Abstract
Earlier research has underlined the importance of the first incomes policy agreement in 1968, in analysing the qualitative shift to more consensual industrial relations and the stronger influence of labour market organizations in the Finnish welfare state legislation. The main argument is that this qualitative change in Finnish corporatism happened earlier. The compromise between employers and trade unions in the early 1960s was established not because of their strength but because of their simultaneous weakness and vulnerability. The left wing majority in the Eduskunta forced employers to adopt a more conciliatory and even pro‐active view of social reforms. Confederation of Finnish Trade Unions (SAK), which suffered from a severe split, was more than willing to co‐operate with Confederation of Finnish Employers (STK) in social policy as well as in wage bargaining.
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