Organised labour angered by government decision on old-age pensions

Ihalainen says move to raise retirement age is “serious departure from tripartite arrangements”

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Lauri Ihalainen, President of the Central Organisation of Finnish Trade Unions (SAK), feels that the government’s decision on Tuesday to raise the minimum age of old-age pensions to 65 is a serious breach of trust.
      Organised labour has come out against the increase in the pension age. SAK, the Finnish Confederation of Salaried Employees (STTK), and the Confederation of Unions for Professional and Managerial Staff (AKAVA) also complained about the way in which the government made the decision, which came without the customary consultation with the labour market organisations.
      “It is the first time in which the government makes unilateral decisions on such a significant issue of the work pension system and benefits, without listening to us”, Ihalainen says.
     
Ihalainen sees the move as a threat to the traditional tripartite system of cooperation, involving the government, the employers, and the unions.
      “This is the first big bump in the cooperation. ... In the history of the work pension system, it is a very serious departure. I hope that tripartite cooperation will not end with this, but it did leave quite a big gap in confidence in cooperation.”
      The government’s decision on Tuesday evening came as a surprise to the labour market organisations.
      Immediately on Wednesday morning, Ihalainen asked for an audience with Prime Minister Matti Vanhanen (Centre), and the meeting was arranged for the morning. The seriousness of the situation was understood, because the meeting was also attended by Minister of Finance Jyrki Katainen (Nat. Coalition Party).
     
Katainen met with leaders of the labour market organisations a week ago to ask about their possible willingness to accept structural changes in social security, but the results of the event were not impressive.
      Katainen did not reveal the government’s plans to raise the retirement age. This was confirmed by Lauri Lyly, one of the leaders of SAK. Tuesday evening’s decision on pensions came as a complete surprise to him. “This went completely against the normal rules of procedure”, he says.
     
STTK Secretary General Leila Kostiainen says that her organisation also had no advance warning of plans to raise the pension age.
      “The government programme has a commitment to cooperation with labour market organisations, but the organisations were not heard in this matter”, she says.
     
Vanhanen said in Parliament on Wednesday that he knew that there would be opposition to raising the pension age.
      “It was to be expected that if we asked anyone in advance about the matter, hands would not be raised as an indication of support”, he said.


Previously in HS International Edition:
  Government decides on gradual raising of minimum age for old-age pension to 65 (25.2.2009)

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