TT satisfied with stabilising effect of central agreement but concerned about costs
Ippubblikat: 16 January 2003
According to a survey published by the Confederation of Finnish Industry and Employers (TT) in December 2002, the economic future is uncertain and employment will decline. TT has welcomed the stability brought by the new 2003-4 central incomes policy agreement, but believes that more moderate wage increases combined with tax cuts would have better supported employment growth.
Download article in original language : FI0212111NFI.DOC
According to a survey published by the Confederation of Finnish Industry and Employers (TT) in December 2002, the economic future is uncertain and employment will decline. TT has welcomed the stability brought by the new 2003-4 central incomes policy agreement, but believes that more moderate wage increases combined with tax cuts would have better supported employment growth.
According to a survey published by the Confederation of Finnish Industry and Employers (Teollisuuden ja Työnantajain Keskusliitto, TT) in December 2002, production and productivity in Finnish industry fell over the past year. After a peak at the beginning of 2002, prospects have weakened. In the employers' organisation’s view, employment in industry and construction has been exceptionally positive, and companies have acted responsibly and tried to take care of their workforces (FI0209104F).
According to the TT survey, the future is seen as considerably more uncertain than before and a decline in employment is feared. Expectations of an economic upturn have been postponed and the international environment, including the currency markets, is uncertain. The economic prospects of the USA and Europe are weak, and the risks of disruption have increased due to the unrest in the Middle-East.
The survey was carried out in October 2002, when the cost effects of the new two-year central incomes policy agreement for 2003-4, reached in December 2002 (FI0212103F), were not known. According to TT, the new agreement partly removes current uncertainty and promotes the development of a predictable economic environment (FI0211102F). However, TT also considers that the agreement weakens the competitiveness of companies and does not improve employment. Industry employers would have hoped for more moderate wage increases, combined with larger tax cuts. The survey states that competitiveness could have been maintained through a lower cost development, thus supporting employment.
Trade unions consider the wage increases agreed in the central deal (which will have a cost effect of 2.9% in 2003 and 2.2% in 2004) as correctly proportioned, and appreciate the employers' responsibility in avoiding redundancies.
Il-Eurofound jirrakkomanda li din il-pubblikazzjoni tiġi kkwotata kif ġej.
Eurofound (2003), TT satisfied with stabilising effect of central agreement but concerned about costs, article.
