Finland public sector unions push for significant pay increase amid contract negotiations

The public sector in Finland, predominantly employing women, is gearing up for challenging contract negotiations. The Finnish Trade Union Confederation (SAK) announced its ambition for a significant pay increase as part of its negotiation strategy. Member unions expressed their intent to seek a 10% pay hike from the ongoing bargaining round, with an initial goal of 6% for the first year. They are aiming for a minimum increase of 150 euros in monthly salaries, followed by a 4% rise and an additional increase of at least 100 euros in the second year.

This mixed approach is seen as beneficial for low-wage sectors by ensuring relatively higher pay increases for lower earners. The negotiations also involve the Service Union PAM and the Union of Public and Welfare Employees (JHL), which together represent employees in various sectors, including healthcare and education.

The tense labor market has prompted leaders from other labor unions, STTK and Akava, to consider the implications of SAK’s targets, particularly as contracts for municipalities and welfare sectors reach expiration by the end of April.

One major issue that has arisen is a government-proposed model linked to export-driven sectors, dubbed the “wage pit law” by unions. This model emphasizes the importance of export agreements and has raised concerns about its potential impact on negotiations across all sectors.

In this complex landscape, challenges are compounded by the introduction of new legislation affecting workers’ rights, such as restrictions on the ability of healthcare professionals to strike. As the negotiations intensify in March, public sector unions anticipate that issues surrounding pay equity and worker rights will take center stage, particularly leading up to the municipal elections in April.