Local economical crises should be prevented

While municipalities have been able to improve the efficiency of their services, at the same time the government has burden new responsibilities for municipal administrations and its worker (in Finnish, toimihenkilö). This has caused the situation that even municipalities are able to reduce their costs by making their services more efficient, their economical or economic (In Finnish talous) situation is getting worst due to these new responsibilities.

Productivity can be raised to the certain level, but that will not bring the solution for the municipal economical crisis. The solution is neither that functions are transferred to another producer. Tax-funded public services are most likely secure the welfare of citizens in different areas equally. Privately produced services should be used only to supplement the already operating services.

The chairman of Jyty, the Finnish federation of public and private sector employees (in Finnish: palkansaaja), has warned that local government are heading in crisis, which will endanger basic welfare services. There will be most probably heavy shutdowns in many locations.

As the government program states, the municipal policy must be guaranteed equal and quality services throughout the country. The government should now break the old role and together with the municipalities find the ways to address gaps in current services and development the existing resources. It will be challenging, but it might be the only way to ensure the services.

Trade union’s view for the new governmental program

According to STTK, one of the three trade union (in Finnish: ay-liike) confederations in Finland, the key priorities of the new government program are related to fiscal sustainability of national economy and instability caused by euro-zone countries.

STTK is happy with the government’s decisions not to tighten the income taxation of salary earnings. It is the right signal in terms of the employment and purchasing power, and correlates with the goals of STTK. Tax solutions related to the capital taxation are justified by the world economical situation.

However, securing the tax income for the government is crucial in order to keep health facilities and other vital municipal services on a high level of quality and comprehensive manner to all citizens. At the same time, more security should be provided to employers working in these fields: that is essential in terms of employment.

The main task of the current government is, according to STTK, to boost the economic growth and employment. Effective actions to lessen youth and long-term unemployment are necessary. Also the resources for active labor market policies must be enabled. Government should take measures to extend working lives, improve young people's attachment to work, and to prevent work related disabilities.

One of the publicly visible actions in governmental program is to campaign against the grey economy (In Finnish talous). STTK will participate on this campaign also. The campaign will be visible in outdoor advertisements, in police cars and on the Internet in the autumn 2012.

Basic unemployment allowance and the labor market will rise by a hundred dollars per month beginning of next year. The increase also reflects in the earnings-related allowances. This is the government’s way to reduce social inequalities, and therefore is fully supported.

According to STTK, the annual savings and corridor negotiations agreed will ensure a sustainable economic policy. The global economy and the development of the European Union require agility in decision-making.

Municipal consolidations from employer’s side

The consolidation of municipalities in Finland is starting to be everyday news. From big to small, every municipality seems to find a reason to join with neighboring municipalities. Mostly the reason is because savings are seen in merging the municipal administrations, but what will happen to the municipality administrative worker (in Finnish, toimihenkilö) during those consolidations?

At 2005, the government of Finland launched the Best Project (Paras-projekti). The aim of the project was to reform the municipal service structure. Consolidations of municipalities were recognized part of this program. The personnel of municipalities agreed on this project and supported it, which granted them the five year protection against dismissal in the case of any consolidation of municipalities.

The Best Project will end in 2012, but obviously consolidations of municipalities will still happen after that. The trade union of municipal workers has argued that it would be even to have the same five year protection against dismissal also in the consolidations happening after the 2012.

As in any occupation, it is crucial that the job security is maintained. Municipal employment issues are negotiated together with employees and employers' organization, and it is essential that the employees (in Finnish: palkansaaja) remain in spite of the so-called new arrangements.

The other subject of negotiations in the moment of consolidation of municipalities is the salary. When two or more municipalities are combined, the salary differences of similar positions in different municipalities might be considerable. In these cases, the combined municipalities must agree on the harmonization of wages, and the harmonization cannot take a very long time. The same applies to differences in personal knowledge-based bonus systems: they should be co-ordinated.

Public economy at the times of uncertainty

Economy is an interesting topic, and when it comes to public economy, everyone, and I do mean everyone, seems to have an opinion of how the government money should be used.

The current moment is alarming. Governments in Europe are taking more and more debt in order to keep public services available. Some like Greece are sinking under their depth, but even Finland, which public economy has been well taken care for, there is a need to get more debt for supporting government’s services.

The most common way for any government to react in this situation is to take more debt or make cuttings in public sector services. These both might not be the most recommended things to do in the uncertain economic situation. Public sector cuts can reduce domestic demand and weaken employment possibilities. More debt will just deepen the economic situation of the country and healing will take even more time.

