Working group on strike reform falls apart

A tripartite working group, expected to propose new laws on industrial action, unravelled when the Central Organisation of Trade Unions (SAK) and the Confederation of Professionals (STTK) withdrew. The Confederation of Finnish Industry (EK) expressed astonishment that this should happen in the final phase of negotiations after a unanimous conclusion had apparently been reached. SAK and STTK insist that they will not accept any restriction on a worker’s right to strike.

Background

Social parties agreed last summer to start preparing a tripartite revision of legislation on industrial peace. The general goals of the tripartite working group were defined as:

• laying foundations for a sustainable bargaining system;

• enhancement of negotiation procedures;

• workable conciliation procedures for disputes;

• solid and harmonious labour market situation and equal status of negotiating parties.

The parties wanted to create preconditions for decreasing the number of disputes and amount of industrial action. The deadline for the preparatory work on legal reform was the end of October 2010.

The Finnish annual average of working days lost through industrial action per 1,000 employees was relatively high between 2005 and 2009 (TN1004049S). Employers have particularly criticised the use of ‘solidarity’ and sympathy strikes, which they consider illegal. In 2008, the then National Conciliator Juhani Salonius said social partners should clarify how sympathy strikes could be controlled (FI0807019I).

Social partner negotiators produced a joint opinion on these matters at the end of October. However, the board of the Central Organisation of Finnish Trade Unions (SAK) took a very different stance. Both SAK and the Finnish Confederation of Professionals (STTK) announced that they would not accept any reform that could potentially restrict an employee’s right to strike.

Surprising last-minute withdrawal of SAK and STTK

During the tripartite discussions, SAK leaders agreed that there was room for improvement in the negotiation procedures, collective bargaining and collective agreements.

However, SAK say that recent appearances of the Confederation of Finnish Industries (EK) indicate that the true goal of the employers in tripartite talks has been to restrict the right to strike. Progress in the coordination of negotiations has not turned out as SAK had planned, although a unanimous agreement was already reached last June.

Consequently, the board of SAK could not accept the proposed revisions of the legislation concerning industrial peace and negotiation activities.

Leaders of the Finnish Confederation of Professionals (STTK) also discussed the proposals for changing the laws but they say the present legislation is working and there is no need for additional arrangements.

The President of STTK, Mikko Mäenpää, said that the failure of negotiations is, above all, a message to EK. Mr Mäenpää stated: ‘Employers and EK cannot alone define what is to be on the agenda of the social partners. It should be obvious that there is a need to define mutual goals for the improvement of the labour market and negotiation system.’

According to STTK, the right to take industrial action is a particularly sensitive subject. Mr Mäenpää referred to recent statements by the General Director of EK, Mikko Pukkinen, strongly arguing against the use of strikes, and he added: ‘If there is the slightest doubt that the revision of legislation on industrial peace could lead to the restriction of the right to industrial action, we cannot proceed down that path.’

AKAVA is willing to continue negotiations

In contrast to SAK and STTK, the Confederation of Unions for Academic Professionals in Finland (AKAVA), has announced that it is ready to continue with the legislative reform. However, AKAVA believes that the withdrawal of SAK and STTK has improved the situation, because now the remaining social partners are determined to follow through with the reforms by consensus.

EK disappointed with breakdown in negotiations

The Director of Industrial Relations at EK, Eeva-Liisa Inkeroinen, denies that the only purpose of the employers’ side was to restrict the employees’ right to strike. She said that the social partners jointly agreed on the need for reform, and the problems and disadvantages of the current situation have not disappeared. She admits that employers have been worrying for a long time about the high incidence of illegal industrial action.

EK has stated that it is very disappointed with the decision of SAK and STTK to withdraw from negotiations. It emphasised that an important part of legislation reform is to evaluate the reasons for disputes, and expressed its hope that SAK can be persuaded to change its position.

Eeva-Liisa Inkeroinen added that industrial peace is a key factor of national competitiveness. She said: ‘Social partners have done background preparation for this matter over two years, and negotiations have been working out in a good and trustworthy atmosphere. SAK’s change of heart was therefore a total surprise.’

Pertti Jokivuori, University of Jyväskylä