Finland Times

 

Ex-National Conciliator Juhani Salonius, Justice and Labour Minister Jari Lindström, Prime Minister Juha Sipilä and Finance Minister Alexander Stubb at a press conference in the Prime Minister's residence Kesäranta in Helsinki on Monday following the social agreement proposal. Photo – Lehtikuva.

The government on Monday presented its proposal for a new social agreement before labour market leaders. 

 

The proposal incorporates a provision for a five per cent increase in competitiveness with a view to reduce the labour cost by five per cent as well as to improve employees’ redundancy protection.

 

The proposal includes four objectives which labour organisations should have access to by August 21 at the latest. 

 

The objectives include achieving the government’s conditions regarding improved competitiveness and change in security. The government will assess the impact of the measures on competitiveness based on a measurement procedure agreed with the labour market organisations. The government and labour organisations will negotiate the precise objectives and agenda used for the duration of the agreement to the end of January 2017.

 

One of the main objectives is raising the employment rate to 72 per cent and increasing the number of people in employment by 110,000. 

 

EK's President and CEO Jyri Häkämies,KT Labour Market Director Markku Jalonen, SAK Chairman Lauri Lyly, Chairman of the Akava Sture Fjäder and STTK leader Antti Palola at a press conference following the proposal on Monday. Photo – Lehtikuva.

The government also seeks to achieve a situation where investment exceeds depreciation.

 

Achievement of these objectives calls for structural reforms, with a special emphasis on efforts to reform working life.

 

As expected, former national conciliator Juhani Salonius has been tapped to resolve negotiations for a conclusion to the social agreement.

 

Prime Minister Juha Sipilä at a press conference said the government does not intend to guide labour market leaders in their ways to achieve the objectives. 

 

One of the ways suggested is extending the working hours. Sipilä, however, leaves the bargaining to the labour organisations.

 

Sipilä, along with Finance Minister Alexander Stubb and Minister of Labour Jari Lindström, emphasised the government’s earnestness. “Now let’s discuss what can be done, rather than what not to do,” said the prime minister.

 

All have to be flexible and humble, Sipilä stressed at the press conference in Kesäranta.

 

Meanwhile, labour organisation leaders have affirmed that they are willing to consider the new social agreement.

 

Indeed, both the employers’ and salaried employees’ sides stated that the agreement is worth pursuing.

 

According to the chairperson of the Finnish Confederation of Salaried Employees (STTK), the proposed contract leans more heavily on employees than employers. Still, she emphasised negotiation along with the importance of bargaining.

 

The chairman of Akava, the Confederation of Unions for Professional and Managerial Staff, said employers need to take responsibility for objectives that aim to improve Finland’s competitiveness and employment.

 

A meeting of the government and labour organisations leaders on the proposal on Monday.Photo – Lehtikuva.

Confederation of Finnish Industries (Elinkeinoelämä) President and CEO Jyri Häkämies said they are committed to the process, because the potential cuts and tax increases would be extremely harmful.

 

If the social agreement is confirmed and its actions are measureable by March 2017, the government has announced that it will cancel corresponding contingent 1.5 billion dollar expenditures cuts and tax increases. It has also offered as a carrot tax cuts for the passing of the agreement.

 

Finland’s competitiveness has deteriorated in comparison to its key competitor countries. Increasing the employment rate to 72 per cent requires significant improvements to competitiveness in cooperation with social partners. 

 

In June, the government held discussions with the social partners. The aim was to assess their readiness to conclude a social contract.