After the publication of the reports on EMU by the expert working party commissioned by the Government and by the economists in the incomes policy assessment committee, the labour market organisations issued a statement on the impact of EMU on the Finnish labour market on 22 May 1997 (FI9705115N [1]). The most influential advocate of EMU is the President of Finland, Martti Ahtisaari who presented his views on the benefits of EMU for Finland in his speech at the 90th anniversary meeting of the Central Organisation of Finnish Trade Unions (SAK) on 24 May 1997.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/two-reports-published-on-the-industrial-relations-implications-of-emu-in-finland
In mid-1997, there seems to be a wide consensus between the Finnish Government and the social partners about EU Economic and Monetary Union (EMU).
After the publication of the reports on EMU by the expert working party commissioned by the Government and by the economists in the incomes policy assessment committee, the labour market organisations issued a statement on the impact of EMU on the Finnish labour market on 22 May 1997 (FI9705115N). The most influential advocate of EMU is the President of Finland, Martti Ahtisaari who presented his views on the benefits of EMU for Finland in his speech at the 90th anniversary meeting of the Central Organisation of Finnish Trade Unions (SAK) on 24 May 1997.
Among the individual employees' organisations ,only the Metalworkers' Union- the largest affiliate of SAK - has had time to ascertain the views of its members on taking part in EMU; this resulted in a clear vote of support for the decision. The Finnish Paperworkers' Union would like to instigate special arrangements in order to minimise any possible risks to employees in the forestry industry. The final positions of the organisations on joining EMU are expected in November 1997. SAK has publicly moved towards a positive stance on the basis of various assessments. However, the council of SAK has postponed its final decision until November because it wishes to see the result of the negotiations on creating "buffer reserves", to give the parties an advantage in defining EMU policy. As part of the current national incomes policy agreement, there will be tripartite negotiations on these reserves, which are sought by unions in order to provide compensation in case wage levels are threatened by fluctuations within EMU. It is unclear how these reserves would be created, and unions and employers disagree on the matter.
The Confederation of Finnish Industry and Employers (TT) stresses that EMU will bring economic stability and efficiency. In the Confederation's opinion, Finland should not delay joining EMU. The Confederation claims that the benefits of joining will outweigh the disadvantages. According to Jukka Härmälä, the chair of TT, the best EMU "buffers" from industry's viewpoint are created through healthy national accounts and, in particular, healthy company balance sheets, as well as self-sufficiency.
The report by the Finnish expert working party on EMU emphasises the benefits of efficiency created by EMU, the precondition of which is low inflation. The traditional problem of the Finnish system of negotiating agreements at the level of individual unions is the susceptibility to inflationary pressures.
The EMU report states that the growth and stability pact narrows the scope for financial policy in particular. According to the Central Organisation of Professional Associations in Finland, AKAVA, it is important to be prepared for any exceptional disturbances at national level to secure employment and citizens' purchasing power. In particular, the incomes policy mechanism and close cooperation between government, unions and employers in Finland must be seen to operate smoothly. The Executive Committee of AKAVA has decided to finalise its position towards EMU membership in November.
The council of the Confederation of Technical Employee Organisations in Finland,STTK, is seeking reassurance that the the standard of living of its members should be maintained. This organisation also advocates the need for a buffer reserve system. The buffer reserves would be used when necessary to stimulate employment.
The central trade union confederations, in their appeal to Paavo Lipponen, the Prime Minister of Finland on 30 May 1997 emphasised that the so-called EMU stability pact must include job creation. SAK, AKAVA and STTK believe that simply to follow slavishly the demands of EMU integration could hamper regional development and prove to be disadvantageous to different minority groups. The trade unions see economic growth in the European economy as essential for investment and employment.
Eurofound recommends citing this publication in the following way.
Eurofound (1997), Wide consensus in Finland in favour of EMU, article.
