On November 18, the Industrial Union president Riku Aalto, and vice president Turja Lehtonen announced the union strike warning.

Unions demand ten per cent pay rise

20.11.2024

TEXT HEIKKI JOKINEN
PHOTO ANTTI HYVÄRINEN

The Industrial Union seeks a 10 per cent pay rise over the next two years. In the first year, the pay rise would be 6 per cent, in the second 4 per cent. To guaran­tee a real pay rise for the lower income earners, too, all wages and sala­ries should be raised in the first year by at least 150 euro per month, and at least 100 euro in the second year.

This is the common goal of member unions of the Cent­ral Orga­ni­sa­tion of Finnish Trade Unions (SAK). The unions went public with their demands in Novem­ber. The SAK unions will be nego­tia­ting their collec­tive agree­ments throug­hout the autumn and winter.

– Emplo­yees’ purc­ha­sing power has been decrea­sing drama­tically. The reason for this is the rapid and consi­de­rable rise in prices. Now, people get less with their pay than before. To correct this, we need a bigger pay rise than before, says Riku Aalto, presi­dent of the Industrial Union.

The rate of infla­tion has recently slowed down, but the gap in purc­ha­sing power still remains, Aalto says. The unions’ pay rise goal takes into account the previous loss of purc­ha­sing power and infla­tion during the next two years.

Emplo­yees’ purc­ha­sing power has been decrea­sing dramatically.

It is somet­hing of a new deve­lop­ment for the unions to disclose their pay rise demands in advance. It is also unusual that the SAK member unions seek to do so in unison. But now, unions want to respond to the inten­sive coor­di­na­tion of collec­tive bargai­ning emplo­yers have been carrying out for many years. Howe­ver, each union will conti­nue to nego­tiate their own collec­tive agree­ments independently.

The Finnish Food Workers’ Union SEL is one of the unions behind the pay rise demand.

– The pay rise for emplo­yees, in particu­lar for those with low inco­mes, goes directly towards consump­tion. This stimu­la­tion is badly needed in the Finnish economy and to boost emplo­y­ment. PM Orpo’s Govern­ment has nega­ti­vely affec­ted domes­tic demand by increa­sing insecu­rity in working life and cont­ri­bu­ting to unemplo­y­ment. Now, the compa­nies must bear respon­si­bi­lity and prevent the collapse of domes­tic consump­tion, says Veli-Matti Kunto­nen, SEL president.

 

Stag­na­ted negotiations

Collec­tive bargai­ning for the tech­no­logy industry has been going on since Septem­ber with no real progress.

– It has become clear that we can get no furt­her by nego­tia­ting, the Industrial Union presi­dent Riku Aalto says, explai­ning the reason behind the strike warning.

Aalto points out that the strike warning is not only down to disagree­ment on the pay rise issue.

– It is a ques­tion of the enti­rety of the package, not only pay. Nego­tia­tions had already stag­na­ted before we went public with our pay rise demands.

It has become clear that we can get no furt­her by negotiating.

The collec­tive agree­ment for the tech­no­logy industry expi­res at the end of Novem­ber. After that, stri­kes are both legal and possible until there is a new agreement.

Some Industrial Union collec­tive agree­ments for the chemical sector will expire at the end of the year. Nego­tia­tions began in Octo­ber and are still ongoing.

In the mecha­nical fore­stry sector the Union has this autumn renewed company speci­fic collec­tive agree­ments with the Metsä Group and Stora Enso. The content of the agree­ments has not been made public. In total, the union has some 110 agree­ments with compa­nies in the sector.