Finland's future as a technology country? Discussion material for workplaces
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1 Finland's future as a technology country? Discussion material for workplaces -We are a technology enterprise -Technology industry in Finland -The changing world -How Finland can cope
2 We are a technology enterprise 2
3 What are we as an enterprise? Who and where are our customers? What kinds of delivery chains are we networked into? Who are our customers' clients? How does the delivery chain link our enterprise with the world market and international competition? What do our customers value in us, what do they expect from us? Which characteristics and factors affect our enterprise's competitiveness, and how can we influence them among ourselves? Who are our toughest competitors, and what are the qualities and strengths they use in the competition? 3
4 Technology industry in Finland 4
5 The Technology Industry is comprised of four sub-sectors Electronics and the Electro- Technical Industry data communications equipment, instruments, electrical machinery turnover 18,8 billion euros (2009) personnel 58,000 Metals Industry steel products, non-ferrous metals, castings turnover 5,7 billion euros (2009) personnel 14,000 Mechanical Engineering machinery, metal products, vehicles turnover 24 billion euros (2009) personnel 131,000 Information Technology IT services, applications turnover 6,6 billion euros (2009) personnel 51,500 5
6 The Technology Industry the Most Important Sector in Finland 60 % of total Finnish exports 75 % of private-sector R&D investment employed directly in the sector, employed in total, equalling one quarter of the entire Finnish labour force 6
7 The technology industry - the most significant export sector in Finland Finnish goods export by sector, years % 80 % % of total goods export Chemical industries' and other products 60 % 40 % Wood, pulp and paper Steel and non-ferrous metals 20 % 15 0 % Machines, metal goods and transport equipment Electronics and electrotechnical products Source: National Board of Customs 7
8 The technology industry is fundamental for export-dependent Finland's prosperity The technology industry brings new wealth into our economy from abroad - money that enables demand in domestic market areas and public services. Export 45% of Finland's gross domestic product. Finland cannot cope without the technology industry. 8
9 The technology industry competes in the world-class series The industry's personnel works internationally More than 70% of the Finnish production is exported. Even the small companies belong to international networks. Technology industry enterprises compete internationally The price competition is hardening. Productivity is growing at a fast rate in Asia and Eastern Europe. The competitiveness of the technology industry is constantly measured globally» Domestic orientated sectors are not the standards of comparison. 9
10 The changing world 10
11 Models of closed economy do not belong to the world-class series When competition is international, national production cost increases cannot be transferred to product prices - this would chase away the customers. Increases in sheltered sector costs must not speed up domestic inflation nor result in tax increases, thereby causing Finnish competitiveness to suffer. If costs increase faster than productivity improves in Finland, part of the labour will be directed to less expensive countries. 11
12 The success of the technology industry is a prerequisite for our prosperity The world economy grows fastest outside the traditional developed countries. It is in every Finn's interest to see that Finland succeeds and can compete as a homeland for technology companies. It is in the interest of Finnish society to look after the requirements for success of their international companies; requirements that we can ourselves influence. A well-functioning, effective labour market has an essential impact on the Finnish competitiveness and prosperity. Capable people can find challenging and interesting jobs, and companies gain the workforce they need. 12
13 The focus of the world's economic growth has moved away from the traditional industrial countries 11 GDP growth in 2010, % Average growth: +4,8 % China India Rest of Asia Russia Rest of Eastern rope Brazil Mexico Middle East, Africa 4 3 North America Japan 2 Western Europe The width of the bar indicates the share (purchasing power parity adjusted) of world GDP in 2009, % Source: IMF (October 2010) 13
14 Personnel in the Technology Industry employees affected by temporary and part time layoffs (30.6) Personnel in Finland Personnel in subsidiaries abroad Source: Statistics Finland, The Federation of Finnish Technology Industries labour force survey 14
15 The fastest growth takes place in the developing economies Finnish technology industry personnel in subsidiaries abroad Western Europe, North America Asia, Eastern Europe, Central and Latin America Africa, the Middle East At the end of the year Source: The Federation of Finnish Technology Industries 15
16 How Finland will cope 16
17 We can create our own success Can we change and develop quickly enough, following the market's demands? Are we ready to act in accordance with our customers' needs? Can we provide work when it is needed? Do we compensate fairly for good achievements? Are we utilising and developing, without prejudice, new practices and methods that help the personnel to free their resources into achieving even more? 17
18 Improving productivity to ensure our prosperity By developing the labour market, success to the technology industry and its personnel, as well as prosperity for Finns: Terms of employment agreed at the company and workplace level Incentive through compensation Working hours according to needs Industrial peace essential for prompt delivery 18
19 Conditions of employment agreed at the workplace Terms of employment settled where the work itself is best known. Establish the practice of agreeing on the terms of employment at each workplace individually. A new way of thinking and new practices for both the management and personnel. The task of the federation and unions is to further willingness and facility for workplace-level cooperation in companies. 19
20 Incentive through compensation In Finland Salaries, wages and cost development according to the export sectors preconditions. From general wage increases to well functioning workplace solutions. In companies Pay to be negotiated and agreed on at the workplace. Competence, capabilities, and results as the basis for compensation. Wages and salaries according to the work done. 20
21 Working hours according to demand and needs Effective working time arrangements can be a competitive edge. Utilise the current flexibilities also new ones needed. Working time and compensation for overtime to be agreed at the workplace 21
22 Prompt deliveries request industrial peace In a networked economy and delivery chains, industrial peace has an important role. Labour market rules and practices must be renewed according to today s needs. Both our own industrial actions and those of others endanger our workplace. Illegal industrial actions must be more effectively prevented. More responsibility to shop stewards and employees. 22
23 - The technology industry is a key factor in Finnish prosperity. - The technology industry competes in the world-class series. - At the workplace, the customers and their changing needs are known. - In companies, Finland's success is determined. 23
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