Contents Akava 2012 3 Akava and the labour market 4 Extending working careers 10 Wellbe

2. Contents Akava 2012 3 Akava and the labour market 4 Extendingworkingcareers 10 Wellbeing at work15 Salaries19 Taxation of employees24 Education28 Entrepreneurship31 Union membership33 Thispublicationcanbefound on the Internet at www.akava.fi/en/ Printing house: Kirjapaino Uusimaa, 2012 ISBN: 978-952-5628-52-4

3. Akava 2012 Akava, the Confederation of Unions for Professional and ManagerialStaff in Finland, is one of the threeindependenttradeunionconfederations in Finland Akava’s 35 affiliateshave a totalmembership of 573,000 includingapprox. 107,000 studentmembers Akava’sunionisationrate is about 70 per cent. 27 per cent of tradeunionmembers in Finland are Akava members. Akava represents the interests of professionals and managerialstaff and others with a highlevel of education. Akava overseesitsmembers’ economic, professional and other common interests.

4. Akava and the labour market Three out of four Akava members are in permanent full-time employment. Atypical work is common among young women. In 2010, 39,000 Akava members were employed on a fixed-term employment contract. Of these, 78% were unable to get permanent employment, though they wanted it. 50% of highly educated individuals work in the private sector. 29% are employed by local authorities and one in ten is employed by the government. 8% are entrepreneurs or self-employed. Akava members mainly serve in expert, teaching or managerial positions. The most typical for men are senior expert positions, and for women senior expert positions in teaching. In all age groups, the proportion of men serving in managerial positions is larger than that of women. At the end of 2010, 46,000 people with tertiary-level education were unemployed in Finland. The unemployment rate for this group was 4.6%. Since 1994, the unemployment rate among those who have completed basic and upper-secondary education has fallen faster than that among the highly educated. Long-term unemployment is on the increase. The average length of time that highly educated individuals are unemployed is a total of 40 weeks. Approximately 5,400 highly educated Akava members had been unemployed for over a year in October 2011. Employment rate among recently graduated The employment rate among those who graduated from university in 2005 was relatively good in 2010. In some sectors, people were clearly or slightly overqualified for their jobs five years after graduation. The situation was the reverse in a number of professional sectors, in which work tasks are felt to be too demanding.

5. Unemploymentrate 1990–2010 byeducationallevel, % % (67,000) Basic education only Upper secondary (111,000) All (224,000) Lowestlevel of tertiaryeducation and lowerdegreelevel (35,000) (12,000) Higherdegreelevel of tertiaryeducation & doctorate Source: Statistics Finland, Labour force statistics; Akava’s own estimation

6. Unemployed Akava members in selectedfields, March 2012 Excludingpersonslaidoff, situation31.3.2012 Source: Statistics of Ministry of Employment and the Economy

7. Employmentratebyage, 2010 Highly educated All wage and salary earners Persons with at least a master’sdegree Source: Statistics Finland, Labour ForceStatistics2010

8. Employmentrateamongolderagegroups, 2000–2010 55–59 years of age 60–64 years of age Persons with at least a master’sdegree Source: Statistics Finland, Labour ForceStatistics2010

9. Employmentrelationships in Finland in 2010, % Akava members Allwage and salaryearners Source: Statistics Finland, Labour ForceStatistics2010

10. Extending working careers Over 70% of Akava members expect to remain in employment until they are at least 63 years of age. The employment rate of highly educated individuals over the age of 60 was approximately 20 percentage points higher than it was for other employees in 2010.   6% of highly educated individuals aged 58-62 are receiving a disability pension or are unable to work due to a long-term illness; the corresponding figure for all employees was 20%. In 2010, the average age of those retiring on an earnings-related old-age pension was 63.4. One in three retired people retired on a disability pension at an average age of 52. Due to this, the overall retirement age was 59.6. Mental health problems were the most common reason for highly educated individuals retiring on a disability pension. Job security, reducing time pressure and improving managerial and supervisory skills in particular are all factors that make it easier for people to cope at work. The majority, 63%, of Akava members are prepared to start a new job after receiving rehabilitation if the alternative is to retire on a disability pension. 60% of Akava members would be prepared to continue working after 63 years of age if they were to receive more annual leave or other time off. Almost 70% of Akava members are very or fairly willing to work after they retire on an old-age pension. If the funding of pensions has to be changed, Akava members would prefer their retirement benefits to remain the same and to pay more in employment pension contributions.

