The voice of Finnish commerce grew louder
The operational environment for commerce continued to be challenging in Finland in 2015. Consumer purchasing power declined for the fourth year in a row. During the past two years, the commerce sector has lost 12,000 jobs. Yet, with nearly 300,000 jobs to offer, the sector continues to be the biggest employer in the Finnish economy.
The past year was fairly divided: while the biggest retail business sectors—namely the grocery trade, department stores and the hardware store sector—shrank, happily several specialty goods trade sectors grew. Wholesale trade, which is undergoing structural changes and operating in an environment of tough international competition, lost turnover in almost all its sectors.
After a long-term recession, however, the commerce sector is finally looking at growth prospects—
although those prospects stand on a fairly shaky ground. According to the projection of the Finnish Commerce Federation, commerce is set to grow by 0.5 per cent over the current year and by an equal amount in 2017, provided that the growth is not stifled by tax increases.
Lobbying intensified
2015 proved to be a very significant year in terms of commerce lobbying. It focused on three things in particular – the parliamentary elections, the new government programme and the cooperation of commerce federations, which increased to a considerable degree.
Influencing the new government programme was the primary goal of the Finnish Commerce Federation. We are satisfied that the programme of Prime Minister Sipilä’s government is favourable to business in a balanced way. The government’s readiness for deregulation has been a particularly positive aspect. We also hope that the government will stick to its promise not to raise taxes, because tax hikes would have an adverse effect on purchasing power and, thereby, a dynamic domestic market.
As the sector’s national lobbying organisation, the Finnish Commerce Federation promotes Finnish commerce, improves the operating conditions for and cooperation among the companies operating in commerce and looks after its members’ business and employer interests.
In 2015, cooperation between the Finnish Commerce Federation and the federations of specialty goods intensified, creating conditions for increasingly effective lobbying. We have been successful in increasing the number, quality and effectiveness of meetings to a significant degree. Our message was also increasingly successful in getting through the media. At the next stage, the cooperation will be further strengthened by the involvement of the Finnish Grocery Trade Association. Cooperation negotiations are also underway with the Federation of Finnish Wholesalers and Importers.
The Finnish Commerce Federation has a total of 2,200 corporate members that represent all sectors of commerce: the retail trade, wholesale trade, technical trade, car trade and pharmacies. In addition to corporate members, we have 25 member associations. In all, our lobbying efforts cover approximately 7,000 companies.
Important role in the labour market
The Finnish Commerce Federation negotiates the sector’s collective labour agreements, resolves labour disputes and serves its members in employment affairs.
The past year again proved how poorly the Finnish labour market system functions. Effecting change takes too long and industrial peace is too easily shaken. The end of 2015 and the beginning of 2016 were marked by the debate over the social contract for the labour market. The social contract aims to bring predictability to our economy, reshape its structures and improve the competitiveness of businesses.
Right now, our primary objectives in the labour market include increasing the appreciation of and improving the opportunities for part-time employment and advancing the status of local collective bargaining.
Work to improve youth employment
The commerce sector is by far the biggest employer of young people in Finland. We want to use all means available to us to prevent the exclusion of young people, reduce youth unemployment and advance young people’s entry into the labour market. One of the solutions we have presented in terms of the above is an initiative regarding a new kind of training employment model that would help young people find their place in working life in a more flexible manner.
In 2015, the Finnish Commerce Federation joined the Commitment 2050 project, also known as the Society’s Commitment to Sustainable Development, within the framework of which we wish to encourage our corporate members to take action to promote the employment of young people and prevent exclusion. We have also made a commitment to build our own youth programme for 2015–2019.
Research, training and communications
We do a lot of work to make the commerce sector better known to the public. We develop the sector’s research and communications activities, organise diverse training and events and promote international commerce-related cooperation. We influence legislation at both the national and the EU levels in order to promote competition and decrease regulation.
The voice of our corporate members is heard in, among other channels, committee work, which involves more than 100 representatives from our member companies. The committees exert extensive influence on various issues related to commerce.
Topics in 2015
Strong topics that dominated the agenda of discussions among citizens, the media and professionals of trade and commerce alike included mega trends such as the digital world, internationalisation and responsibility as well as the aforementioned parliamentary elections, the new government programme, the social contract for the labour market and the reformation of the labour market.
Naturally, discussion also focused on the refugee crisis affecting all of Europe. The commerce sector has often been seen as a possible employer of immigrants and as a promoter of integration. Many commerce sector businesses are indeed experienced in the employment of immigrants.
The beginning of 2016 finally saw the full deregulation of opening hours that the commerce sector has hoped for for years. Stores are now free to decide when to keep their doors open for business. In the weak economic situation, this reform increases their possibilities to create growth and jobs.
Competition—or the alleged lack thereof—in the grocery trade in Finland has been a subject of debate for several years now. That competition in this industry works was proven beyond doubt last year, as the price of food declined by two per cent due to fierce price competition.
