Employers bury hopes for framework pay deal

Confederation of Finnish Industries withdraws from talks after they are made public

Eeva-Liisa Inkeroinen

Lauri Lyly

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On Thursday the Confederation of Finnish Industries (EK) broke off the talks on a framework for pay increases after the negotiations were made public.
     
The framework means a contract on economic policy aimed at promoting employment.
      The aim would be to reach a common agreement on possible pay hikes, based on a framework agreed upon by the central organisations.
      The government might have been willing to refrain from increases in income taxes if an agreement had been reached.
      First EK director Eeva-Liisa Inkeroinen cancelled a meeting that had been scheduled for Thursday afternoon.
      Later in the afternoon she issued a communiqué, saying that the discussions had come to an end.
     
The official reason for the situation is the recent ”faltering of labour peace”. A threat of strike action has recently been used at least by the Union of Salaried Employees, the Finnish Aviation Union, the Trade Union SUORA, and the Federation of Special Service and Clerical Employees ERTO.
      ”The boundary disputes and oversized salary requirements demanded by certain trade unions are inappropriate in the current economic situation that is the worst on record”, Inkeroinen argued.
      ”Under the circumstances it is useless to continue these discussions”, she added.
     
The announcement came immediately after the matter was made public.
      Moreover, news about a collective framework alerted the industrial employers' organisations in Helsinki’s Eteläranta.
      For example the Federation of Finnish Technology Industries denied that any such framework had been under way, while EK had also previously expressed its unwillingness to interfere in the old collective agreement.
     
In EK’s view, all pay settlements should be made in line with the agreement made by the Finnish Technology Industries.
      In other words all potential pay rises should be 0.5 per cent maximum. In some fields there are no possibilities to give any pay rises whatsoever. The employee organisations did not accept this policy line.
      Lauri Lyly, the President of the Central Organisation of Finnish Trade Unions (SAK), expressed his disappointment with EK’s communiqué without delay:
      ”Today it would be perhaps more important than ever for both employees and employers to reach a collective agreement that would stabilize our economy and promote employment.”
      ”Obviously EK is not able to take the responsibility”, Lyly charged, adding that he fears that the negotiations on collective bargaining will now become more difficult.


Previously in HS International Edition:
  Labour market organisations seek framework agreement (10.12.2009)

Links:
  Trade Union SUORA
  Federation of Special Service and Clerical Employees ERTO
  Federation of Finnish Technology Industries
  Central Organisation of Finnish Trade Unions (SAK)
  Confederation of Finnish Industries, EK
  Union of Salaried Employees
  Finnish Aviation Union

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