11. Personsretiring in 2010 and 2011 with a pensionbased on theirownworkhistorybypensionbenefit • In 2009 for the firsttimemorepeopleretired on a normalold-agepensionthan on a disabilityor an unemploymentpension. • In 2010 one in threeretiredpeopleretired on a disabilitypension at an averageage of 52. • Averageage of thoseretiring, years: 2009 2010 2011 • Old-agepension63.4 63.5 63.5 • Unemploymentpension60.3 60.9 61.7 • Disabilitypension 52.1 52.0 52.1 • All59.5 59.6 59.8 Source: Statistics of Finnish Centre of Pensions

12. Personsretiring on disabilitypension in 2001 and 2011, by main diagnosis • Both in 2001 and in 2011 approx. 23,000 personsretired on a disabilitypension. • In 2011 almostone in three of thesewasdue to a mentaldisorder. Source: Statistics of Finnish Centre of Pensions

13. Averageintendedage of retirement of Akava members • Three in fourpersonsthinktheywillstay in working life at leastuntil the age of 63. • The employeepensionschemereform of 2005 hasachieved the desiredresults. Sources: *) Akava MemberOpinionPolls **) Statistics Finland, Quality of Work life Survey ***) Surveyby TNS Finland commissionedby Akava, autumn2010

14. Factorsenabling Akava members to remainlonger in working life Total number of respondents: 1,094 Source: survey by TNS Finland commissioned by Akava, autumn 2009

15. Wellbeing at work The average working week of Akava members in full-time employment was 40.6 hours in their main job. The working week of one in ten Akava members, and of one in five who are managers and senior officials, was longer than 48 hours. Akava members did more overtime than the average for all employees, and often without compensation. The weekly overtime hours of one in five Akava members added up to one working day, i.e. 7.4 hours. 7% of these received no compensation for the overtime. 15% of Akava members were compensated for the overtime in the form of money or free time. The working hours of senior employees are monitored less often than those of other employees. A total of 35% reported that their working hours were not monitored in any way. Senior employees experience more mental stress as a result of their job than other employee groups. 43% of senior employees experience rather a lot or a lot of mental stress as a result of their job. One in two experiences time pressure in the job fairly often or very often. Manual workers are more familiar with health and safety issues and the health and safety organisation than other employees. 24% of senior employees are not sufficiently familiar with health and safety documents and 27% believe there is room for improvement in the operations of the health and safety organisation. 35% also state that supervisors are not active enough when it comes to health and safety.

16. Experience of mentalstress Experience of timepressure Source: Finnish Institute of OccupationalHealth 2009

17. Overtimework in 2010 Akava members Employer Allwage and salaryearners Socio-economicgroups Wage and salaryearnersworkingfulltime; overtimecompensation in money orfreetime Source: Statistics Finland, Labour ForceStatistics2010

18. Personswhoworked at least 48 hours/week, 2010 Akava members: Employer: Position in organisation: Wage and salaryearners in full-timework Source: Statistics Finland, Labour ForceStatistics2010

19. Salaries Akava members earned EUR 4,050 a month on average, with women earning EUR 3,600 and men earning EUR 4,520 a month in 2010. Women earn 80% of what men earn. The average monthly salary of all employees was EUR 3,090 in 2010. 50% of Akava members earned EUR 3,590 or more a month, with one in ten earning less than EUR 2,420 and one in ten earning more than EUR 5,930 a month. The average starting salary of an Akava member is EUR 3,270 a month, increasing to EUR 4,490 towards the end of the working career. Private sector middle management and corresponding experts in Finland do badly in European salary comparisons. Their gross salary is 84% of the salary of people in corresponding positions in western Europe. The corresponding comparison figure for employees other than manual workers (i.e. for approx. an average Finn) is 92%. The high price level and steep tax progression in Finland weaken the purchasing power of the salary of middle management and those who carry out corresponding expert tasks to 71% compared with western European countries. The corresponding comparison figure is 78% for employees other than manual workers.

