Unions step up pressure on government over proposed labour market reforms

Two of Finland’s largest trade union federations, SAK and STTK, have announced plans to stage a demonstration against the government’s proposed reform of labour market laws.

The protest is scheduled to take place in Helsinki’s Senate Square on Thursday 1 February.

The demonstration is a continuation of the campaign by workers’ unions against the government’s plans, which saw industrial action in November and December, and will coincide with a two-day strike by members of the Industrial Union as well as white-collar union Pro.

The timing of the demonstration and strike is no coincidence, as a bill aiming to restrict political strikes will be brought to parliament by the government in the middle of next month. The draft law also includes a second package of unemployment benefit cuts.

SAK chair Jarkko Eloranta told Yle that more unions may join the industrial action.

“The unions will announce industrial action at their own pace, if they organise any. We have no further comments at this stage,” Eloranta said.

The demonstration planned for 1 February marks the first collaboration by SAK and STTK against this government’s plans.

“Our aim is not to bring down the government or to be an extra-parliamentary opposition force, but to protest against the government’s programme on labour market laws and cuts to social security,” STTK chair Antti Palola said.

Petition handed to government minister

Separately, a petition organised by the Industrial Union has collected tens of thousands of signatures calling on PM Petteri Orpo‘s (NCP) government to reverse its planned reforms and cuts.

The union’s chair, Riku Aalto, handed the petition to Employment Minister Arto Satonen (NCP) at an event on Tuesday morning. The initiative was signed by over 27,000 members of the union, which represents workers in heavy and light industries.

The petition states that the government’s plans will weaken the position of workers in Finland and represents a great threat to the operations of Finnish companies.

Government plans ‘export model’ economy

Despite the opposition from unions, the government intends to push ahead with its labour market reforms and cuts to social benefits.

Employment minister Satonen met with social partners and the national mediator to discuss the terms of the so-called ‘export model’.

This model would mean that any wage increases in the export industry would set the ceiling for all other sectors of the Finnish economy. This has long been the tradition in Finland, but the government wants to enshrine it in law.

“There is a lot of work to be done, because at the moment there are only a few words about the model in the government programme. The doors are still open to proposals from the social partners. However, this export-led model is so important that the government cannot fail to act,” Satonen said.

Photo shows Employment Minister Arto Satonen.
Employment Minister Arto Satonen (NCP) held a meeting with unions on Tuesday to discuss the government’s plans. Image: Silja Viitala / Yle

He added that the government believes the proposal will safeguard Finland’s competitiveness, but his preference is for the model to be developed by mutual agreement with the unions and social partners.

“It would be a national failure if this is not taken forward,” Satonen stated.

The government plans to bring the bill to parliament in the autumn, with a view to the law entering into force by the end of this year.

However, there is widespread opposition to the plans among workers’ unions.

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