The 25-month agreement
between labour market confederations will raise
salary earners' purchasing power
Helsinki (14.10.2011 - Juhani Artto) For the first time in four years the
labour market confederations agreed on Thursday to a centralized collective
agreement. Economists belonging to the confederations expect the 25-month
agreement to slightly improve the purchasing power of wage and salary
The signatory parties are the union confederations Akava, SAK and STTK and
the Confederation of Finnish Industries and the employer organs of the
State, municipalities and the Lutheran church.
The agreement includes two pay rises (2.4 per cent and 1.9 per cent), a EUR
150 lump sum and several changes in working life regulations. In addition,
the government has promised to make the agreement more attractive by tax
cuts for both employees and companies together with a few other measures.
So now, the ultimate fate of the agreement rests with the unions and
employer organizations. The agreement will not come into effect unless a
substantial proportion of the national unions and their opposite numbers
from the employer
organizations can agree on sector based collective agreements, respecting
framework set up by the confederations. Rejecting this framework would mean
losing out on tax cuts and other measures promised by the government as well
as putting at risk the concessions made by the employers during the
Presidents of the union confederations - SAK's Lauri Lyly, STTK's Mikko
Mäenpää and Akava's Sture Fjäder – place much emphasis on two facets in
particular, namely, the increase in purchasing power and the qualitative
improvements of working
life, that the agreement offers.
The signatory parties will sum up the results of the sector based
on November 25. If the framework agreement is largely approved it will then
into effect leaving the onus on the government to do its duty and carry
through with its promises to the labour market confederations.