Female-dominated public sector groups join incomes policy agreement

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A number of Finnish trade unions representing public sector occupations dominated by women employees - such as kindergarten teachers and social workers - did not initially sign up to the country's two-year central incomes policy agreement concluded in December 2000. Some threatened strike action in order to obtain additional pay increases. However, in January 2001, these groups signed up to agreements providing for the same increases as other workers - 3.1% for 2001 and 2.3% for 2002.

A two-year comprehensive incomes policy agreement was signed in December 2000 (FI0012170F) by all Finland's central employer and trade union confederations except the Confederation of Unions for Academic Professionals (Akateemisten Toimihenkilöiden Keskusjärjestö, AKAVA). AKAVA refrained from signing, largely due to pressure from its affiliate, the Trade Union of Education in Finland (Opettajien Ammattijärjestö, OAJ). AKAVA wanted, over and above the general wage increase set out in the central deal (3.1% for the first year and 2.3% for the second), a special "education increment" of 0.2% of the paybill of all wage earners. This increment was meant to be used for increasing the pay of highly educated employees whose salaries fell below a certain level.

The education increment was rejected by the other central organisations, and AKAVA's failure to sign threatened the whole settlement. The Confederation of Finnish Industry and Employers (Teollisuuden ja Työnantajain Keskusliitto, TT) considered that the coverage of the incomes policy agreement would not be wide-ranging enough without AKAVA's participation, and was prepared to start sectoral bargaining instead. However, these fears were assuaged when most of AKAVA's individual member unions promptly signed up to the deal, with the exception of a number of affiliates organising a large proportion of women with a high level of education. It was anticipated that there might be difficult bargaining for these groups.

However, during January 2001 these female-dominated AKAVA unions accepted an agreement in line with the central incomes policy agreement. Both the Union of Professional Social Workers (Sosiaalityöntekijäin Liitto) and the kindergarten teachers affiliated to OAJ decided to accept the two-year deal reached for municipal civil servants.

The low-paid public sector employee groups made up largely by women - such as kindergarten teachers, social workers and librarians - initially sought to achieve the education increment excluded from the central pay deal though sectoral bargaining, and the kindergarten teachers and social workers warned of strikes if the goal was not achieved. The Commission for Local Authority Employers (Kunnallinen Työmarkkinalaitos, KT) refused to assent to these demands, considering that the various wage increases agreed at the central level were already directed at these groups. The bargaining finally ended with the dissident groups approving the municipal civil service pay deal, which was in line with the central incomes policy agreement.

In Finland, the municipal sector provides the basic services of healthcare, social services and education which are typical of the Nordic welfare states. Some 76% of municipal personnel are female, and he average monthly wage for women working normal hours in the sector is FIM 10,758. The main social partners in the municipal sector have launched a joint study on pay levels in the sector, compared with those in the general labour market. There has been a wide-ranging debate recently on how the municipal sector can compete for skilled labour in the future.