Many specialists do not see the cuts of public services as the solution for this situation. For example STTK, one of the three trade union (in Finnish: ay-liike) confederations in Finland, have set the statement where they argue that public sector should stop taking more debt; instead, government should vigorously build a longer-term program, with the aim of balancing the public economy, as well as promoting growth and employment. This governmental program should include the labor market solution that could increase stability and predictability of the working life and have concrete action points for extending careers in all its various stages.

There are a couple of things making these goals hard to reach. For example extending careers is not in the hands of government only: the studies have shown that most problematic for the aims to extend careers are the attitudes of employers. But there are issues the government can straightforwardly affect, like delays the cuttings of public sector and delays of tax increases. If these two would be done, it will support domestic employment and economic growth in a situation where economic growth seems to be waning. These would also ensure the citizens’ purchasing power, business competitiveness and employment.

The marriage between work and know-how

The requirements of working life (in Finnish, työelämä) have changed drastically over the last twenty years. Previously long term engagement with one employee was valued and supported by the employee and employer; nowadays knowhow and continuous development at work are preferred.

This change in the attitude is strongly related to changes in word economy and world market. The technological development has been rapid, and it has created new economic opportunities but also destroyed old ones. The world has transformed from local to global, which has updated the competition at the global level. In this new environment, old skills and old ways to do things need to be re-evaluated.

The change can be seen concentrically in constant layoffs and continuing changes in business plans. For employers, who became accustomed to old ways valuing the long term employee-employer relationship, this new model of running the business have come as a surprise. There are many sad stories of employers getting fired and losing all the meaning in their life. Probably the saddest thing for them is the fact that this trend is here to stay. In the world changing this fast nobody can unfortunately to expect, that one education and one skill will carry through the whole career. The modern employer must study and update his skills all the time.

Unfortunately, many times the employee expects that this development and education is done in employer’s free time and by his own will. Not many employers provide time for their employees to research and development their knowhow. This probably is also due to the fast changes: even the employer has no time to think what it really takes to survive in this changing word.

Many Finnish trade unions have brought up this question and enrolled it to their agenda. Trade unions have long perspective to working life in Finland, and they see the development of employer’s knowhow crucial for the whole Finnish economy. STTK, one of the three trade union confederations in Finland founded in 1946, has mentioned that their new goal is to create the new marriage between work and knowhow, whereas the old marriage was between work and well-being.

The changing world requires new ways to think, for employers, employees and trade unions. The change is never easy, but the only way is to survive.

STTK supports jobs and growth strategy

The Finnish Confederation of Professionals STTK, one of the three trade union confederations in Finland, calls for governmental level agenda for sustainable economic growth and employment. These two are seen vital in order to ensure labor market’s (in Finnish, työmarkkinat) sustainability and functionality.

The central task of this agenda should be to define the economic priorities, and to support the national level competitiveness of companies and purchasing power of wage earners. The program should last for at least the entire life cycle of the current government.

Finnish trade unions have prepared together their agenda for government negations. This agenda includes actions that are meant to response the challenges of the current socio-economic situation. To pick one of the topics as an example, extension of working lives are in the agenda.

In addition to this, all trade unions see that it is reasonable to try to calm the working environment. Constant changes cause uncertainty and feelings of insecure, which is not supporting the ideas of growth. Employers and unions should first find a consensus on how to develop this peace in work environment. In the middle of all structural changes it is necessary to look the causes of any industrial conflicts with new approach. Without this the system is in danger zone.

STTK survey 2011: a lack in employee representatives hinders local negotiations

According to a survey conducted by STTK, the Finnish Confederation of Salaried Employees, there is no lack of openings for employee (in Finnish: palkansaaja) representatives. Only 18 percent of respondents to the survey state that they would be prepared to take on employee representative responsibilities. At the same time, 90 percent of respondents that already are employee representatives state that they would be prepared to continue with such tasks. The Secretary General of STTK, Leila Kostiainen, says that the survey shows that the overall situation with employee representatives at workplaces is rather good with 80 percent of respondents stating that there is an employee representative or similar person at their company.

What worries Kostiainen, though, is that 16 percent have answered that there is no employee representative at their company. In the private sector, nearly every fourth workplace is missing such a position. Additionally, only about half of the respondents say that the work done by trade unions to develop and better salaries, working hours and the standard of working is visible at their company. Kostiainen raises the question of how these matters are agreed upon at such companies. STTK has emphasized that local negotiations can succeed only if both negotiating sides are balanced.

