Strikes break out as bargaining round nears conclusion

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The final agreements in Finland's sectoral collective bargaining round in spring 2000 were hastened by a number of strikes. The first significant industrial action took place in March in the chemicals industry, where an agreement was achieved after a week-long strike. This was followed by a major nationwide five-day strike in the transport sector, with the scope of the dispute widened by a lock-out by employers, leading to an agreement on 3 April. Finally, a deal for the paper sector was reached on 19 April, after a nationwide strike lasting over a week.

Collective bargaining in Finland has been occurring at sector level in spring 2000, as a central incomes policy agreement proved impossible to reach (FI9910124N). After initial relatively smooth progress in metalworking (FI0001133F) and many other sectors (FI0002135N), difficulties emerged in March. The trade unions whose opposition scuppered a central incomes policy agreement in autumn 1999 - notably those in the chemicals, paper, food and transport sectors - sought settlements beyond the general wage increase benchmark of 3.1%, set by metalworking, with which the majority of unions have been satisfied. Further, many unions have been pushing for a cut in working time, a proposal very strongly opposed by employers. Industrial action broke out in a number of sectors, most notably chemicals, transport and paper (FI0003137N).

Strike in the chemicals sector

The negotiations between the Chemical Workers' Union (Kemianliitto) and the Chemical Industry Federation of Finland (Kemianteollisuus) - seeking a collective agreement lasting several years - broke down on 15 March 2000, precipitating a strike which began the next day. Bargaining had been going on throughout the winter, but no solution to the sector's specific problems could be reached, even through conciliation.

The union's demands in the chemicals sector were aimed at significantly higher pay rises than the general trend, as well as structural wage reform and a cut in working time. In addition, joint procedures for regulating the use of external labour were under debate, while workers objected to the proposed loss of an extra day's pay granted previously and - according to the union - the employers' aim of decreasing the average earnings per hour for shiftworkers receiving an hourly wage.

The Chemical Industry Federation estimated that the demands of the Chemical Workers' Union would have had a cost effect of 7.5%-8%, more than double the general trend. Furthermore, according to the employers, the demands for a cut in working time, a limit on subcontracting and clarification of wage bonus procedures were additional factors that caused the situation to culminate in a strike involving 4,700 workers.

Annual working time cut

On 23 March 2000, after one week's cessation of work and with the help of the National Conciliator, Juhani Salonius, the social partners in chemicals concluded a collective agreement that covers 18,000 workers. According to the Chemical Industry Federation, the agreement - lasting more than three years - increases the wages of the employees in the heavy chemicals, oil, gas, petrochemicals, plastics and chemicals product industries by 3.9% in the first year. For the two years after that, the intention is to follow the general trend in industry as a whole. Further, the union succeeded in its demand of making Saturday after Ascension Day a paid holiday - which means a cut of one shift, ie eight hours, in annual working time. Earlier, the Metalworkers' Union (Metalli) had tried to achieve the same, but failed. The chemicals industry employers considered the solution as expensive - but, on the other hand, as a guarantee of longer-lasting labour market peace. Also, reforms in the wage system will be carried out, meaning that half of the union's members will come within the sphere of new systems. Overall, the union expressed its satisfaction with the compromise agreement, even if all its goals were not achieved.

The strike complicated oil and petrol deliveries, whose absence would probably have affected consumer-level distribution after a few more days. The strike was about to spread to the plastics and chemicals industry as well, but these threats were called off once the settlement was reached. The factories started up again immediately after the strike ended. The action caused losses of several hundred million FIM due to the interruption of sales.

A notable feature of this strike was that local agreements were reached at a couple of factories, where workers returned to work after the employers offered special bonuses and accepted the original demands for cuts in working time.

Major strike in transport sector

Following the strike in the chemicals sector, the Finnish Transport Workers' Union (Auto- ja Kuljetusalan Työntekijäliitto, AKT) started a massive countrywide strike on 28 March 2000. At the same time, the Employers' Federation of Road Transport (Autoliikenteen Työnantajaliitto, ALT) started an lock-out, which extended the range of the strike considerably. Immediately after the strike broke out, the National Conciliator submitted a proposal for a settlement, but the employers rejected it. The reason for the strike was disagreement on wages and working time. Furthermore, AKT backed a local strike in the town of Tampere concerning a demand by the employees of one private transport company for extra pay (of over FIM 3 per hour), which they considered as justified in view of an extension of the town's general public transport ticket to cover this company.

