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Labour flexibility helped Finland
pull out of deep recession in early 1990s

Helsinki (06.09.2002 Juhani Artto) Since the 1980s the favoured mantra of employers in Finland, as in many other countries, has been flexibility. Employer representatives have criticised labour and the trade unions for defending "overly rigid" working hours, pay scales, social security norms and other "inflexibilities" in collective agreements and legislation. This, they say, undermines the international competitiveness of enterprises based in Finland.

A new study prepared by several reputable researchers has now refuted the main contention of this approach. The authors claim that labour flexibility was one of the key factors, if not the principal factor - that turned the deep recession of the early 1990s into a sustained period of rapid economic growth.

What kind of flexibility do the researchers mean? Over the period from 1990 to 1995 up to 23 per cent of workers in urban regions changed their occupations. The frequency was highest in accounting and commerce. Almost one third of those who adopted a new occupation were unemployed, and more than a quarter had no previous vocational training. The rate of regional mobility was also high.

Atypical forms of work rapidly became much more common. In the late 1980s a single, regular, full-time job was almost a norm for those in work. Nowadays, however, one job in four falls into an atypical category such as part-time, temporary or agency work.

"We may even speak of excessive flexibility," is the comment of Kirsti Palanko-Laaka, who leads the work environment department at Finland’s largest trade union confederation SAK. "The increased flexibility has been managed well in part, when based on local agreements, but also poorly. Nowadays manpower usage often resembles the Wild West."

Negative consequences can be seen in cases where employees have lost the ability to manage their lives and to combine work with family life. The increased stress that is closely associated with flexibility also causes an alarming incidence of mental disorders, and characterises the badly managed aspect of contemporary working life.

Both Palanko-Laaka and the researchers stress that continuous rapid changes in working life can be socially acceptable only when social safety nets function properly.

"Casual workers, for example, require a social security reform to achieve some kind of predictable and balanced income", says the research project leader, professor Pertti Koistinen of Tampere University.

The leader writer of Helsingin Sanomat, Finland’s largest circulation daily newspaper, interprets the main conclusion of the study by dividing labour into two categories according to flexibility. Firstly, there are the young workers who sustained the explosive growth of the IT sector. The writer believes that there was a highly voluntary character involved in approving extremely flexible working conditions in this sector.

Other workers who showed willingness to accept greater flexibility in their working conditions did so, according to the Helsingin Sanomat leader, in the absence of any viable alternative.

*Pertti Koistinen and Werner Sengenberger (ed.), "Labour flexibility, A Factor of the Economic and Social Performance of Finland in the 1990s", (encrypted)

 
Other sites on economy and working life:

viiva.jpg (1278 bytes) Guide for Foreigners Working in Finland by SAK, STTK and Akava
viiva.jpg (1278 bytes) Finnish wages are lousy, Helsingin Sanomat 04.06.2002
viiva.jpg (1278 bytes) Everything at stake - safeguarding interests in a world without frontiers
viiva.jpg (1278 bytes) Statistics Finland
viiva.jpg (1278 bytes) Occupational safety and health in Finland, Socius 2-2001 (pdf-file)
viiva.jpg (1278 bytes)
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
viiva.jpg (1278 bytes) Need a reliable lawyer - The Finnish Bar Association can help
viiva.jpg (1278 bytes) Moving to Finland? - Directorate of Immigration
viiva.jpg (1278 bytes) Ministry of Labour Migration affairs page
viiva.jpg (1278 bytes) National Equal Opportunities Network - Fighting discrimination