Good News from Wed, 26 August, 2009:

A collective labour agreement in Technology industry helps the Finnish economy to recover

Confederation of Finnish Industries, EK, considers the results of the negotiation on the collective labour agreement between the Federation of Finnish Technology Industries, and the Metalworkers' Union as an important initiative during current economic conditions. The negotiations were finalized on Thursday.

The Confederation states that what is needed during a period of recession are reduced costs rather than general increases in wages. The agreement together with previously made decisions on wage levels denote the decline of total labour costs in the industry next year. According to the EK board this is crucial for strengthening employment and competitiveness within the industry.

The new three-year deal is to enter into force in October and will result in a 0.5 per cent pay rise with later possible raises to be negotiated separately.

According to EK this is an important means of adjustment during a period of recession. The agreement is to affect around 140,000 employees in the machine and metal industries as well as the electronics and electrical industries.