Controversy over proposed pay increase for public healthcare employees

The issue of pay increases in the public sector has emerged as one of the most controversial issues in relation to the impending wage talks. In the last election campaign, politicians largely agreed on the need to raise the pay levels of public healthcare employees. However, economists have warned that the budgetary framework will not allow for significant pay rises for any large group of public-sector employees.

During the recent election campaign in the winter of 2007, the National Coalition Party (Kokoomus) – which secured the greatest number of votes in the election on 18 March 2007 and as a result is now the ruling party – promoted the idea of the so-called ‘equality incomes policy agreement’, which envisaged considerable pay increases, in particular for nurses. However, this issue is now emerging as a complex problem: some labour market organisations have reproached the government for intervening in relations between such organisations.

Special pay increase proposed for nurses

The Union of Health and Social Care Services (Tehy) is promoting the introduction of a special pay programme, which would offer substantial pay increases for health and social care professionals. According to the Chair of Tehy, Jaana Laitinen-Pesola, the joint pay programme in the public sector at municipal level, secured under the current incomes policy agreement, has worked reasonably well; however, she argues that the increased demands with regard to pay increases have now gone beyond mutual interests. Ms Laitinen-Pesola stated: ‘We have recognised that the situation of professional nursing staff is so poor that we want to have our own pay programme for the healthcare sector.’

The current incomes policy agreement comprises a special municipal pay programme, which provides for an increase of a few additional percentage points in relation to the benchmarking centralised pay increases of nurses. In addition to the nurses, teachers employed by municipalities are provided for under this programme.

Education union critical of nurses’ pay demands

The strongest criticism in response to the pay demands of nurses has been expressed by the Trade Union of Education of Finland (Opetusalan Ammattijärjestö, OAJ), which represents about 117,000 teachers at various school levels and educational organisations. The Chair of OAJ, Erkki Kangasniemi, expressed his surprise that nurses did not consider the joint pay programme sufficiently favourable. According to Mr Kangasniemi, the pay increase demands of the nurses are totally disproportionate. He argued that it would be impossible for OAJ to accept a pay solution which would give nurses precedence over the public sector at municipal level. In response, Tehy rejected the criticisms of OAJ, stating that it had not demanded any precise salary level. According to Ms Laitinen-Pesola, Tehy had only sent a questionnaire concerning the desired salary to its local affiliated unions. The policies arising from this initiative will not be formulated until the autumn of 2007.

Further pay demands in public sector

Meanwhile, the Trade Union for the Public and Welfare Sectors (Julkisten ja hyvinvointialojen liitto, JHL), affiliated to the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK), is also demanding substantial pay increases for all occupational groups in the public sector. However, the Chair of JHL, Tuire Santamäki-Vuori, is anticipating that the pay negotiations will be extremely difficult. According to Ms Santamäki-Vuori: ‘The government has expressed its willingness to improve the personnel policy and the attractiveness of jobs in the public sector. Simultaneously, the encroaching of the pay difference between men and women has been discussed. However, the government’s economic provision for that is almost nil.’

JHL is the largest trade union in Finland, with about 225,000 members, some 71% of whom are women. According to Ms Santamäki-Vuori, substantial pay increases for all employee groups in the public sector would constitute the best equality policy. At the same time, the executive committee of JHL has demanded that the government clearly outlines how much money it has at its disposal to allow for public-sector pay increases.

Commentary

In the last election campaign, politicians largely agreed on the need to increase the pay levels of public healthcare employees. However, economists have warned that the budgetary framework will not allow for significant pay rises for any large group of public-sector employees.

Public opinion is very much in favour of pay increases in the public sector. According to a study conducted by the three trade union confederations – SAK, the Finnish Confederation of Salaried Employees (Toimihenkilökeskusjärjestö, STTK) and the Confederation of Unions for Academic Professionals (Akateemisten Toimihenkilöiden Keskusjärjestö, AKAVA) – around half the Finnish population believes that wage levels will improve in the public sector in the near future.

Pertti Juhani Jokivuori, Statistics Finland