Työfoorumi 2005 Tallinn March 2 nd 2005 Max Lindholm LL.M Finnish Trade SK LABOUR MARKET PARTIES, EMPLOYERS´ CONFEDERATIONS AND TRADE UNIONS – ONLY PROBLEMS?

End of 19th Century: Reluctance from Employers to negotiate with employees 19th century, evolving trade unions and tariff- agreements (i.e salary-agreements example: bookprints) s, more tariff-agreements across the field, first strikes 1930s-1940s, hard fights between employers and employees over labour conditions 1940 “January engagement”, co-operation between social partners BACKGROUNDS OF THE FINNISH LABOUR MARKET SYSTEM

End of 19th Century: Reluctance from Employers to negotiate with employees 1968 – “Liinamaa I”, Period of income policy agreements. During this period the labour market was basically self- regulated, with necessary legislative initiatives backed- up by the bi-partite labour market organisations. Collective bargaining, including the requisite of peace at work (no strikes), was extremely important , Harsh economic reality; trade unions defended current labour standards, whilst employers wanted to cut them. Employers felt strained by binding labour standards and many went bankrupt 1996 – Re-evolving of the income policy agreement- system BACKGROUNDS OF THE FINNISH LABOUR MARKET SYSTEM

THE SOCIAL PARTNERS IN FINLAND Employees´ Organisations Central Organisation of Finnish Trade Unions SAK Confederation of Salaried Employees STTK Confederation of Unions for Academic Professional AKAVA Employers´ Organisations Finnish Industries EK Commission for Local Authority Employers KT State Employers Office Church of Finland Negotiating Commission KiSV

S AK Finnish Industries EK The Central Organisation of Finnish Trade Unions SAK Finnish Trade SK Service Union United PAM EmployerEmployee Income Policy Agreement Collective Agreement Contract of Work THE STRUCTURE OF COLLECTIVE BARGAINING

LABOUR MARKET PARTIES AND THEIR PRIMARY TASKS Employers´ confederations have to try to improve the competitiveness of companies, improve their working environment in the society, and to enhance the use of flexible solutions regarding the personnel. Cost of work is crucial in a globalised economy Trade unions have to work for improvement of the working conditions of their members, and to work for social inclusion at all levels of society. They want also to protect work in the country against effects of globalisation and out-sourcing.

WHAT GOOD DOES COME OUT OF SOCIAL DIALOGUE BETWEEN SOCIAL PARTNERS? Common goals, for instance - improve nations´ competitiveness in a global economy - improve working conditions, insofar it is economically possible - work towards steady employment and against unemployment - working on social questions together is better than having politicians decide for us, we have the practical knowledge of working life

BEST PRACTICE OF BENEFITS FROM MEMBERSHIP AND PARTICIPATION IN LABOUR MARKET STRUCTURE? 1.Dispute settlement taken away from companies, less personal tensions 2.Common projects, on for example educational, working time, international and legislative affairs 3.Working together rather than only against trade unions gives them incentives to consider also companies´ relevant needs 4.National confrontation, as was earlier in history, is unfruitful in a time when all must be done to preserve nations in the global competition