It’s difficult to extend local negotiations if there’s a lack of employee representatives or if they are not given the opportunity to do their work properly, states Kostiainen. According to the survey men, who represent 24 percent of the respondents, are more willing to be employee (in Finnish: palkansaaja) representatives than women, who represent 16 percent of the respondents. Young people are slightly more willing than people over 50 years of age. The size of a company or the sector the company is in does not seem to have an impact on whether a person is willing to be an employee representative or not.

Survey on European working hours provides input in Finnish discussion

Finnish confederate trade unions feel it is important to include international and European perspectives in discussion about working hours. There are obvious international trends in working hours and arrangements, and it is beneficial to recognize Finland’s situation in comparison to other countries. For this reason, confederate trade unions have arranged a workshop on the topic of working hours to look into Finnish and European working hours.

At the seminar, the Research Director of Eurofond, Greet Vermeylen, comprehensively presented the results for Finland and other EU member countries from the survey conducted by the foundation. The central sources of information for the foundation are the surveys it conducts: the European standard of living survey, the European standard of working survey and the corporate survey.

In the survey conducted by the foundation, topics that were covered were the length of working days, the different types of work time arrangements and how commonly used they each are, the use of work time, and how people balance work and private life. During the last decade, work times have diversified throughout Europe and also in Finland. At the same time, there are huge differences between different countries which are the result of both labor (in Finnish: työelämä) markets and cultural differences.

The information derived from the survey is a result of answers provided by citizens and employees, corporate human resources directors and employee (in Finnish: palkansaaja) representatives.

Trade unions participating “gray economy – black future” campaign

The police of Finland has started new campaign named “gray economy – black future” that encourages young people to reflect on the gray economy and its impact on their lives. The campaign aims to make it clear that each of us is the right person to combat against the gray economy. Finnish trade unions are participating the campaign as well.

The gray economy means that employer neglects the payments of statutory duties and social fees of employees (in Finnish: palkansaaja). Gray economy is also the abuse of social benefits, buying and selling pirate products, and in business, leaving the taxes and other statutory payments to be paid.

The campaign states that gray and black economy damage to both you and the society as a whole. When some of us don’t pay taxes and neglects other obligations, the collected tax revenue is considerably smaller. This will increase taxes and makes managing of publicly funded services harder, including street and road maintenance, health services, and school activities.
One of the campaign’s idea is to clarify, how the gray economy will affect to employee. Many young persons might not know, that undeclared work will not accrue a pension, or that the employer has not insured the workers against accidents. In gray economy, the sickness benefit and unemployment compensation are unknown.

The campaign states that everyday choices are many times more powerful eroding the gray economy than actions against criminal actions already taken place. The campaign has an informative web page, where quizzes about the subject can be made and a detective story to be read among the accurate info about the subject. There will be ads in radio and outdoor commercials promoting the campaign; the police’s and custom’s cars will be also labeled on the theme for the campaign time.
In addition to the Finnish Police force, participants of the campaign are the Ministry of Internal Affairs, the Ministry of Social Affairs and Health, the Ministry of Justice, Customs of Finland, Finnish Tax Administration, several trade unions like AKAVA, EK, SAK, STTK, PAM and Pardia, the Central Pension Security Institute of Finland, the Food Safety Authority of Finland Evira, the Financial Sector Federation of Finland, RT, the Finnish Transport and Logistics Federation SKAL, Federation of Finnish Enterprises, and Federal of Electrical and Telecommunications Contractors STUL.

Trade union want to have shorter strike notification times

The Finnish trade union Pro wants to have shorter strike notification times to Finland. Currently, the notification time in Finland is 14 days, whereas in EU it is 3 days and in seven member countries of EU, the notification time does not exist. Finland has the tightest notification times in European labor market (in Finnish, työmarkkina) standard.

Pro wants to have either the notification period to be reduced to a fair condition, or then have big sanctions to employers when they violate the employees’ right to strike. According to Pro, it is hard to follow 14 days notification time, since employers have used this time to infringe the right to strike. Pro members have been pressured to leave the union, to move upper positions and train outsiders to do their tasks.

For example Forest industries federation has repeatedly accused the staff strikes illegal. The collective agreement of paper industry officials expired on 04/01/2011. After that strikes have been legal. The strikes have enormous affect on companies. Problems pile up day by day, and to strike is more and more expensive for the employers. Due to shortage on the staff and the errors made by unqualified personnel start to accumulate, which is reflected to the quality of work.

According to Pro, in the moment of strike the employers have transferred the work abroad, brought person from abroad to work in Finland, and invited the summer workers to do the job of people on strike. The worst is, however, to put the pressure on individual officers mentally during the 14 days notification period.