Business lobby wants general minimum wage in Finland

minimum wage1The Federation of Finnish Enterprises, a lobby group advocating on behalf of entrepreneurs and businesses, wants to see Finland introduce a national minimum wage. The group suggests a new minimum would be lower than the lowest collectively-negotiated sector-based minimum salaries.

Finland currently does not have a minimum wage. Instead, workers are protected by sector-by-sector agreements on terms and conditions that generally include minimum salaries. Now the business lobby wants a new system with a national minimum wage and an end to legally-binding sector-based agreements.

“The level of a minimum wage would be slightly lower than the lowest collectively-agreed minimum, so that those in difficult positions in the labour market could also find work,” said Raumo Vanhanen, director of the Federation.

His organisation would also propose abandoning the current system whereby agreements between unions and employers’ representatives bind every company operating in a particular sector.

“We need reforms in order to improve the competitiveness of Finnish labour,” said Vanhanen. “The generally binding agreements hamper the competitive possibilities of smaller Finnish businesses especially, and at the same time their chances of providing employment.”

Vanhanen points to other European countries as examples, saying that Finland’s sector-based system is an exception. The suggestion was not greeted warmly by the trade union movement.

“If the labour market is too rigid in the federation’s view, then surely it’s very rigid to have the same minimum wage in every sector?” asked Riku Aalto, chair of the metalworkers’ union.

Source: YLE

http://yle.fi/uutiset/business_lobby_wants_general_minimum_wage_in_finland/7181448