Union not opposing wage deferment proposal of Evox Rifa

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The Metalworkers’ Union is not taking issue with discussions being held between management and personnel at the capacitor manufacturer Evox Rifa on the deferment of paying wages. The union says that the discussions at the company’s Suomussalmi plant are taking place within the framework of the existing labour contract. The company’s management sharply denies that it is trying to persuade its personnel to work for free.
     
The company has proposed a system which would delay the payment of some of its wages until its cash flow situation improves.
      "Under no circumstances is this a question of unpaid work", said CEO Tuula Ylhäinen in an interview with the Finnish News Agency STT.
      In practice, the proposal would mean that employees would work on Saturdays until June, and that the wages for the extra work would be paid in a manner to be agreed upon separately. Similar arrangements were known to have taken place in connection with the recession of the 1990s.
      Currently the factory operates in three shifts, and there is only little work on weekends. Evox Rifa wants to increase production and to defer the costs in order to maximise output at a time of high demand.
     
Metalworkers’ Union President Erkki Vuorenmaa says that the union has not been contacted over the matter. Under the existing labour contract, it is possible to agree locally on deferring the payment of wages, which means that the matter is not in the hands of the union at this point.
      He adds that if the two sides do not agree, then the existing contract would be enforced to the letter.
      During the recession, there were agreements at some companies to defer the payment of wages to to avoid bankruptcy.
      Vuorenmaa notes that in those situations, the deferment of wages meant that employees were later paid exactly what was called for by the contract, plus interest.
      The deferment of wages involved a signed contract with specific dates, which guaranteed that the workers would be entitled back pay out of state wage guarantee funds if the company went under.


Previously in HS International Edition:
  Capacitor manufacturer Evox Rifa asks employees to work for free on Saturday (4.4.2006)

Helsingin Sanomat