Finland Times

 

Päivi Niemi-Laine, Chairman of the Trade Union for the Public and Welfare Sectors (JHL). Photo Lehtikuva.

Municipality employees have threatened to avoid signing a competitiveness agreement if the government does not remove any further budget cuts affecting municipalities from the next year’s budget proposal, reported the Finnish language newspaper consortium Lännen Media.

 

Unions representing municipal employees met on Monday with Finance Minister Petteri Orpo. 

 

Trade Union for the Public and Welfare Sectors (JHL) Chairman Päivi Niemi-Laine said new meetings have not yet been agreed upon, but the ball is now in the government’s court.

 

A joint statement issued by the labour unions representing municipal employees said signing the competitiveness agreement on Monday will be difficult if no solution is found for municipal budgets beforehand.

 

“They are aware of what we are asking for. Some kind of rapprochement with regards to [Monday’s] negotiations has taken place, but we wish to know the government’s final position before making any pronouncements,” Niemi-Laine told the Finnish news agency STT.

 

Trade Union of Education (OAJ) Chairman Olli Luukkainen waited until Wednesday morning for the government to announce their views on the budget discussions. Reportedly, the government has not responded to the unions.

 

“We have booked Monday of next week for the signing ceremony for the municipal sector competitiveness agreement. I think it’s very difficult to put my name on that [agreement] if this matter is not resolved,” Luukkainen told STT.

 

“In our view, the finance ministry’s proposal contains more cuts in addition to the ones already stated in the competitiveness agreement,” Luukkainen said.

 

Municipal tax revenue will be reduced when a bigger slice of health insurance payments is transferred to the employer’s responsibility. The fee is deductible from municipal taxes. There is also concern that the extension of working hours will translate to the reduction of personnel in practice.

 

On the employee side, the municipal sector is calculated to generate tax revenue losses of around 384 million euros. According to the unions, the sum corresponds to the average annual salary and expenses of about 8,000 municipal employees and office workers. 

 

Finnish Union of Practical Nurses (Super) Chair Silja Paavola is prepared to give the government time to reflect.

 

“I would imagine that the government has a lot to do with the budget. I would give them a little peace and quiet to do that work,” Paavola said.