Trade unions demand ten percent salary increase in Finland amid rising inflation

Trade unions have set ambitious salary increase demands, seeking a ten percent raise for their members, which is significantly higher than previous negotiations, according to Mika Helander, a senior lecturer at Åbo Akademi. The member unions of the Central Organization of Finnish Trade Unions (SAK) announced their goals for the upcoming year, aiming for a six percent increase along with a minimum monthly rise of €150. The following year, they expect an additional four percent increase and at least €100 monthly.

The unions justify their demands as a means to enhance purchasing power. Helander considers the negotiation landscape in light of both wage trends and government labor policies. He notes that after several previous rounds of moderate increases, current raises have lagged, coinciding with high inflation. He suggests that the government’s labor reforms have contributed to rising tensions in the negotiations.

Last spring, worker organizations conducted widespread political strikes against the government’s proposed reforms, including restrictions on the right to strike and changes to unemployment benefits. Helander indicates that history shows negotiations tend to become complicated when the labor market is subjected to significant changes.

Instead of seeking mere compensation, Helander believes the unions are attempting to assess the true impact of changes that they deem detrimental. He points to a model reliant on export-driven sectors, where wage increases in these industries would set benchmarks for others.

On the employer’s side, there is skepticism regarding the unions’ demands, with the CEO of Technology Industries arguing that these figures are unrealistic. However, Helander envisions a longer-term possibility for the proposed increases, suggesting that the current situation differs significantly from the financial crisis of the 2000s, which saw extreme wage increases followed by a global economic downturn. He emphasizes that the battle over workforce compensation continues beyond legislative changes, as negotiations over the value of labor remain ongoing.