Four service worker unions merge in the private sector Harder to cope with current work load, say 87 per cent of Finns
National agreements remain the basis:
Labour market policies also formulated at European level
New book discusses long-term trends in working conditions: a
hastier work tempo and an increase in unpaid overtime but new opportunities for personal
development
Union activists achieve historic breakthrough in Finland: Two
regional shop stewards now represent 1,500 McDonald's employees around the country
Four service worker unions merge
in the private sector
Helsinki (14.12.1998 - Juhani Artto) Four
service worker unions plan to merge in 2001. The letter of intent was signed in early
December. With more than 200,000 members the new trade union will become the second
largest in Finland. The Municipal Sector Trade Union has 228,000 members.
The merging unions are the Union of
Commercial Employees (130,000 members), the Hotel and Restaurant Workers Union (51,000
members), the Union of Technical and Special Trades (10,000 members) and the Caretakers
Union (13,000 members). More than 80 per cent of the members in the two larger unions are
women.
Many factors favour the merger. It will
improve organising and lobbying power and helps to build trade union unity, as the members
of these unions partly work in the same places. Recently some of the parties were involved
in a bitter dispute about which union should organise cleaning staff.
In collective bargaining the new union
should seek a framework agreement covering the whole of the service sector, suggests
Maj-Len Remahl, who chairs the Union of Commercial Employees.
Another goal, Remahl says, is to make the
new union so attractive that service sector employees are eager to join it, feel secure as
its members and regard it as an effective channel for improving their well-being. Here she
refers to recent studies showing that the main reason for joining unions is
earnings-related unemployment benefit. Remahl is unhappy with this kind of preference and
insists that the new union should be more attractive than its predecessors.
Although lots of preparatory work still
needs to be done in the four union merger, Remahl is inviting even more unions to join in
the process. In the short term it could also include two more service sector unions which
are affiliated to the largest central trade union organisation, SAK.
In the longer term the challenges are
mergers, which would mean crossing the central trade union borders.
The president of the Hotel and Restaurant
Workers Union, Jorma Kallio, is also ready to see more unions joining in the merger
process. He sees a growing threat to basic employee rights in working life unless the
unions are strong and based on mutually loyal structures.
Harder to cope with current work load,
say 87 per cent of Finns
Helsinki (07.12.1998) In Finland a huge
majority, i.e. 87 %, is of the opinion that difficulties in coping with workloads, and
even burn out, currently constitute a major problem at work. Only 28 % think that
productivity could be increased even further in order to be more competitive in the
international market place.
These results were discovered during a
survey on the present labour market climate, which was conducted by Finnish Gallup on
behalf of SAK, the Central Organisation of Finnish Trade Unions. During August and
September, 1021 Finns over the age of 15 were interviewed. These interviewees were
representative of the population of that age group throughout Finland, with the exception
of the Åland Islands.
The problem of coping with workloads is
particularly significant amongst the members of SAK, at 91 %, and amongst those of STTK,
the Finnish Confederation of Salaried Employees, at 96 %. Excessively tight work schedules
were mentioned by 84 % of the members of AKAVA, the Confederation of Unions for Academic
Professionals in Finland. Women are more concerned with the complications resulting from
workload difficulties and cases of burn out, 92 % of them seeing this as an issue, whilst
81 % of men have a similar view.
Two thirds of Finns, or 67 %, consider it
to be an unfair practice that good company results and good performance are of more
benefit to company executives than they are to the workforce, through share option
incentive schemes which significantly increase the earnings of those in management. Three
quarters, or 76 %, are of the opinion that the employees should be awarded the same
increases in earnings as are the executives. The SAK members are the most strongly
critical of the share option schemes. The opinions recorded by this survey will no doubt
increase the pressures of the next collective bargaining cycle.
The survey indicated that trust is still
placed upon collective agreements. Among the interviewees 84 % believe that the terms and
conditions of work, including wages and salaries, should be collectively negotiated and
agreed upon for the reason that an individual employee cannot negotiate their own pay on
an equal footing with the employer. The number of Finns who believe that the employee will
be the loser, should pay and other terms of employment be agreed upon solely at the
workplace, is 67%.