20. Total earnings in 2010 Distribution of total earnings(without bonuses) F10 2,420 F90 5,930 Akava members All wage and salary earners in Finland F10 1,940 F90 4,500 Wage and salaryearnersworkingfulltime; totalearnings in tableincludebonuses *) From the beginning of 2010 the universitysector is included in the privatesector (privateenterprises) Source: Statistics Finland, Structure of Earnings, 2010

21. Total earnings of wage and salaryearnersbylevel of education in 2010, EUR/month Wage and salaryearnersworkingfulltime; totalearningsincludebonuses Source: Statistics Finland, Structure of earnings, 2010

22. Grossearnings per year in privatesector 2011Western Europe = 100 1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt 2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

23. Relative purchasing power of salaries in private sector 2011 Western Europe = 100 1) Comparable to Finnish employees with salaries of approx. 2,950 EUR/month; Grade 8 = Graduate/Administrator in Global job value framework of Watson Wyatt 2) Comparable to Finnish employees with salaries of approx. 5,290 EUR/month. Grade 14 = Middle Managers Source: 2011/2012 WWDS Global 50 Remuneration Planning Report

24. Taxation of employees The Government is supporting the framework agreement reached for the labour market through reduced taxation for employees in 2012. The net salary of an employee covered by the contractual pay increases and changes in taxation who is earning EUR 3,000 per month will rise by 2.8%, or EUR 60, in 2012. The net salary of someone earning EUR 4,000 will rise by 2.7%, or EUR 71. One in five full-time employees in Finland is an Akava member. These employees earn a quarter of Finland’s entire wages and salaries bill, and pay one third of taxes and social security contributions paid by employees. Akava members account for 42% of state income taxes paid by employees. The income tax rate of someone with a monthly salary of EUR 3,000 is 29%, while an income of EUR 4,000 is subject to 34% income tax. Finnish employees have high and progressive marginal tax rates. The marginal tax rate indicates what proportion of additional income is collected as tax. At a salary of EUR 2,100, nearly 45% of additional income is collected as tax. The marginal tax rate is close to 50% for a monthly salary of EUR 3,400, and almost 57% when the salary exceeds EUR 6,100.  In international comparison, the high and progressive marginal tax rates are evident in the fact that while low-income employees in Finland are taxed moderately by European standards and employees with average salaries are taxed near the European average, those who earn more than average are taxed quite harshly.

25. Pay and taxes: Akava members and otherwage and salaryearners Employeeswhohaveworked at least 6 monthsfulltime with incomeover12,302 EUR per year Source: Statistics Finland, IncomeDistributionStatistics2009

26. Averagepersonalincometax for single wage and salaryearners in Finland and in other Western Europeancountries in 2011, % Finland Other Western European countries*) *) Netherlands, Belgium, Spain, United Kingdom, Italy, Austria, Norway, France, Sweden, Germany, Switzerland and Denmark. Excluding Estonia. One-person household. Source: Taxpayers’ Association of Finland, International WageTaxSurvey2011

27. Averagepersonalincometaxrate in 2011 for incomeof 4,720 EUR/month One-person household with income of 59,000 EUR per year Source: Taxpayers’ Association of Finland, International WageTaxSurvey2011

28. Education In Finland, the proportion of people aged 25-64 with tertiary-level education has increased by 23 percentage points in 35 years. However, one in five remain with no educational qualification beyond compulsory education. 39% of Finns aged 25-34 have completed a lower or higher degree in tertiary education. This ranks Finland near the middle among OECD countries. The number of students in relation to teachers in universities has risen by around 70% in the period 1985-2009. 61% of university students and 59% of polytechnic students worked in 2009. The average duration of studies is 6.2 years in universities and 4 years in polytechnics. Nearly half of Akava members state that they need training to maintain occupational skills. 31% of employees with a high-level education attended non-degree training in 2011. For 4%, the training was not work- or occupation-related. Every tenth employee with a high-level education participated in work-related training either entirely or mostly during their own time. Responses of Akava members to questions regarding occupational skills and self-development: • 90% feel that employers should place more emphasis on maintaining and developing employees’ occupational skills. • 14% feel that being busy at work does not present any problem whatsoever when it comes to renewing occupational skills. • 30% are of the opinion that no suitable continuing education is available. • 10% feel that their competence is outdated and no longer meets the requirements of working life.

