Helsinki (12.06.2013- Heikki Jokinen)

Could the German labour market model be an example for Finland was the question put forward in a seminar organised by the Trade Union Pro and Metalworkers' Union. "If you want to create social problems I can recommend our model" said visiting speaker, director Wilhelm Adamy from the German trade union confederation DGB.

He pointed out how the creation of mini-jobs and allowing low salaries has caused increasing poverty in spite of economic growth. "The share or proportion of those on low income has also been growing amongst educated people. Lowering pay was expected to stimulate employment opportunities for those with little education or training, but this has not happened."

There are now almost two million workers in Germany with an income of less than five euros per hour. "Low salaries endanger innovations and human resources mobilisation. This is not the right strategy for a developed industrial country. Priority should be geared towards structural economic policy, not labour market policy", Adamy insists.

Jorma Antila, the research chief of the Metalworkers' Union agreed. "We are of the same opinion. The most important thing is to take care of competitiveness. Does it really demand jobs with low salaries?"

Increasing poverty is a real danger

"There is a link between the quality of working places and economic growth. If we are to tolerate and accept a low income class of people, we have to support them in any event. The Nordic countries have shown that we can reach the goals by other means.", says researcher Merja Kauhanen from the Labour Institute for Economic Research.

She also went on to say that labour market models are part of a broad social structure and tradition. It is not possible to transfer one labour market model directly from one country to another.

"Would the employers who are longing for a German model to be adopted by Finland also take on board the German Codetermination Act", asks Pro director Markku Palokangas. "If we want to learn from the German model, we should learn from the export know-how of the companies and working hours banks. Finland should focus on our strong points like good education."

"The fact is that for the people on low income today it is difficult to survive in the big cities. There are proposals for lower salaries for old, young or new employees. This spiral of death is no solution."

Antti Rinne, the chairperson of Pro said that during the last four years 65,000 jobs have disappeared from Finnish industry. Low salaries and more people dependent upon social welfare are no solution. "Those who invest and innovate are surviving. From the point of view of a wage and salary earner the German model would mean increasing poverty".