The so-called competitiveness pact is set to encompass roughly 91 per cent of wage earners in Finland after the Federation of Professionals and Managerial Staff (YTN), Service Sector Employers (Palta) and Trade Union Pro reached a tentative agreement on measures to reduce the unit labour costs of businesses in the information and communications technology sector yesterday evening.
The negotiations had dragged on mainly due to differences regarding the use of temporary workers.
Trade Union Pro estimates in a press release that approximately 25 per cent of the 16,000–18,000 workers in the sector are temporary workers. The agreement reached yesterday, it adds, will allow for the establishment of local guidelines for the use of temporary workers and make shop stewards better equipped to monitor the use of temporary workers.
- Construction sector finds agreement on competitiveness pact (26 August, 2016)
- STTK: Competitiveness pact 1ppt short of coverage target (25 August, 2016)
“Some employers use temporary workers as regular workforce by chaining temporary contracts for several years,” says Anssi Vuorio, a sector chief at Trade Union Pro.
Jorma Malinen, the chairperson of Trade Union Pro, has urged policy-makers to stand by their word and introduce additional income tax concessions worth one hundred million euros. The Government of Prime Minister Juha Sipilä (Centre) has promised to adopt tax concessions worth 515 million euros if the coverage of the pact exceeds 90 per cent.
Ilkka Oksala, the head of working life at the Confederation of Finnish Industries (EK), reminds in a press release that the competitiveness pact is only one element of the ongoing effort to spur the economic recovery of Finland.
“It alone is not enough, however,” he states. “A number of other measures will be needed to strengthen the competitiveness of businesses, promote employment and enhance incentive effects.”
Aleksi Teivainen – HT
Photo: Antti Aimo-Koivisto – Lehtikuva
Source: Uusi Suomi