Broad-based incomes talks to begin - situation seen as difficult

Seppo Riski

Lauri Ihalainen

print this

Finland’s main employers’ organisation, the Confederation of Finnish Industry (EK), decided on Wednesday to agree to talks on a centralised incomes agreement.
      However, at a meeting of its board on Wednesday, the EK insisted that it would not back down from its demands for moderate wage increases, and for changes in wage structures that would give individual companies greater independence in setting wage levels.
      Both EK and the union side characterised the starting point of the talks as exceptionally difficult.
     
The director of labour market relations at EK, Seppo Riski, says that there now seems to be more understanding on the union side of arguments for the changes called for by EK.
      Nevertheless, the general feeling is that the starting point for a broad-based agreement is not easy. Employers in the metals industry reportedly opposed embarking on a centralised agreement.
      Riski said that factors leading to the decision to endorse the process included discussions that EK has held recently with trade union and government representatives.
      However, both Riski and EK’s chairman of the board Juha Rantanen denied that there had been any pressure from the government.
     
Rantanen said that all sides understand the implications of increased competition caused by globalisation, and the needs for change caused by the ageing of the population.
      "Now the question is, how the pressure for change is to be channelled into concrete action, which opens the way for economic growth and employment", Rantanen said.
     
The decision by EK to opt for launching incomes talks was generally welcomed on the union side.
      Lauri Ihalainen, chairman of Finland’s largest trade union confederation, the mainly blue-collar Central Organisation of Finnish Trade Unions (SAK), was pleased that no preconditions were set for the launch of the talks.
      He also recognised that differences on the two sides were "greater than before the previous round".


Previously in HS International Edition:
  Employers' Fagernäs: Unions' wage demands cannot be accepted (8.10.04)
  Employers keep door open for incomes agreement, call on unions to reassess demands (7.10.2004)
  Trade Union confederations still want incomes talks (5.10.2004)
  Employers postpone launch of incomes talks - unions surprised (4.10.2004)

Links:
  SAK web site

Helsingin Sanomat