Four out of every five Finns, or 80 %, are
of the opinion that it would not make sense to lower the rate of taxation if this in turn
would mean a reduction in social security and a decline in public services. However, the
number who support the idea of reducing taxes on wages and salaries and placing a greater
emphasis on the taxation of property and capital, and on environmental taxes, is
approaching the same figure, in this case 70 %. This is most strongly supported by both
blue and white collar workers, the supporters of the left wing parties and those of the
National Coalition Party. The members of MTK, the Central Organisation of Agricultural and
Forestry Producers, along with the farmers, are against any change of taxation in that
direction.
A majority of people think that
competitive tendering in the public service sector is being taken too far if, as a result,
there is a lowering of the pay level and the job security of the workforce. This was the
opinion of 76 % of those interviewed. Just over one half, i.e. 53 %, regard competitive
tendering for public services as being unnecessary.
Excerpt from SAKs press release
October 26th 1998
National agreements remain the basis:
Labour market policies also formulated at European level
Helsinki (28.11.1998 - Juhani Artto)
Transnational collective bargaining has become increasingly common in Europe over the last
few years. In spite of this trend, national agreements will continue to underpin the
collective agreement system in Finland and other EU countries. European-level agreements
will complement national collective agreement systems.
Thus is the view taken by Heikki Pohja,
head of the Brussels bureau of the three Finnish central trade union confederations: SAK,
STTK and Akava, speaking at the end of October at the "European Trade Union
Movement" seminar in Helsinki.
"The situation differs from the 1980s
when European collective bargaining did not yet exist" notes Pohja.
The main players are the European Trade
Union Confederation (ETUC) and the employer organisations UNICE and CEEP. There are also
industry-based negotiations in which the trade union movement is represented by fourteen
International Trade Secretariats.
SAK, STTK and Akava are ETUC members and
actively participate in the evolution of international collective bargaining. The Finnish
national trade unions do likewise in the International Trade Secretariats of various
industries.
"Labour market organisations can
influence decisions taken in Brussels in many ways", Pohja emphasises. He has worked
in Brussels for nearly three years lobbying for the Finnish trade union movement.
Pohja considers it inevitable that
collective bargaining will become more international, although its legal basis in the EU
is still weak. Europe does not recognise the right to organise and take industrial action,
nor the right to conclude transnational collective agreements.
Pohja believes that it will take at least
four or five years before the first European collective agreement can be concluded, as
this requires amendments to the treaties establishing the EU. Making such amendments is a
complicated process.
However, transnational collective
bargaining is forging ahead regardless of the EU situation. According to a study by the
German Deutsche Bank, 70 per cent of multinational companies consider it likely that
international collective bargaining will be a feature of future industrial relations.
The study shows how far behind the times
the forest sector giants Enso (Finland) and Stora (Sweden) are in their merger, as they
plan to abolish staff representation in their top administration. The international trend
is quite the opposite: an increase is expected in transnational collective bargaining by
labour market partners.
A new idea by the engineering sector trade
unions will involve transnational collective bargaining. The International Trade
Secretariat for metalworker unions has recommended a common overtime limit for its member
organisations.
The German, Dutch, Belgian and
Luxembourger unions have figured out a common way to stipulate pay demands. The formula is
based on percentage increases in labour productivity and prices. The German IG Metall has
already started negotiating on this basis by demanding a 6.5 per cent pay rise. This
agreement by unions in four countries counters employer ideas of competing by reducing
wages and salaries.
There are also agreements in the
construction industry which are applied to working conditions in several countries,
although formally the agreements are not transnational.
Compared with national collective
bargaining systems, the present official European system is strange. The parties negotiate
only about matters proposed by the European Commission. If the parties can reach no
compromise, then the Commission may issue a directive on the matter. During the
negotiations each party speculates separately on what kind of directive - if any - the
Commission will wind up formulating if the negotiations are inconclusive.
Recently, the employers' confederation
UNICE blocked negotiations on an agreement concerning the right of employees to receive
information and submit their views. UNICE evidently believed that the Commission would not
issue a directive on the matter. However, the Commission subsequently proposed a directive
on "informing and hearing employees".
"The biggest incentive for both
negotiating parties is the fear of a directive. When the employers respond negatively to
our proposals, we apply pressure on the Commission", Pohja says.
Four years ago the employers miscalculated
in supposing that the Commission would not issue a directive on European Works Councils if
the labour market partners failed to reach a compromise. However, the Commission issued
the European Works Councils directive and, despite its weaknesses, this instrument
improves the ability of union activists to influence their multinational employers.