The nationwide strike stopped a considerable proportion of the country's passenger and goods traffic. Over 15,000 lorry and bus drivers as well as terminal and booking office workers were included in the strike and lock-out. At the same time, a support strike by dockers stopped the handling of goods in Finnish ports, and transportation of chemicals for industry was also halted. In addition, AKT announced a boycott by the subcontracting lorry drivers falling within the sphere of the strike, while the Finnish Seafarers' Union (Suomen Merimiesunioni, SM-U) started support strikes on Finnish ships, refusing to load and to carry goods.

The strike and lock-out in the transport sector ended on 3 April 2000 after a stoppage of five days, when a new agreement was reached. The deal runs for three years and covers nearly 30,000 employees. The cost effect for the first year will be about 4.9%. The aim for the other two years is to follow the general trend, plus an additional 1.4% pay rise. The drivers in Tampere received extra pay, though - at FIM 2.20 per hour - considerably less than demanded.

This strike was considered very severe in terms of the functioning of society in general, because it concerned not only goods deliveries to industry but also the majority of ordinary citizens.

Latest situation

By early April, over 95% of Finnish wage earners were covered by a new collective agreement. The situation in terms of new and pending agreements was as follows:

• the Finnish Foodstuff Workers' Union (Suomen Elintarviketyöläisten Liitto, SEL) and the Finnish Food and Drink Industries' Federation (Elintarviketeollisuusliitto, ETL) reached an agreement for the food sector on 13 March 2000. The agreement follows the general 3.1% pay rise trend and covers 25,000 employees. Working time remains as before, rather than changing, as proposed, to a seasonal flexible working time system (with up to 50 hours per week in the peak season, compensated by adjustments in the low season);

• a railway engine drivers' strike was averted by a two-year agreement between the Finnish Locomotive Drivers' Union (Veturimiesten Liitto, VML) and the Employers' Association for Transport and Special Services (Liikenne- ja Erityisalojen Työnantajat, LTY). The agreement follows the general trend and covers about 2,100 workers;

• a strike in the forest machinery industry was ended on 17 March 2000 by an agreement between the Wood and Allied Workers' Union (Puu- ja Erityisalojen Liitto, PL) and the Employers' Trade Association of Finnish Forestry and Earth-Moving Contractors (Koneyrittäjien Liitto). The agreement lasts nearly two years and covers about 3,000 employees. Pay rises in the first year follow the general trend, while for the second year, the increase will be about 4%. The employers have reserved the right to cancel the agreement concerning the second year at two weeks' notice; and

• the agreement concerning the 3,500 dockers organised by AKT had not yet not been renewed yet with the Federation of Finnish Master Stevedores (Suomen Lastauttajain Liitto, SLL).

On 11 April 2000, the Paper Workers' Union (Paperiliitto) launched the first nationwide strike in its history, covering all 30,000 members in the paper sector. Negotiations over a new sectoral agreement had broken down due to disagreement concerning working time, security in the event of lay-offs, bonus systems, subcontracting and wages (FI0004143N). The strike ended after more than a week on 19 April 2000, with the conclusion of a new collective agreement for the sector. The agreement is valid for three years, and the cost effect of the wage increase for the first year is under 4%. Wage increases for the second and third years were left open for subsequent agreement. Settlements were also achieved for the various specific sectoral problems (FI0004145N).

Commentary

In a country like Finland, dependent on foreign trade, the strike in the transport sector demonstrated how the power of the trade unions can still stop functions that are essential to industry and to the general public. This strike raised the additional question of the current right to engage in support strikes if the participating union has a collective agreement in force. However, this right is unlikely be interfered with, as it is a key weapon for the labour movement, which is holding on to it tightly.

The chemical workers' union is considered to have made a significant breakthrough in the working time issue. Though it failed to achieve its overall goal, obtaining an extra day's paid holiday can be seen as psychologically important in a wider context - because during the collective bargaining round, the employers elsewhere had consistently refused to cut working time. Subsequently, the Paper Workers' Union also won an extra day's holiday, but only for around 40% of its members (those on discontinuous shifts). This fell far short of union's original demand for a working time reduction of seven shifts per year over a three-year period, and caused considerable disappointment among the union's members. However, they approved the agreement, not least because continued strike action would have been expensive for them as well as for employers. (Juha Hietanen, Ministry of Labour)