No solution in sight to govt, trade unions conflict

As a major union newly joined the labor actions, there was no solution in sight on Tuesday for the conflict between the three-party alliance government and the trade unions.

Prime Minister Juha Sipilä told the media on Tuesday afternoon that solutions offered to him in various meetings have not been good enough. He said he would only accept a suggestion that would offer such a positive employment impact that would match the governmental plan to make dismissals easier in companies with less than 10 workers.

On Tuesday evening the service workers union PAM said its 50,000 members would join labor actions against the government next week. Ann Selin, the union's chairperson, made the statement right outside the prime minister's residence after a meeting with Sipilä.

The Industrial Union is to begin on Thursday a three-day walkout mainly in the wood sector.

Local media has reported several behind the scenes meetings between Sipilä and union leaders on Monday and Tuesday. Finnish analysts have discussed the "brinkmanship" shown by Sipilä.

Timo Seppanen, a news analyst for the national broadcaster Yle, said it is highly unusual that with elections just half a year away, a government allows the situation to escalate through controversial bills in this way.

Seppanen said that the situation "gives the impression that Sipilä is ready to put into practice his labor policy goals without caring about the repercussions."

But Seppanen continued saying that the whole truth may not be that. The analyst raised the question whether the suggestion about weakened job security is actually a bluff that Sipilä uses to goad the unions to make concession at least on something else.

Seppanen noted that in 2015 Sipilä had threatened the unions with five legislative measures. After a confrontation and major demonstrations, the unions agreed on cutbacks in benefits and Sipila did not proceed with the legislation plans.

Seppanen speculated that the scenario of 2015 could be revisited now, if the unions work out a compromise that Sipilä could accept. But the alternative remains that Sipilä may end up having to proceed with the legislation, he said.

Veteran economist Sixten Korkman and professor of labor law Seppo Kosklinen dismissed the claims that the unions are now demanding a veto right to block legislative plans.

"The unions have accepted in recent years worsening of unemployment benefits and other measures. But now their limits were exceeded," the professors said.