New agreements reached for over 1 million workers

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In late January 2000, the social partners in Finland's banking sector concluded a one-year collective agreement providing for a 3.1% pay increase, in line with the trend set by the metalworking sector. A deal was also reached for most municipal and state employees, and by early February 2000 over 1 million workers were covered by a new collective agreement in the sectoral bargaining round.

In 2000, collective bargaining in Finland is occurring at sector level, as a central incomes policy agreement proved impossible to reach (FI9910124N). A trend-setting agreement was concluded in metalworking on 16 January (FI0001133F) and on 31 January, the Financial Sector Union (Rahoitus- ja erityisalojen ammattilaiset, SUORA) and the Bank Employers' Association (Pankkialan työnantajaliitto, PATO) concluded a new one-year collective agreement, which will increase wage costs by 3.1%, in line with the metalworking deal. Bank employees had threatened to put into effect a limited payment-transfer boycott, but this was cancelled at the last minute. In early February, a draft agreement was reached for most municipal and state employees, which will most likely be approved. Over 1 million workers - out of a total of 1,969,000 - are now covered by the new agreements.

After the metalworking agreement, settlements have been reached at a rapid rate. Of the large sectors, only a few are still without an agreement: transportation, the forest products industry, the food industry, the chemicals industry, navigation, and the power plant sector. The negotiations between the Finnish Transport Workers' Union (Auto- ja kuljetusalan liitto, AKT) and the corresponding employers' organisations are still at the initial phase. The employers were expected to make a wage offer by 10 February, when the AKT board was to meet.

In the paper industry - a key export sector - the employers' organisation has proposed a three-year agreement with an annual wage cost increase of 3.1%. The Paper Workers' Union (Paperiliitto) has rejected this offer, and negotiations continue. The deadline for the negotiations was 17 February, when an extraordinary meeting of the union's council was due to be held. In the event that no results are achieved by then, the union is likely to issue a strike warning. According to the latest estimates, wage issues are not holding back the progress of the negotiations so much as "qualitative" matters concerning the use of outside labour, a ban on lay-offs, working time, and performance- and result-related bonus systems. The use of outside labour has damaged relations for a long time and has led to strike action in previous years (FI9709132F). As to a lay-off ban, the union is attempting to oblige employers to offer training instead of lay-offs, as occurs in Sweden, for example. The employers consider that the right to lay off workers is on a par with the right to strike, but the trade union sees this as a wrong interpretation. Further, the employees are seeking a cut in working time, a proposition that has been flatly rejected by the employers. As regards performance- and result-related bonus systems, the union wants these to be negotiated with employers. The employers have yielded on this question to the extent that they are prepared to discuss the systems with employees within the framework of the Cooperation Act. The decisions, however, would be made by the employer.

A settlement for the chemicals industry is being delayed by disagreement concerning working time. The Chemical Industry Federation of Finland (Kemianteollisuus) has not been willing even to discuss the matter. According to the Chemical Workers' Union (Kemianliitto), an agreement will not be reached without working time cuts, and the union is prepared to go on strike in order to achieve this goal. The negotiations could be continued until 17 February, when the union board will meet. Further action will be decided on then, if an agreement has not been reached.

In the navigation sector, the negotiations are still at the midway stage and it is expected that a deal will be achieved. In the case of the ships' officers, the situation is exceptional, because both the employers and the employees are considering joint measures in order to avert the threat of ships being "flagged out" - ie staffed using foreign crews in place of Finnish ones - due to EU competition regulations.

The situation in the food industry has been aggravated by the demand of the Finnish Food and Drink Industries Federation (Elintarviketeollisuusliitto) for a 50-hour working week in the high season, when a longer day would be worked, counterbalanced over the course of the year by shorter working time during quieter periods. According to sources, it is believed that an agreement will be reached despite the present difference of views. The deadline was the union board meeting on 24 February.

The issues in the power plant workers were starting to be thrashed out in earnest in early February, because the present agreement was due to end on 15 February.