Helsinki (02.01.2002 - Juhani Artto) Researcher Jorma Antila of the Finnish Metalworkers' Union has analysed the progress of income divisions between capital, wages and salaries (functional income division) in five industries, organised by the union. His statistical material covers the years 1975-2000.

Until the beginning of the exceptionally deep recession of the early 1990s variations in the division between capital, wages and salaries were small i.e. the functional income division remained largely unchanged. Differing developments emerged only after this time.

• In the "mature" slow-growing industries functional income division remained practically unchanged. The division was balanced by an increase in employment. This occurred in the production of metal products, equipment, machinery and vehicles.
• In the capital-intensive production of metals the fall in employment has been stopped, even though the industry has continuously become more capital intensive. During the 1990s the income division between capital, wages and salaries fluctuated widely, but did not change significantly on average.
• In the electronics industry the slow growth of wages and salaries gave enterprises considerable leeway to invest in research and development. This became an important factor in the industry's success, including the world-renowned story of Nokia's advance to pole position in the global mobile telephone business. Employment in this sector, especially that of salaried professionals, also grew strongly in the late 1990s.

Antila concludes his study by discussing the question of how successful the Metalworkers' union has been in its collective bargaining. Maintenance of the "wage and salary norm" (where real income growth matches growth in productivity) keeps the functional income division unchanged. However, Antila notes, it is only reasonable to apply this criterion in a full employment situation.

In the early 1990s, with the wage and salary norm as the starting point, the union's collective bargaining was not entirely successful. However results were good with regard to functional income division. In the late 1990s the union succeeded well, measured both by the wage and salary norm and by functional income division, except in the electronics industry.