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Wed, 16 Sep, 2015 12:03:14 AM
FTimes – STT Report, Sep 16

Prime Minister Juha Sipilä on Tuesday said reducing holiday pay by half would only serve part of the government’s goal to reduce the unit cost of labour.

Sipilä was responding to an earlier report which claimed that labour market organisations were contemplating reducing the holiday pay by half.

The prime minster, however, said the government in his view would be happy to accept an alternative package, if the labour market organisations manage to agree on one.

He told reporters in parliament that he had not been in touch with labour market organisations.

Sipilä is also not aware of how seriously the organisations are looking for alternative means in place of the measures announced by the government.

“If such as an agreement is reached, we will obviously accept it with happiness as part of the overall package,” Sipilä said.

Reducing holiday pay by half, according to Sipilä, would be an effective measure, because it touches on almost all employees rather than, for instance, reducing the Sunday pay as proposed by the government.

Labour market organisations could agree amongst themselves on reduction of holiday pay, because it is outlined in collective bargaining agreements.

The government is set to reflect on these views during the government’s briefing on the tightening labour situation in parliament next week on September 23.

According to Sipilä, the proposal by the labour market organisations must be in place before this date.

The government earlier proposed various measures aimed at improving cost-competiveness which included provisions such as reducing Sunday pay, changing Epiphany and Ascension Day to unpaid holidays, among others.
 

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