PAM seeks 250 euro pay increase in monthly wages during two-year period – strengthened coordination among SAK-affiliated unions

SAK-affiliated trade unions announced Wednesday morning that in this collective bargaining round they seek pay rises that truly compensate for lost purchasing power.

PAM and the other SAK-affiliated unions seek pay rises of 6 percent or at least 150 euros per month for full-time work in the first year, and pay rise of 4 percent or at least 100 euros in the second year.

—The impact of price rises is not the same from everyone. This flat-rate policy will ensure that everyone gets the required pay rise, and it allows for the special circumstances of low-income employees, said Service Union United PAM President Annika Rönni-Sällinen.

PAM’s pay rise claim was public already in the last round of collective bargaining and members have hoped for more openness about the aims according to Rönni-Sällinen. She welcomes the strengthened cooperation among unions.

—Employers have increased cooperation year upon year. So, we think it’s important for us to do the same.

Collective bargaining in the service sectors begin at the turn of the year. Commerce sector collective agreements are in force until the end of January. Collective agreements in for example hospitality, property services and private security are in force until the end of March.

Recover purchasing power

The union presidents point out that the Orpo-Purra government’s cuts to benefits and increase of value-added-tax have further eroded purchasing power. Low-income employees’ wage rises will translate directly into higher consumption, providing a much-needed boost for Finland’s economy and domestic demand. This would be important also for service sector employers.

—Besides inflation, low-wage earners are affected by the governments cuts to social benefits, which has made getting a decent wage ever more important, Rönni-Sällinen emphasises.

Compensation for increased risk

The assault on employment terms and cuts to social security in the last year have shifted risk to employees, and they should be compensated through higher wages. In service industry, part-time workers have already been impacted by for example the removal of the protected amount and cuts to housing allowance. In addition, the government still prepares further erosion of workers’ protections, for example, making firing workers easier.

Union presidents say it’s only fair that increased risks to workers is compensated through sufficient pay rises.

Read SAK’s press release about the unions’ pay claim

Picture: Marjo Pihlajaniemi / SAK