The new labour market polices of the Confederation of Finnish Industries emphasize sector-specific collective agreements. This is a major change because Finland has a long tradition of centralized labour market agreements.

The Confederation of Finnish Industries (EK) set the following targets for the labour market policy: improved corporate competitiveness, greater productivity, increased employment and steady growth in purchasing power.

“Because of the spread of international operations, greater competition, the differing needs of sectors and companies, the centralized incomes policy negotiations do not provide an efficient labour market model these days,” says Eeva-Liisa Inkeroinen, EK’s Director of Industrial Relations.

“In a changing operating environment the one-format principle no longer works. Sectors and companies must be given wider scope to develop the terms and conditions of employment in a direction that will increase competitiveness, productivity and encouragement.”

Close to work and people

Inkeroinen says that the best knowledge about a company’s needs is at the workplace, which also comes face-to-face with customers and their needs. So the terms and conditions of employment must be determined close to people and close to the work.

“For example, working hours should be flexible in accordance with demand: when people are busy, they’ll do a longer day, and when it’s quieter, they’ll take time off. The salary should also be individualized and provide an incentive.”

EK’s policies have met with a conflicting response. There are no arguments with the basic objectives, but there has been a critical reaction to the abandoning of the incomes policy negotiations – even though many people do at the same time understand the need for change.

There is justifiable concern over how the moderation of the wage agreements can be guaranteed with a decentralized negotiation model. “Preparations for this are at present under way at EK,” Inkeroinen confirms.

Need for cooperation

Inkeroinen considers the labour market’s future to be bright, even though it will demand a considerable amount of work. “With change always comes uncertainty, but good cooperation between employers and the trade union movement has always been a resource for us,” Inkeroinen says.

“Cooperation will be needed at all levels in the future so that Finnish companies and Finnish work remain competitive. We need the aptitude for change and the courage to reform work.”

>> www.ek.fi

According to the Confederation
of Finnish Industries EK there is
no continuation for the old-style comprehensive income policy agreements in the future.
(Photo: Sami Perttilä)