Finland
Background information on industrial relations in Finland
- 28 Dec 2000
Finland: IAU fined following airport strike<#PDF_LINK>In November 2000, an arbitration tribunal ordered the Finnish Air Transport Union (IAU) to pay a fine of FIM 25,000 in respect of a protest strike organised by the union. According to the judgment, the union breached its peace obligation. According to IAU, the strike was a protest expressing concern about airport safety and the personnel policy of the Finnair airline.
- 28 Dec 2000
Finland: Incomes policy agreement signed<#PDF_LINK>Finland's new comprehensive incomes policy agreement was signed formally on 15 December 2000. The two-year wage agreement will mean an increase in labour costs of 3.1% in 2001 and 2.3% in 2002. The agreement covers about 2 million wage earners, or some 90% of Finnish employees.
- 28 Dec 2000
Finland: 2000 Annual Review for Finland<#PDF_LINK>This record reviews 2000's main developments in industrial relations in Finland.
- 28 Nov 2000
Finland: Protest strike at Finnair<#PDF_LINK>On 1 November 2000, the Finnish Air Transport Union (IAU), representing airport workers, held a protest strike against the personnel policy of the Finnair airline and planned structural changes in the company. Finnair considered the strike illegal and has referred the matter to an arbitration tribunal. Negotiations aimed at resolving the dispute are under way between IAU and the Association of Support Service Industries.
- 28 Nov 2000
Finland: New centralised incomes policy agreement concluded<#PDF_LINK>The Finnish central social partners - except AKAVA, the trade union confederation representing professionals with a high level of education - successfully concluded negotiations over a new centralised incomes policy agreement on 17 November 2000. The two-year wage agreement will mean an increase in labour costs of 3.1% in 2001 and 2.3% in 2002. The deal, which is by nature a recommendation, will now be implemented in sector-level bargaining.
- 28 Oct 2000
Finland: Controversy as paper workers stick to bargaining timetable<#PDF_LINK>In October 2000, the Finnish Paper Workers' Union announced that it will follow the bargaining timetable set out in its current collective agreement and negotiate on wage increases in January 2001. The goal of the central social partner organisations has been to conclude a centralised incomes policy agreement in November 2000. This difference in timetable is causing controversy as the bargaining round approaches.
- 28 Oct 2000
Finland: Social partners issue demands for incomes policy round<#PDF_LINK>In September 2000, the Finnish social partners and government started preparations for the forthcoming bargaining round, which may take place at central level. Trade unions have made a number of "qualitative" demands, such as a cut in working time and a pay indexation clause to guarantee purchasing power in the event that inflation is higher than estimated. The employers take a negative view of the growing weight given to qualitative issues and do not see an indexation clause as appropriate to the era of Economic and Monetary Union.
- 28 Oct 2000
Finland: Accelerating inflation aggravates bargaining round<#PDF_LINK>In autumn 2000, high inflation and the weak euro have caused concern as Finland's bargaining round starts. Most of the wage increases agreed in the sector-level bargaining round in spring 2000 have vanished due to increased inflation, and the rise in purchasing power will be lower than forecast. Given this background, the bargaining round is expected to be complicated.
- 28 Sep 2000
Finland: New centralised agreement faces many obstacles<#PDF_LINK>August 2000 saw the opening of discussions on Finland's next collective bargaining round. The prospect of returning to centralised incomes policy agreements, after 2000's sectoral bargaining round, faces numerous obstacles, such as disagreements on the reform of the Employment Contracts Act and government proposals on unemployment benefit and the partial pensions scheme. Rapid economic growth favours another sectoral bargaining round in 2001, even if many parties see a centralised agreement as the best solution for the Finnish economy.
- 28 Sep 2000
Finland: Foreign labour dispute resolved in merchant shipping<#PDF_LINK>In August 2000, the Finnish Seafarers' Union reached an agreement, following conciliation, which ended its dispute with a shipowner over the use of Polish workers. Under the deal, the pay and conditions of the Polish seafarers will be increased nearer to Finnish levels.
- 28 Sep 2000
Finland: SAK launches trade union internet portal<#PDF_LINK>In August 2000, the Finnish trade union confederation, SAK, signed a cooperation agreement with a private media company to establish an internet portal for trade unionists. The aim is to offer benefits to members via the internet and to increase interaction between members and unions.
