The Industrial Union is calling for political industrial peace in the labour market: “Stable and predictable labour market policies will benefit both workers and employers”
The Industrial Union warns Petteri Orpo’s Government against making any decisions in the mid-term policy review session that will increase labour market instability, weaken the position of workers or further erode the sustainability of the General Government Fiscal Plan in its objectives regarding the spending limits session. The Industrial Union urges the government to instead focus on promoting stability, confidence and sustainable growth. Timo Nevaranta, the Union’s Head of Public Affairs, is calling for political industrial peace in the labour market.
“A three-year industrial peace has been reached in collective bargaining. Now it is up to the government to do its part. Political industrial peace must be guaranteed for the labour market. Above all, it means that the Government must refrain from new labour market impairments that are not included in the Government Programme. “Stable and predictable labour market policies will benefit both workers and employers,” Nevaranta states.
Business organisations and the Prime Minister’s party, the National Coalition Party, have publicly called for large tax cuts in the spending limits session in order to boost growth. The Industrial Union points out that for well over a decade, Finland has been trying to grow the economy by easing the tax and contribution burden on companies. The removal of Kela contributions, several reductions in corporation taxes and the effects of the Competitiveness Agreement benefiting employers have not led to economic reform or significant growth. Yet the current government seems to be considering continuing along the same lines, even though there is no evidence of success. According to Nevaranta, it is time for the Government to acknowledge that the economic policy pursued so far has not produced the desired results.
“It’s time to admit that cutting taxes and contributions alone will not generate growth. We need more comprehensive economic policies that boost investment and support purchasing power,” says Nevaranta.
To strengthen the economy and employment, the Industrial Union is proposing growth measures based on the industrial policy strategy published in December 2024. It is particularly important to support continuous learning, R&D investment, smooth and predictable regulation and energy network investments that support the green transition.
Local agreement needs stricter control – Proposals for change also in board-level representation
The Industrial Union suggests reforms to the Government for strengthening the basic pillars of the Nordic labour market model, namely collective bargaining and workers’ opportunities to influence workplace issues. In the spending limits session, the Government has the opportunity to focus its attention on two issues in particular that call for decision-making.
The Government’s reform of local agreement allows for the weakening of the terms of employment by making use of the possibilities of making other agreements in collective bargaining. Foreign workers are particularly vulnerable to weak local agreements.
The Industrial Union considers that the mechanisms for enforcing terms of employment introduced in the context of the reform remained inadequate. In the spending limits session, the Government must ensure that the authorities and trade unions have a real opportunity to enforce and intervene in abuses of local agreements.
“The authority’s supervisory resources must be significantly increased, sanctions must be tightened and trade unions must be given the opportunity to intervene in cases of injustice in local agreements,” Nevaranta says, highlighting the proposed changes.
The Government has announced that it will make reforms in the legislation on board-level representation in companies. The Industrial Union points out that companies do not even comply with existing legislation on board-level representation. For example, attempts have been made to circumvent this representation by means of extended steering committees that have no real influence on the company’s decision-making. Staff representatives have also not received the necessary training. The Industrial Union’s proposals aim to ensure genuine employee representation in company boards.
“Sanctions should follow for companies that fail to implement or try to circumvent board representation. Representation should be in a body that enables real participation in decision-making, not, for example, in an extended steering committee,” says Nevaranta.
Additional information:
Timo Nevaranta
Head of Public Affairs, Industrial Union
050 574 1430
The Industrial Union’s messages to the Government’s mid-term policy review session