Unions close to meeting SAK terms for Competitiveness Pact

The Executive Committee of Metalli already approved settlements in line with the Pact for its largest sectors on Friday 3 June, but these settlements must still be ratified by the union’s National Council.

Shortly before the Executive Committee of Metalli reached this decision, its counterpart at Service Union United (PAM) approved similar settlements in various sectors, including retail trading, tourism, catering and leisure services. Meeting on Friday morning, the Executive Board of SAK announced that approval of settlements in line with the Competitiveness Pact by Metalli and PAM would mean that the Pact had enough support to take effect.

Some other SAK-affiliated trade unions, including the Trade Union for the Public and Welfare Sectors (JHL), the Finnish Paper Workers’ Union and Industrial Union TEAM also approved negotiated settlements for their own industries this week.

Negotiations conducted for more than a year

Negotiations on the Competitiveness Pact were initiated in spring of last year following a demand by the Finnish government enjoining the national labour and employer confederations to conclude a social contract that would cut unit labour costs and thereby improve Finland’s relative economic competitiveness.

The national labour and employer confederations reached a negotiated settlement on a general labour market agreement or Competitiveness Pact on 29 February, and the unions and employers were given until the end of May to renegotiate their agreements.

Some national unions are nevertheless still completing their collective bargaining rounds. For example the Pro trade union affiliated to the Finnish Confederation of Professionals (STTK) has announced that it may wait until Monday 6 June before considering the outcome of negotiations.

The Finnish government has already announced its intention to withdraw a 1.5 billion euro programme of additional expenditure cuts and tax increases if the Competitiveness Pact is considered to have secured sufficiently broad coverage by next week. The government will also shelve its plans to weaken the legislation that protects terms and conditions of employment, and will reduce employee income taxes.