In a nationally-broadcast speech on Wednesday evening, Prime Minister Juha Sipilä reiterated his call for labour market groups to find alternatives within the collective agreements framework that would remove the need for harsh austerity measures proposed by his government. The moves aim to improve Finland’s international competitiveness in the hope of boosting exports, investment and jobs creation.
In the first such address by a premier in more than two decades, Sipilä took to the television and radio airwaves to directly speak to the public about what he described as the dire state of the national economy and the need for painful cuts. His expected appeal to labour market groups came near the end of the 15-minute speech.
“I call once again on the sides in the labour market. Instead of means that have been shown to be difficult, such as [cutting] Sunday bonuses, find easier solutions within the collective agreement. There are still a few days before Parliament begins to consider the measures proposed by the cabinet. The entire package presented by the government could be replaced by extending the work day by about 20 minutes or by giving up on bonus holiday pay,” Sipilä said in a pre-recorded statement filmed at his official residence, Kesäranta.
The premier stressed that the measures chosen by the centre-right government are tougher than those agreed between employers’ and workers’ groups so far. At the same time he asserted that pushing through the details of the plan are not a matter of prestige for the cabinet. However he said there could be no haggling over the goals of the proposal.
Mandate from voters
Sipilä emphasised the mandate for change given to his three-party government by voters in last spring’s election. In a subtle dig at the previous cabinet led by current Finance Minister Alexander Stubb, he said that just waiting and taking on more debt would no longer work.
“Now we really have to bring about change and not worry about style points. Even some of the opposition support these reforms,” Sipilä noted.
The Centre Party leader pledged to carry out the reforms in as fair and egalitarian way as possible and to listen to the views of various players in the labour market as legislation is revised.
“Ireland and Portugal have cut far more”
Sipilä compared Finland’s current straits to those of the European countries worst hit by the financial crisis. He argued that for instance Ireland and Portugal have made much harsher decisions than those now proposed in Finland. The prime minister also reminded his listeners of how eager some Finns were to provide advice to Greece.
“We were in the front lines of those advising the Greeks about what they should do. Now let’s take that advice into practise ourselves. We can’t allow ourselves to get into a situation where others would decide on our issues for us,” Sipilä warned.
Last week the government unveiled sharp austerity measures such as reducing extra Sunday and overtime pay, implementing unpaid sick days and shortening annual holidays. They have provoked a furious reaction from many trade unions, who argue that they undermine the long-held Finnish tradition of negotiated collective agreements between labour and management groups.
Sipilä’s speech came some 36 hours before widespread industrial action and demonstrations that are expected to shut down much of the country on Friday.
Compassion for refugees must be found
At the beginning of the address, Sipilä spoke briefly about the flood of refugees into Europe that has accelerated during the summer. He said that despite Finland’s own difficult economic situation, Finns must find human compassion within themselves. The system needs more resources to process asylum applications and speed in repatriating those whose applications are turned down. But those who are approved must be able to feel safe in Finland.
“If you feel that you want to do more in this regard yourself, then contact the Finnish Red Cross for instance. Many of you have already acted, and thank you for that,” Sipilä added.
