Controversy as paper workers stick to bargaining timetable

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In October 2000, the Finnish Paper Workers' Union announced that it will follow the bargaining timetable set out in its current collective agreement and negotiate on wage increases in January 2001. The goal of the central social partner organisations has been to conclude a centralised incomes policy agreement in November 2000. This difference in timetable is causing controversy as the bargaining round approaches.

After the sector-level collective bargaining round in spring 2000 (FI0005147F), many parties have expressed hopes that a centralised national incomes policy agreement can again be reached for 2001 and beyond, as occurred over 1995-9 (FI9801145F). The central social partner organisations have already started probings as to the possibility of concluding such a centralised incomes policy agreement as early as November 2000. However, in October the Finnish Paper Workers' Union (Paperiliitto) announced that it would follow the wage bargaining timetable laid down in the sector's current three-year collective agreement, concluded in April 2000 (FI0004145N). This means bargaining over pay increases for 2001 and 2002 in January 2001. This difference in timetables between the Paper Workers' Union and the central organisations is expected to cause controversy in the negotiation strategies of other unions. In the 2000 bargaining round, the hopes of a centralised agreement fell apart due to the solo line taken by a few strong trade unions (including the paper workers) and this left breaches in the mutual solidarity between unions (FI9910124N).

Now, helped by the low value of the euro and a beneficial business cycle, the paper workers again have good opportunities for demanding higher increases than other unions. The paper workers' decision to follow its own timetable will influence the deliberations of other unions on whether or not to participate in a centralised agreement. In the 2000 sectoral bargaining round, the strategy of the strong unions was to follow the progress of the negotiations and then seek to obtain better agreements than other wage earners, who had accepted the general 3.1% level of wage increase (FI0002135N). With the aid of forceful measures, including strikes, these demands were successful (FI0004142F). The employers obviously fear the recurrence of a similar kind of pattern this time. They have demanded a moderate wage policy appropriate to the EU Economic and Monetary Union (EMU) era, one which would ensure employment growth without increasing inflation pressures. The trade union camp is also aware of the risk of inflation. It remains to be seen how disciplined an approach the organisations will take, now that the national economy has resources available for sharing.