What would constitute satisfactory and acceptable bargaining results? We asked Jouni Riskilä, who is the Chairman of the General Council of SAK and the President of the largest trade union in Finland, the Municipal Sector Trade Union, KTV.

- "Pay rises will be in focus, as a means of increasing the purchasing power of those who are in employment. But pay rises should be measured in such a way that the Government would be encouraged to reduce taxes next year, particularly for those on low pay."

Jouni Riskilä also mentions the need for more time being allowed, to shop stewards and other activists, for union work, and the need for increasing their rights and for improving their pay. Riskilä says that bargaining on a local level, a method which is currently being implemented much more frequently, will not be sustainable if the employees' side is not to be given equal opportunities with the employers' side, for the representation of their interests.

The current incomes policy, which has now been in force in Finland for the last four years, has produced over 200,000 new jobs. How will local authorities manage in these changed circumstances, now that they will have to participate in the union level bargaining round? Are public services under threat Mr Riskilä, or will public services even be available?

- "It is true that both the extent and the availability of public services will depend on the results of the union bargaining round. If pay rises exceed the limit which is considered to be acceptable by the Government, it will tighten its financial policy. If this happens, many local authorities may come to experience difficulties in their ability to provide services. It is characteristic of the current situation that, according to the Municipal Federation, 82 local authorities are planning to raise the municipal tax rate in their respective areas in the coming year, whilst a mere 15 authorities intend to lower it."

Mr Riskilä is of the opinion that the provision of municipal services would best be secured if pay rises were scaled according to national productivity and if the target for inflation was taken into account. Additionally, tax reductions should not be too extensive, since that would reduce the local authority income. The Government must remember though, that it has promised that local authorities will be fully compensated for any loss of revenue which is caused by cuts in taxation.

The General Council of SAK had a central role to play in the incomes policy negotiations, but it will not this time be in a similar key position during the union bargaining round, according to Mr Riskilä. He continued by saying that hopefully SAK will however be able to coordinate some elements of the union level agreements, for example the size of any pay rises and the period of the agreements.