In May 1999, the delegation representing small and medium-sized enterprises (SMEs) in the Confederation of Finnish Industry and Employers (TT) criticised the Finnish industrial relations system for being "rigid" at a time while the environment is changing rapidly. Trade unions see the criticism as unjustified, because opportunities for local collective bargaining have increased during the 1990s.
Download article in original language : FI9905106NFI.DOC
In May 1999, the delegation representing small and medium-sized enterprises (SMEs) in the Confederation of Finnish Industry and Employers (TT) criticised the Finnish industrial relations system for being "rigid" at a time while the environment is changing rapidly. Trade unions see the criticism as unjustified, because opportunities for local collective bargaining have increased during the 1990s.
In May 1999, the chair of the delegation representing small and medium-sized enterprises (SME s) in the Confederation of Finnish Industry and Employers (Teollisuuden Työnantajain Keskusliitto, TT), Jalo Paananen, severely criticised Finland's present industrial relations practice. In his opinion, Finnish SMEs are threatened not by international competition but by industrial relations policy. He claims that industrial relations practice is "rigid" , having been ossified at the level of the 1960s or 1970s, and that the change taking place in the world around is being ignored. "This was already evident in the negotiation process before the government programme [FI9904101F], when the tripartite system was seen as still being the only real model of operation. Even though the operational environment has changed at an accelerating pace, the labour market is still characterised by stagnation based on an old liturgy," he said in an magazine interview (TT vuosilehti 1/99).
However, Mr Paananen added that no-one wishes to abolish the role of the social partners and the right to conclude collective agreements. In his view, though, the social partners should clearly be responsible for their own role, while democratic decision-making (through parliament) should take care of its own role.
The fundamental principle of the Finnish labour market model is that any reform of industrial relations proceeds on a tripartite basis. This being so, the difficult issues may be watered down, as recent experience in reforming the Employment Contract Act has shown (FI9810179F). On the other hand, this model has guaranteed labour market peace, and the government has not wanted to spoil its relations with the social partners.
On the trade union side, the SMEs' criticism and claims of rigidity are seen as groundless, because opportunities for local-level collective agreements have been extended continually throughout the 1990s (FI9812186F) and the system has been liberalised by legislative means, among others.
Eurofound doporučuje citovat tuto publikaci následujícím způsobem.
Eurofound (1999), SMEs criticise rigid industrial relations system, article.
