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Economist Jorma Antila: Metalworkers' Union achieved a good balance between growth of real incomes and employment in the 1990s

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.

After the recession of the early 1990s the industries organised by the Metalworkers' Union stayed far away from full employment. This was a significant factor in collective bargaining. The union acted wisely by leaving "space" for growth in employment.

 
Other sites on economy and working life:

viiva.jpg (1278 bytes) Occupational safety and health in Finland, Socius 2-2001 (pdf-file)
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Documents of the SAK 16th Congress 28-30.5.2001
viiva.jpg (1278 bytes) Ten years of working conditions in the European Union, Eurofound's research summary (pdf-file)
viiva.jpg (1278 bytes) In terms of real property, one Finland equals two Nokias, Helsingin Sanomat 08.01.2001
viiva.jpg (1278 bytes) The growth of the Finnish economy did not eradicate unemployment, Helsingin Sanomat 03.01.2001
viiva.jpg (1278 bytes) Only one Finn in nine actually retire as late as 65, Helsingin Sanomat 02.01.2001
viiva.jpg (1278 bytes) Incomes policy agreement approved; The incomes policy agreement in a nutshell;The economic backgrounf of the incomes policy agreement  SAK 15.12.2000
viiva.jpg (1278 bytes) Collective bargaining in Finland 1999-2000, Pekka Sauramo, Labour Institute for Economic Research, Helsinki (pdf-file)
viiva.jpg (1278 bytes) Working environment greater cause of absenteeism than lifestyle Helsingin Sanomat International Edition 05.12.2000
viiva.jpg (1278 bytes) New job creation down 50 % this year Helsingin Sanomat International Edition 01.12.2000
viiva.jpg (1278 bytes) Made in Hong Finland Helsingin Sanomat International Edition 28.11.2000
viiva.jpg (1278 bytes) Bars and restaurants among Finland's most hazardous work places Helsingin Sanomat International Edition 27.11.2000
viiva.jpg (1278 bytes) Finland faces labour shortage in all sectors in 2005 Helsingin Sanomat International Edition 23.11.2000
viiva.jpg (1278 bytes) New two-year incomes agreement announced Helsingin Sanomat International Edition 17.11.2000
viiva.jpg (1278 bytes) Increased disparities in wealth distribution Helsingin Sanomat International Edition 09.11.2000
viiva.jpg (1278 bytes) Floating shopping centers might become a thing of the past Helsingin Sanomat International Edition 24.10.2000
viiva.jpg (1278 bytes) SAK member unions vote to go with two-year wage deal Helsingin Sanomat International Edition 03.10.2000
viiva.jpg (1278 bytes) National Economy
and State Finances

Ministry of Finance
viiva.jpg (1278 bytes) Occupational Safety and Health Ministry of Social Affairs and Health
viiva.jpg (1278 bytes) Dispute highlights threats to Finnish seafarers' jobs eironline
viiva.jpg (1278 bytes) Strikes break out as bargaining round nears conclusion eironline
viiva.jpg (1278 bytes) "Barometer" examines industrial relations in Baltic states eironline
viiva.jpg (1278 bytes) Strike levels fall in 1999 eironline
viiva.jpg (1278 bytes) Action programme launched to promote "ability to cope" at work eironline
viiva.jpg (1278 bytes) SAK computer campaign proves successful eironline
viiva.jpg (1278 bytes) European working time conference held in Helsinki
eironline

More on
and in Finland:

viiva.jpg (1278 bytes) Etusivu - The Finnish Link Resource
viiva.jpg (1278 bytes) Helsinki Camera - Views over the city
viiva.jpg (1278 bytes) Virtual Finland - Information about Finland - Facts about Finland
provided by the Ministry for Foreign Affairs

viiva.jpg (1278 bytes) Finland - World Fact Book entry - tons of links!
viiva.jpg (1278 bytes) Statistics Finland
viiva.jpg (1278 bytes) Helsingin Sanomat - International Edition - News from Finland
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