29. Persons with higher-degree level education in Finland and in some other countries in 2009 25–64 years of age 25–34 years of age 55–64 years of age In addition to university and polytechnic degrees, higher-degree level tertiary education also includes some lowest level tertiary education qualifications, such as technicians and diplomas in Business and Administration Source: OECD, Education at a Glance 2011

30. Akava members and total labour force in 2010byeducationallevel, % Doctorate Highest level academic degrees of licentiate and doctorate (scientific post-graduate degrees) Higher-degree level tertiary education Mainly higher university degrees (master’s level), specialist’s degrees in medicine, graduate engineers Lower-degree level tertiary education Mainly polytechnic degrees and lower university degrees Lowest level tertiary education Vocational college education. Examples of vocational college qualifications include Technician Engineer, Diploma in Business and Administration and Diploma in Nursing Upper secondary education Gives general eligibility for tertiary education Primary & lower secondary education Source: Statistics Finland, Labour ForceStatistics2010

31. Entrepreneurship About 24,000 Akava members, or 6% of the membership, are entrepreneurs and self-employed persons on a full-time or part-time basis. Over one third of these are women. Around half of Akava’s entrepreneurs operate in the field of social welfare and health care. 62% of Akava’s entrepreneurs are full-time and 38% are part-time self-employed persons and entrepreneurs. Independent work and fulfilling one’s dreams are motivating factors in entrepreneurship. The greatest obstacles to entrepreneurship have to do with financial livelihood. Entrepreneurship is seen as a natural step in career progression or as a way of becoming employed. Akava’s self-employed and entrepreneur members are more satisfied with their work than members who are employees. The key challenges faced by highly educated entrepreneurs are the differences in the social security benefits between employees and entrepreneurs, for example in unemployment security and sickness security, and reconciling work and family life.

32. Akava’sentrepreneurial/self-employedmembers, 2011 AmongAkava’smembershipthereareapprox. 24,000 full-orpart-timeentrepreneurs and self-employedpersons. Source: Akava’s affiliates

33. Union membership Akava members are highly educated, and mainly join a union that corresponds with their qualifications or occupation. Akava has 35 affiliated unions, and at the beginning of April in 2012 there were altogether 573,400 members. The number of members is growing. The aim is to have 600,000 members by 2015. University and polytechnic students can join their respective Akava unions while they are still studying. Akava’s affiliates have 107,400 student members. Akava members are of the opinion that union membership brings general security in life. Private-sector employees value the earnings-related unemployment security, while public-sector employees value pay security and employment protection. Members are of the opinion that Akava’s success in representing its members’ interests has improved. Nearly half of Akava’s members are of the opinion that Akava has succeeded well or very well. Four years earlier, one in four felt this way.

34. Number of Akava members Source: Akava’s affiliates

35. Membership of each of the three main employeeconfederations as a percentage of allwage and salaryearners in Finland, 1970–2011 Source: Employeeconfederations’ costdistribution

36. Number of studentmembers in Akava Source: Akava’s affiliates

37. Reasons for membership in an Akava memberorganisation, % Source: Akava Member Opinion Poll 2011

38. Akava’s organisation for negotiations Akava Employers and government Central organisation agreements Tripartite agreements Coordination Office for Government as Employer Commission for Local Authority Employers Church Akava’s Public Sector Negotiation Commission JUKO Collective Agreements (public sector) The Delegation of Professional and Managerial Employees YTN Confederation of Finnish Industries EK and its affiliates Collective Agreements Commission for Local Authority Employers Employees in Technical and Basic Service Professions KTN Collective Agreements (public sector) Organisations’ collective agreements Employer organisations Collective Agreements Entrepreneurs and self-employed persons Parliament, Ministries, Local Authorities Influencing legislation

39. Akava’saffiliates 1.4.2012 and number of members 1.1.2012

40. Statistical information on Akava members 2011-2012