SAK sets objectives for next government

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In late autumn 2002, the Central Organisation of Finnish Trade Unions (SAK), presented its views on the goals that should be pursued by the new parliament and government to be elected in 2003. These proposals from Finland's largest trade union confederation seek to help the country adapt to the world of the future, through measures such as improvements in workers' skill levels.

The current term of the Finnish parliament expires in 2003, when a general election will be held. The current government is a 'rainbow' coalition government of left- and right-wing parties – the Social Democratic Party (Suomen Sosiaalidemokraattinen Puolue), the conservative National Coalition Party (Kansallinen Kokoomus), the Left-Wing Alliance (Vasemmistoliitto), the Greens (Vihreä Liitto) and the Swedish People's Party (Svenska Folkpartiet). Against the background of the coming election, in late autumn 2002, the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK) presented its goals for the next parliamentary term from 2003 to 2007.

Concern about demographic change

Finland is facing a large-scale 'generation transfer' and the most extensive change in the age composition of the labour force since the second world war. During the present decade, 700,000-800,000 employees will retire from working life - in other words, one-third of all Finnish employees will be replaced by others between now and 2010. According to SAK, one priority for the next government and parliament is to take measures in order to manage this transfer.

SAK believes that the change in the age composition of the Finnish population during recent decades is a threat to the financial basis of the welfare state, as it reduces tax revenue, increases pension costs and medical expenses, and creates a need for more care services.

Increasing the employment rate

Even if the economic boom which began in the mid-1990s created many new jobs, unemployment is still one of the major problems in Finnish society. SAK believes that improving employment levels must be regarded as the most important task in the next few years. In the organisation's view, the new government must set the target of raising the employment rate to 75% and reducing the unemployment rate to 5% by the end of the decade. This goal has also been proposed by the Prime Minister, Paavo Lipponen (a Social Democrat). In order to achieve this target, strong economic growth is needed, as this will increase tax accrual, strengthen public finances, ensure high-quality public services and appropriate social security, and make possible moderate relief in the taxation of work, states SAK.

SAK also proposes changes in taxation. In its view, the taxation of work must be reduced by shifting the emphasis more towards taxes on capital income and real estate property, as well as environmental taxes. The starting-point for changes in taxation and income transfers should be to ensure that work always pays. Consideration should be given to equal opportunities, since a high level of activity on the part of women is a precondition for raising the employment rate. Furthermore, a model which provides the parents of young children with a better chance genuinely to combine work and family life is needed, in SAK’s view.

SAK also considers it clear that, with increasing 'internationalisation', preparations for a well-considered immigration policy must be made. This can be seen as a contribution to the current discussions on the use of foreign labour (FI0209103N).

Competences highlighted

It is forecast that Finland will face a labour shortage in the future. To address this, SAK proposes that the competences and skills of unemployed people should be improved. At present about 650,000 people (out of 2.4 million) on the labour market are without basic education, while in 10 years' time, nearly 1 million people will retire from the workforce. In order to combat this problem, SAK sees it is necessary to raise the level of competence, particularly among the adult population.

Reconciling work and family life

SAK states that working life is becoming more hectic than ever. This is causing problems in reconciling work and family life. The insecurity of families concerning their livelihood has increased, due to temporary and 'atypical' work for example.

According to SAK, taking good care of future generations is crucial not only for the welfare of children and families but also because of a risk that the population will decline. The confederation states that working life should be flexible enough to give all parents a chance to shoulder their responsibilities of caring for and bringing up their children. To this end, SAK proposes that, for instance, partial childcare leave and partial childcare allowances must be reformed in such a way that they are a real option for the parents of young children. Further, it is necessary to offer parents of young school-age children more opportunities to work shorter hours.

Improving security

SAK considers that adjustment of Finland to economic globalisation may lead to a situation where people are forgotten and market forces dictate the solutions. SAK calls for legislative measures to secure employees’ rights in the face of competition. Further, the organisation views it as necessary that minimum working conditions must be applied to all work done in Finland, whatever the nationality of the employee.

Strong support for tripartite cooperation

SAK believes that the 'Finnish model'- a society based on agreement, cooperation and confidence - has proved effective, particularly when Finland had to be pulled out of the recession at the beginning of the 1990s. The organisation underlines the extensive cooperation between the social partners and the government, and their ability to negotiate and agree upon crucial issues, which can be seen as one of Finland's strong points and success factors. Tripartite cooperation should aim to make Finland a place which is good for people to live in and for industries to locate in.

Commentary

SAK, Finland's largest trade union confederation, has expressed its goals for the work of the next parliament and government. It is concerned about the ageing of the labour force and about labour shortages. At the same time, its goal is to raise the employment rate to 75%. This would be achieved by tax reform, among other measures. A significant goal is to invest in improving the competences of the labour force, with SAK favouring the use of educational means to try to influence employability. In this respect, the Finnish trade union movement is taking changes in the world as a fact and aiming to adapt to them through the improvement of skills. In SAK's new strategic thinking, employability has been given increased importance. The aim is to prepare for the future through growth and knowledge. The unions' wishes as to how the country should be governed in the future are broadly in line with the employers' goals. (Juha Hietanen, Ministry of Labour)