- 28 Sep 2000
Finland: Dispute over Employment Contracts Act resolved<#PDF_LINK>In September 2000, the Finnish government reached an agreement in the long-running dispute on the reform of the Employment Contracts Act, through a compromise that satisfies both trade unions and employers. The dispute related to the "general validity" of collective agreements - ie their binding application on all employees and employers in a sector. Under the new proposal, the general validity of a collective agreement will be determined not just on the basis of statistical data on the membership of employers' organisations, but also in the light of other criteria, such as the established practice of collective agreements in the sector and the general level of membership of both trade unions and employers' organisations.
- 28 Aug 2000
Finland: Cheap labour conflict continues in merchant shipping<#PDF_LINK>Despite a government decision to grant subsidies to shipowners, tensions over "outflagging" and the use of foreign labour in Finnish merchant shipping continued in August 2000, with a shipowner hiring Polish seafarers. The Finnish Seafarers' Union considers these contracts of employment invalid and has boycotted the vessels concerned. The shipowner is considering legal action against the union.
- 28 Jul 2000
Finland: Government agrees to grant subsidies for shipping<#PDF_LINK>The Finnish Government's ministerial committee for economic policy decided in June 2000 to favour measures that will improve the prerequisites for the competitiveness of the Finnish merchant shipping fleet. The government will submit bills to parliament on subsidising shipowners in the form of lower taxes and contributions. The sector's social partners, who had called for such measures, seem relatively satisfied with the decision.
- 28 Jun 2000
Finland: Employers demand amendment of strike legislation<#PDF_LINK>The main Finnish employers' organisations, TT and PT, were concerned by the sympathy strikes and similar action which occurred during the sectoral collective bargaining round in spring 2000. In May, they demanded action from the government to amend existing regulations on industrial action. The SAK trade union confederation responded with a stern warning to the government not to interfere with the right to strike. The Prime Minister stated that the social partners should agree among themselves on the "rules of the game".
- 28 Jun 2000
Finland: Government withdraws bill to reform Employment Contracts Act<#PDF_LINK>In May 2000, a compromise proposal for a bill amending Finland's Employment Contracts Act aroused a severe dispute between the trade union movement and the government. Disagreement was caused by differing views on the definition of the "general validity" of collective agreements. The bill has now been withdrawn for further consideration.
- 28 Jun 2000
Finland: Rifts open between government and trade union movement<#PDF_LINK>In June 2000, the Finnish trade union movement is in a state of agitation over a proposed reform of the Employment Contracts Act, a bill on the liberalisation of opening hours in retail and plans for privatising state-owned companies. The long-lasting cooperation between the "rainbow" coalition government and the trade unions seems to have sustained severe bruises.
- 28 May 2000
Finland: Moves towards decentralisation in 2000 bargaining round?<#PDF_LINK>Finland's sectoral collective bargaining round in spring 2000 saw strikes or strike warnings by a number of powerful trade unions, such as those in chemicals, transport, and paper. These unions achieved settlements in excess of the general wage increase norm of 3.1%. Solidarity in Finnish incomes policy seems to be eroding during the current economic upswing, and the bargaining system is moving towards greater decentralisation.
- 28 May 2000
Finland: Government issues bill on extension of shop opening hours<#PDF_LINK>In May 2000, the Finnish government presented a bill on the extension of opening hours in the retail trade. Under the proposals, shops could open more often and, in some cases, for longer on Sundays. Trade unions see the change as unnecessary, while employers consider the proposed reform as an intermediate stage on the way towards complete liberalisation of shop opening hours.
- 28 May 2000
Finland: Dispute highlights threat to Finnish seafarers' jobs<#PDF_LINK>In May 2000, the Finnish Seafarers' Union held a boycott and sympathy strike in a dispute over the application of a Finnish collective agreement to an Italian-registered ship with a mainly Estonian crew. The conflict provided an outlet for underlying worries about the future of Finnish seafarers' jobs. Under an amendment made to the Maritime Act in early 2000, the "outflagging" of Finnish ships to the register of another EU or EFTA country will be possible without ownership being transferred from Finland. According to the Finnish Shipowners' Association, such outflagging can be prevented only by increasing state subsidies and cutting taxation.
- 28 Apr 2000
Finland: Strikes break out as bargaining round nears conclusion<#PDF_LINK>The final agreements in Finland's sectoral collective bargaining round in spring 2000 were hastened by a number of strikes. The first significant industrial action took place in March in the chemicals industry, where an agreement was achieved after a week-long strike. This was followed by a major nationwide five-day strike in the transport sector, with the scope of the dispute widened by a lock-out by employers, leading to an agreement on 3 April. Finally, a deal for the paper sector was reached on 19 April, after a nationwide strike lasting over a week.
