The Competitiveness Pact increases annual employee working time by 24 hours. There are no wage increases in 2017, liability for some employer contributions are transferred to the employee, and the holiday bonuses of public sector employees are temporarily reduced.
Further opportunities are provided for collective bargaining of terms and conditions of employment at the workplace and employees enjoy greater redundancy security.
The Competitiveness Pact aims to:
The Competitiveness Pact requires the Finnish government to:
Improvements to employee security in enterprise downsizing will benefit workers who are made redundant after working for an employer for at least five years. These regulations will bind employers with not less than 30 employees.
No special legislation will be introduced to regulate local collective bargaining. The trade unions and employers’ federations will instead negotiate new national collective agreement provisions to improve conditions for local collective bargaining. The topics covered by these negotiations will include:
The national labour and employer confederations recommend only the following statutory amendments in relation to local collective bargaining:
The collective bargaining round commencing in autumn 2017 will be conducted at industry level. The arrangements agreed in this bargaining round will boost growth and employment.
The national labour and employer confederations will propose the following measures to the national government:
The national labour and employer confederations call on the government to prepare amendments to labour legislation and earnings-related social security on a tripartite basis with the social partners.
The diagram specifies the effects of the Competitiveness Pact alone on employee purchasing power. Numerous other factors will also affect purchasing power, such as:
The rate of employment will depend on general economic growth.