operation of industry in Finland. The willingness of the dockworkers to join in the agreement was undermined by news of redundancies in the Ports of Hamina and Kotka, where the jobs of some 30 employees are in jeopardy.

As existing agreements covering the dockworkers and energy sector electricians will continue to ensure freedom from industrial unrest until the beginning of 2002, the industrial employers' representatives were finally persuaded to sign an exceptionally broadly-based incomes policy agreement.

Leena Seretin

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