Finnish medium-sized technology firms widely recognise that freezing wages for another year would reduce the work motivation of employees but remind that the room for wage increases is very limited, reports Kauppalehti.
The export-oriented technology firms surveyed by the newspaper indicated their willingness to agree on wage increases of 0.4–0.7 per cent.
The firms warned that raising wages by more than one per cent would especially erode the competitiveness of businesses that derive the majority of their revenues from exports. Any disruptions to production, they added, would also increase the risk of losing export orders to rival companies.
Juha Mäkitalo, the chief executive of Finn-Power, a manufacturer of sheet metal processing machinery that is about to re-locate its production facility from Kauhava to Seinäjoki, also pointed out that the prices of raw materials have spiked by almost 33 per cent over a short period of time.
“Earlier wage moderation has been helpful. It’ll also continue being an important competitive asset for us relative to, for example, our German competitors,” he commented to Kauppalehti.
Aleksi Teivainen – HT
Photo: Mikko Stig – Lehtikuva
Source: Uusi Suomi