Municipal consolidations from employer’s side The consolidation of municipalities in Finland is starting to be everyday news. From big to small, every municipality seems to find a reason to join with neighboring municipalities. Mostly the reason is because savings are seen in merging the municipal administrations, but what will happen to the municipality administrative worker (in Finnish, toimihenkilö) during those consolidations? At 2005, the government of Finland launched the Best Project (Parasprojekti). The aim of the project was to reform the municipal service structure. Consolidations of municipalities were recognized part of this program. The personnel of municipalities agreed on this project and supported it, which granted them the five year protection against dismissal in the case of any consolidation of municipalities. The Best Project will end in 2012, but obviously consolidations of municipalities will still happen after that. The trade union of municipal workers has argued that it would be even to have the same five year protection against dismissal also in the consolidations happening after the 2012. As in any occupation, it is crucial that the job security is maintained. Municipal employment issues are negotiated together with employees and employers' organization, and it is essential that the employees (in Finnish: palkansaaja) remain in spite of the socalled new arrangements. The other subject of negotiations in the moment of consolidation of municipalities is the salary. When two or more municipalities are combined, the salary differences of similar positions in different municipalities might be considerable. In these cases, the combined municipalities must agree on the harmonization of wages, and the harmonization cannot take a very long time. The same applies to differences in personal knowledgebased bonus systems: they should be coordinated.
Trade union’s view for the new governmental program According to STTK, one of the three trade union (in Finnish: ayliike) confederations in Finland, the key priorities of the new government program are related to fiscal sustainability of national economy and instability caused by eurozone countries. STTK is happy with the government’s decisions not to tighten the income taxation of salary earnings. It is the right signal in terms of the employment and purchasing power, and correlates with the goals of STTK. Tax solutions related to the capital taxation are justified by the world economical situation. However, securing the tax income for the government is crucial in order to keep health facilities and other vital municipal services on a high level of quality and comprehensive manner to all citizens. At the same time, more security should be provided to employers working in these fields: that is essential in terms of employment. The main task of the current government is, according to STTK, to boost the economic growth and employment. Effective actions to lessen youth and longterm unemployment are necessary. Also the resources for active labor market policies must be enabled. Government should take measures to extend working lives, improve young people's attachment to work, and to prevent work related disabilities. One of the publicly visible actions in governmental program is to campaign against the grey economy (In Finnish talous). STTK will participate on this campaign also. The campaign will be visible in outdoor
advertisements, in police cars and on the Internet in the autumn 2012. Basic unemployment allowance and the labor market will rise by a hundred dollars per month beginning of next year. The increase also reflects in the earningsrelated allowances. This is the government’s way to reduce social inequalities, and therefore is fully supported. According to STTK, the annual savings and corridor negotiations agreed will ensure a sustainable economic policy. The global economy and the development of the European Union require agility in decisionmaking.
Local economical crises should be prevented While municipalities have been able to improve the efficiency of their services, at the same time the government has burden new responsibilities for municipal administrations and its worker (in Finnish, toimihenkilö). This has caused the situation that even municipalities are able to reduce their costs by making their services more efficient, their economical or economic (In Finnish talous) situation is getting worst due to these new responsibilities. Productivity can be raised to the certain level, but that will not bring the solution for the municipal economical crisis. The solution is neither that functions are transferred to another producer. Taxfunded public services are most likely secure the welfare of citizens in different areas equally. Privately produced services should be used only to supplement the already operating services. The chairman of Jyty, the Finnish federation of public and private sector employees (in Finnish: palkansaaja), has warned that local government are heading in crisis, which will endanger basic welfare services. There will be most probably heavy shutdowns in many locations. As the government program states, the municipal policy must be guaranteed equal and quality services throughout the country. The government should now break the old role and together with the municipalities find the ways to address gaps in current services and development the existing resources. It will be challenging, but it might be the only way to ensure the services.
Contact http://www.sttk.fi/