BREAKING NEWS: Broad-based incomes agreement reached early Monday afternoon

Contract to extend beyond next Parliamentary election

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The leaders of Finland’s main labour market organisations announced early Monday afternoon that they had reached agreement on a broad-based incomes contract.
      In the final stretch, the main trade union confederations and employers’ groups ironed out their differences on the amount and structure of upcoming wage hikes. The negotiators did not immediately give out details of the agreement.
      The settlement is to have a duration of about 2.5 years, extending it past the Parliamentary elections of 2007.
      The agreement went to the executive bodies of the trade union confederations for approval. The national government is also examining the content of the settlement to determine the level of tax cuts it will enact.
      Monday was set as a deadline, because the government and Parliament need time to pass necessary legislation on the income tax cuts that it has offered as an incentive for a moderate incomes agreement.
     
On the issue of wage structure, the two sides reached a compromise containing elements of the traditional model favoured by the Central Organisation of Finnish Trade Unions (SAK) and the Finnish Confederation of Salaried Employees (STTK), comprising a wage hikes involving set both sums of money and percentages. However, the settlement also includes a number of elements called for by the employers’ side.
      Leif Fagernäs, Director-General of the Confederation of Finnish Industry (EK), said that the employers’ side agreed to the compromise, as not all of the changes his organisation would want are possible to implement at once.
     
Earlier the two sides reached agreement on the issue of higher unemployment benefits for those who lose a job, and embark on training for new work.
      The benefits would be available for between 20 and 185 days, and would amount to 65% of the difference between the basic daily unemployment benefit and the daily wage. For those earning more than EUR 2,000 a month, the benefit would be only 37.5%.
      Previously it was agreed that an employee who has been given notice would be entitled to take between 5 and 20 days of paid leave for job interviews and training.


Previously in HS International Edition:
  Incomes talks: Blue collar workers SAK wants 3.1% pay hikes (26.11.2004)
  Two labour union confederations want wage hikes of three percent (25.11.2004

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