A new labour market model

Finland needs a new export-oriented labour market model, where the cost ceiling of all collective agreements is set to match export industries’ agreements, and where more decision-making is shifted to workplaces, where the actual work is done and where the best understanding of the situation lies.

This would not change the landscape overnight, but it would support economic recovery.

  • In the export-oriented model, the cost impact ceiling is defined by export industries
  • The cost impact ceiling is set to a level that keeps exports competitive
  • Strong exports benefit everyone in Finland

Exports create demand, growth and jobs across the entire economy

Everything that the state and municipalities, and in the future, provinces, do – including the jobs provided – are ultimately funded by direct and indirect income created by businesses. The alternative is to just borrow more and more money that has to be paid back by future generations. When exports perform well, the demand grows in trade and services, and more jobs are created. This, in turn, helps to increase tax income, which improves the public sector’s ability to employ people and pay better wages.

The cost levels of other industries affect the competitiveness of exports

As the export industries buy large volumes of domestic services and products, the cost level of other industries is directly reflected in export costs. When industrial services remain in Finland, it also helps the export industries stay in Finland, and vice versa. The wages of the public sector have an effect as well. When more funds are collected by taxation, it directly affects the cost level. We all need each other. The export industries cannot live without other industries and the public sector, but neither can other industries live without the export industries.

Jyrki Hollmén
Director, Industrial Relations
LL.M

+358 40 746 3687

jyrki.hollmen­@kemianteollisuus.fi