- 28 Apr 2000
Finland: Paper workers on strike<#PDF_LINK>On 11 April 2000, the Finnish Paper Workers' Union launched the first nationwide strike in its history, covering all 30,000 members in the paper sector, which has a key role in Finland's exports. Negotiations over a new sectoral agreement had broken down due to disagreement concerning working time, security in the event of lay-offs, bonus systems, subcontracting and wages.
- 28 Apr 2000
Finland: Dispute over outsourcing of postal services<#PDF_LINK>In April 2000, the Finnish postal service, Finland Post, decided to close some of its branches and transfer their activities to subcontractors, with the loss of 1,500 jobs. Trade unions have opposed the plan by organising a one-day strike and by contacting politicians, though without being able to prevent the closures.
- 28 Apr 2000
Finland: New agreement follows strike in paper sector<#PDF_LINK>Finland's nationwide paper workers' strike ended after more than a week on 19 April 2000, with the conclusion of a new collective agreement for the sector. The agreement is valid for three years, and the cost effect of the wage increase for the first year is under 4%. Wage increases for the second and third years were left open for subsequent agreement. Settlements were also achieved for sectoral problems concerning working time, security during lay-offs, use of outside labour, and the award of result- and profit-related bonuses.
- 28 Mar 2000
Finland: Tension heightens in bargaining round<#PDF_LINK>In Finland's spring 2000 collective bargaining round, there were still no agreements by early March in a number of important sectors - including chemicals, paper, food and transport - and the negotiating atmosphere was becoming tense. Workers in the forest machinery sector started a strike on 2 March.
- 28 Mar 2000
Finland: Committee on Employment Contracts Act submits proposals<#PDF_LINK>A tripartite committee which has been working on a reform of Finland's Employment Contracts Act since 1995 submitted its proposals for a new Act in February 2000. The preparation of the proposed amendments involved many disagreements and during the final stage disputes centred especially around changes concerning the "general validity" of collective agreements and temporary agency work. These disputes are now expected to continue within the government before legislative proposals are brought before Parliament.
- 28 Mar 2000
Finland: Proposed rehabilitative employment scheme causes controversy<#PDF_LINK>In February 2000, the Finnish Ministry of Social Affairs and Health published a proposal for new measures to improve the position of long-term unemployed people who have difficulties in finding work, including a compulsory "rehabilitative employment" scheme, under threat of benefit cuts. Employers have reacted positively to the proposal, while trade unions characterise the idea as forced labour.
- 28 Feb 2000
Finland: Third phase of training guarantee scheme agreed<#PDF_LINK>A Finnish social partners' working group agreed in January 2000 on the implementation of a scheme providing funding for people in employment to undertake vocational training courses on their own initiative. This third phase of the so-called "training guarantee scheme" is a sequel to the first and second phases, which were intended for unemployed and long-term unemployed people
- 28 Feb 2000
Finland: New agreements reached for over 1 million workers<#PDF_LINK>In late January 2000, the social partners in Finland's banking sector concluded a one-year collective agreement providing for a 3.1% pay increase, in line with the trend set by the metalworking sector. A deal was also reached for most municipal and state employees, and by early February 2000 over 1 million workers were covered by a new collective agreement in the sectoral bargaining round.
- 28 Feb 2000
Finland: Closure of Fujitsu Siemens plant – a repeat of Renault Vilvoorde?<#PDF_LINK>Fujitsu Siemens decided in December 1999 to shut down a profitable computer assembly plant in Finland and move its production to Germany. Following the closure (attempts to find a prospective buyer failed), 450 employees will be dismissed by the end of March 2000. The employees are now asking whether laws and agreements have been violated, as in the case of the closure of Renault Vilvoorde in 1997. However, it is clear that nothing will prevent closure, though the significant electronics industry cluster that has been established in Finland should provide work for those made redundant.
- 28 Jan 2000
Finland: Metalworkers prepared to strike<#PDF_LINK>Negotiations in the metalworking sector, which is taking the lead in Finland's 2000 sectoral collective bargaining round, were temporarily suspended in mid-January due to disagreement about wages and trade union demands for an extra paid day off per year. The Finnish Metalworkers' Union has authorised the issuing of a strike threat if a satisfactory solution is not found.
- 28 Jan 2000
Finland: Agreement in metalworking sets trend for bargaining round<#PDF_LINK>In January 2000, a new one-year collective agreement was signed in the Finnish metalworking sector, which will increase labour costs by 3.1%. Similar pay agreements were subsequently concluded in other sectors such as construction and commerce.