Two labour union confederations want wage hikes of three percent

Construction workers reportedly dropping out of incomes contract process

Leif Fagernäs

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Two trade union confederations, the Confederation for Unions for Academic Professionals in Finland (AKAVA) and the Finnish Confederation of Salaried Employees (STTK) have set as their target a three percent increase in pay for next year and 2.7 percent in 2006.
      The Confederation of Finnish Industry (EK) promptly rejected the demand, saying that it would erode Finland’s international competitiveness.
      Meanwhile, the Finnish Construction Trade Union is reportedly pulling out of the talks aimed at a broad-based incomes agreement.
     
The demands set by AKAVA and STTK were one percentage point lower than two years ago, but EK still feels that they are too high.
      EK Director-General Leif Fagernäs calculates that they would raise labour costs at least 3.9%, compared with the other countries of the euro zone where the increase is an average 2.2-2.4%.
      "Such a level would have a deteriorating effect on competitiveness and problematic consequences for employment. How could this fit in with the government’s idea that a very modest pay increase could lead to tax cuts?" Fagernäs asked.
     
The STTK model calls for a 2.3% overall increase next year with an additional 0.3% for fields dominated by women, and 0.4% for distribution among the individual unions in negotiations to be held after the main incomes talks. In 2006 the overall increase would be 2.3%, in addition to supplements of 0.2% each for the women’s professions and for distribution among the individual unions.
      STTK wants the focus of tax cuts to be on those with middle incomes.
     
Under AKAVA’s model the central organisations would only agree on the cost impact of the pay hikes. The actual distribution of the increases would be worked out in separate talks among unions representing the various fields.
      AKAVA wants tax cuts of one percentage point at all income levels.
     
The Central Organisation of Finnish Trade Unions (SAK) decided on Wednesday to postpone its decision on wage demands until Thursday because of a lack of progress in the incomes talks on the issue of responsibility for the wages of subcontractors.
     
According to a report in the financial daily Kauppalehti, the Finnish Construction Trade Union has decided to opt out of the broad-based incomes agreement.
      Kauppalehti writes that the construction business is doing well at the moment, and the union believes that it can secure a better wage deal on its own.
      In September Matti Harjuniemi, who will take over the post of chairman of the union, called for pay hikes of 4-4.5%.


Previously in HS International Edition:
  Union leaders slam paper industry for hurting incomes talks (24.11.2004)
  Paper industry withdraws from centralised incomes talks (23.11.04)

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