Pohja believes that European Works
Councils will be more significant in the future than they are now. Soon there will be more
than 500 of them with 30,000 active European staff representatives. The European common
currency will make it easier to compare working conditions in different countries.
Among the first concrete results of
European negotiations are agreements on parental leave, part-time work and working hours
in agriculture, navigation and railways. "When the will exists, the partners can
reach significant agreements within a few weeks or months" Pohja says, referring to
the most successful negotiations.
The attitude of employer organisations
towards European collective bargaining varies from one industry to another but is usually
quite reserved.
Wages and salaries are not normally on the
agenda of the Ministers of Finance, but in exceptional situations even this is possible.
In Pohja's opinion, trade union participation in pay discussions is as natural on the
European level as it is at national level.
At the seminar in Helsinki in late
October, ETUC Information Officer Wim Bergans compiled a long list of issues upon which
the trade union movement would like to have European negotiations. These include
reductions in working hours and their reorganisation, life-long learning and employment
policy. The goal is also to strengthen the role of trade unions in European economic and
monetary policies.
New book discusses long-term trends in
working conditions: a hastier work tempo and an increase in unpaid overtime but new
opportunities for personal development
Helsinki (20.11.1998 - Juhani Artto) Last
year 37 per cent of wage and salary earners in Finland felt they had good opportunities
for personal development at work. Twenty years ago 28 per cent of employees felt the same
way. This is one of the positive trends in working life shown in surveys conducted by
Statistics Finland. In its new book this institution compares the working conditions of
wage and salary earners in 1977, 1984, 1990 and 1997.
What are the most significant changes?
The high unemployment caused by the
1990-1993 recession has strongly influenced the importance attached by employees to their
work. On the eve of the recession 25 per cent of employees considered their work to be
"very important and significant". By 1997 this proportion had risen to 40 per
cent.
The change is well explained by two other
figures. 37 per cent of wage and salary earners in 1990 still thought they had good
chances of finding another job. By last year, however, this had fallen to 23 per cent. The
proportion of those who had changed their jobs in the last five years fell from 42 to 34
per cent.
The proportion of part-time workers (fewer
than 30 working hours per week) has increased only slightly. In 1997 it was 11 per cent
among women employees and 5 per cent among men. Those in temporary jobs last year
accounted for 18 per cent of wage and salary earners. In 1990 this figure was 15 per cent,
while in 1984 it was only 11 per cent.
In the early stages of the 1990-1993
recession many union leaders and activists feared that the rate of union membership among
wage and salary earners would fall, but in fact the opposite has happened. In 1990 the
organising rate was 72 per cent, but by 1997 it had risen to as much as 79 per cent, which
is one of the highest rates of membership in the world.
It is interesting that at the same time
the proportion of those who believe they share common interests with their employers has
increased from 56 to 67 per cent.
However, in 1984-1990 and 1990-1997
differences of attitude at the workplace grew clearly in all categories. Last year 69 per
cent of wage and salary earners admitted differences of opinion with their supervisors, 68
per cent with colleagues and 56 per cent between staff groups.
Increasing competition in the business
world is clearly reflected in the use of time and motion studies to appraise of
productivity. Last year 61 per cent said that their employers have increased productivity
appraisal, while in 1990 this figure was 46 per cent. One surprising finding is that the
proportion of those receiving productivity bonuses was higher in 1990 (26 per cent) than
in 1997 (21 per cent).
Access to opportunities for additional
vocational training has steadily increased. 24 per cent of workers enjoyed such
opportunities in 1977, 31 per cent in 1990 and 35 per cent in 1997. However, last year
only 9 per cent considered their chances of promotion to be good, compared with 10 per
cent in 1990.
In 1997 more than half of the respondents
felt that they had a lot, or rather a lot of influence on working methods, workplace
rhythm and working arrangements. When asked about their influence on the content of their
work, on the division of labour, on retooling and on choice of colleagues less than half
gave positive responses. In all categories except rhythm of work employees feel that their
influence has increased both in the 1980s and in the 1990s. The feeling of employee
influence on work rhythm increased from 1984 to 1990 but was slightly below the 1984 level
in 1997.
There is a growing sentiment of having too
few employees to perform the given tasks. In 1990 this feeling of understaffing was shared
by 44 per cent of employees, but the figure was 52 per cent in 1997.
It is slowly becoming more common to have
a female supervisor. In 1997 56 per cent of female employees and 9 per cent of male
employees were in such a position. It is also becoming gradually more common for employees
to have at least partly supervisory roles. In 1997 the proportion of workers in such
employment was 32 per cent.
The studies reveal that despite all
efforts, employees feel that their physical work environment has deteriorated. They report
worsening extremes of heat and cold, more disturbance at work, more dust and more noise.
Workers increasingly have to perform repetitive limited movements. Hardly any category of
attitude towards the physical work environment shows improvement.
The studies also included questions about
working hours. Even though employees have increasing freedom to choose the time of
starting and finishing their daily shift, in 1997 fewer employees feel that there are
enough breaks than thought so in 1990.
The proportion of those doing unpaid
overtime has grown surprisingly rapidly. In 1984 it was 20 per cent, but by 1990 this had
already reached 30 per cent and last year it stood at 34 per cent. The authors of the book
regard the trend as clear evidence of a deeper commitment to work and an intensification
of work.
In 1997 a third of respondents complain of
being very much or rather much in a hurry at work. This problem has worsened steadily. In
1977 only 18 per cent of wage and salary earners made this complaint.
In 1997 a large majority, 62 per cent, say
that the tempo of work has accelerated over the last few years. In 1984 the same was said
by 46 per cent of the sample. Over the same period the proportion of those reporting very
or rather heavy mental stress at work has grown from 46 to 51 per cent.
When asked about positive factors
affecting their job satisfaction, independence at work scored best. A majority also
referred in this connection to variety of work and morale at the workplace. Almost two
thirds think they have an interesting job.
Of factors bearing negatively on job
satisfaction, haste is clearly number one, followed by low pay and lack of promotion
prospects.
Union activists achieve historic breakthrough
in Finland: Two regional
shop stewards now represent 1,500 McDonald's employees around the country
Helsinki (09.11.1998 - Juhani Artto)
McDonald's and its franchisees have 4,000 employees in Finland. Recently its union
activists achieved a historic breakthrough. After difficult negotiations the McDonald's
company in Finland signed an agreement recognising two regional shop stewards who together
cover the whole country.
They represent 1,500 workers at 30
McDonald's restaurants. Employees of the 55 franchised restaurants are not covered by the
agreement.
The new shop steward system divides the
country into two parts. The Helsinki Metropolitan Area and surrounding province of Uusimaa
forms one region, while the rest of the country is the other. The first shop stewards are
26 year-old Joni Maijala from Helsinki and 28 year-old Petri Puumalainen from Vaasa. The
average age of McDonald's employees is 21.
Earlier this year Puumalainen became the
first health and safety representative at the Finnish McDonald's, after being
democratically elected by the company's employees. He also represents McDonald's Finnish
employees in the European Works Council, which met last Summer in Greece. According to
Puumalainen, besides him, only the Swedish and French employee representatives had a trade
union background.
In EU countries McDonald's and its
franchised outlets have some 300,000 employees, while globally the figure is 1.5 million.
To attend to his new duties, having been
recognised by the employer, Puumalainen has about 60 hours of paid leave every three weeks
and a computerised office supplied by the company.
The short working hours of part-time
workers have already long been one of the problems which Puumalainen and his fellow union
activists have sought to tackle. "Employees want security instead of random work
schedules and the standby principle", Puumalainen says. "Lack of security has
been one the central motivations for many to take an interest in getting organised."
The Hotel and Restaurant Workers' Union
estimates that the number of workers with permanent full-time jobs in the fast-food chains
can be counted in tens rather than in hundreds.
In Finland McDonald's joined the
employers' confederation soon after settling in this Northern European country with a long
tradition of strong trade unionism and generally constructive industrial relations. In
most other countries the multinational prefers to stay unorganised.
Another fast food chain is Carrols, which
is owned by the Kesko group, a FIM 35 billion (1 FIM = 0,20 USD) wholesaler of foodstuffs,
clothing and a very broad range of other products. Carrols operates 49 hamburger
restaurants in Finland, seven in Russia and four in Estonia. Carrols employees have a
regional shop steward in the Helsinki Metropolitan Area. Riikka Kraft is the current post
holder.
Jorma Kallio, President of the Hotel and
Restaurant Workers' Union, says that there has also been some progress at Hesburger,
another domestic fast-food chain. Employees have begun to organise and the union is
currently negotiating with Hesburger on how to define the various regions covered by the
shop stewards.
The Hotel and Restaurant Workers' Union
has 55,000 members, 18,000 of whom are under 30 years of age.
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