Finland
Background information on industrial relations in Finland
- 18 Dec 2002
Finland: SAK sets objectives for next government<#PDF_LINK>In late autumn 2002, the Central Organisation of Finnish Trade Unions (SAK), presented its views on the goals that should be pursued by the new parliament and government to be elected in 2003. These proposals from Finland's largest trade union confederation seek to help the country adapt to the world of the future, through measures such as improvements in workers' skill levels.
- 16 Dec 2002
Finland: New incomes policy agreement covers over 90% of wage earners<#PDF_LINK>In December 2002, the Finnish social partners formally signed a new two-year incomes policy agreement, which covers over 90% of wage earners. A few sectors which are strategically important for Finnish industry, such as seafaring and transport, rejected the deal. The cost effect of the of the agreed wage increases is 2.9% in 2003 and 2.2% in 2004.
- 03 Dec 2002
Finland: Negotiations interrupted in merchant shipping<#PDF_LINK>Negotiations over a new collective agreement for the Finnish merchant shipping sector were interrupted in November 2002 due to a disagreement concerning the use of foreign labour. The employers are seeking a legislative amendment, opposed by the trade union, which would allow the use of foreign labour on Finnish vessels.
- 03 Dec 2002
Finland: Incomes policy agreement applied in metalworking<#PDF_LINK>In November 2002, a collective agreement applying the new national incomes policy agreement for 2003-4 was concluded in the Finnish metalworking sector. The agreement sets the minimum wage increase at 2.6% in 2003 and at 1.8% in 2004. The deal is likely to be followed by agreements in other sectors .
- 26 Nov 2002
Finland: Social partners conclude new two-year incomes policy agreement<#PDF_LINK>In November 2002, the central Finnish social partner organisations concluded a new two-year incomes policy agreement for 2003-4. The cost effect of the agreed wage increases is 2.9% in 2003 and 2.2% in 2004. Some key trade union demands - such as increased redundancy compensation and minimum working hours - were achieved only partially. In order to facilitate the agreement, the government promised an employment package and tax cuts. It is hoped that the deal will stabilise the uncertain economic situation. The central agreement now needs to be approved by individual trade unions and then implemented by sectoral negotiations.
- 28 Oct 2002
Finland: Social partners start negotiations on incomes policy agreement<#PDF_LINK>In October 2002, Finland's central trade union and employers' organisations started talks over a new national incomes policy agreement. The unions want a two-year agreement which will increase wage costs by 3.7%-3.8% in 2003 and 3.4%-3.5% in 2004. The employers have stated their hopes for agreed pay increases of 1.0%-1.5% per year. The unions are also making a number of demands related to working time, to which the employers are opposed. The negotiations are likely to be difficult, as the parties' goals are far apart.
- 10 Oct 2002
Finland: Employers seek more foreign labour<#PDF_LINK>In autumn 2002, debate on immigration policy has continued in Finland, in the light of forecasts of labour shortages in a few years time, when large numbers of workers retire. Therefore, according to the employers, it should be possible to allow more workers from non-EU countries into Finland. The trade unions take a slightly sceptical view of such a development.
- 10 Oct 2002
Finland: Multinationals consider moving head offices abroad<#PDF_LINK>In September 2002, the Confederation of Finnish Industry and Employers (TT) published a survey, which found that multinational companies based in Finland are increasingly seeing a need to move their head offices abroad. Tight personal taxation, distance from financial markets and the strong growth of subsidiaries abroad are cited as key reasons for moving functions to other countries.
- 10 Oct 2002
Finland: SAK resists use of foreign labour on ferries<#PDF_LINK>In September 2002, the Central Organisation of Finnish Trade Unions (SAK) announced that it will resist government plans to amend legislation, so as to allow the use of cheap non-EEA foreign labour on Finnish ferries.
- 10 Oct 2002
Finland: New compromise on pensions rejected by AKAVA<#PDF_LINK>In September 2002, the Confederation of Unions for Academic Professionals (AKAVA) rejected a new compromise proposal for reforming the calculation of retirement pensions. The proposal, whereby pensions would be calculated on the basis of earnings over an employee's whole career, was approved by the other social partners, and will now form the basis for government legislation.
- 10 Oct 2002
Finland: Unions set out priorities for future of EU<#PDF_LINK>In September 2002, Finland's three trade union confederations submitted a letter to the Convention examining the future reform of the EU. Their message stresses the importance of giving more weight in the Convention's work to the issues that closely affect wage earners and citizens.
- 10 Oct 2002
Finland: Agreement reached on 'job alternation' leave<#PDF_LINK>In September 2002, a tripartite working group agreed on the continuation for another five years of Finland's experimentaljob alternationscheme, which enables employees to take a period of sabbatical leave while being temporarily replaced by an unemployed person. The agreement increases the compensation for longer-serving workers who take leave, and introduces a requirement of 10 years prior employment for entitlement to leave. The deal has removed a barrier to the conclusion of a new national incomes policy agreement later in 2002 .
- 28 Sep 2002
Finland: Unions seeking better redundancy protection<#PDF_LINK>In the autumn 2002 incomes policy negotiations, Finnish trade unions are seeking better compensation for, and protection against, collective redundancies. They claim that the cost for employers of making employees redundant in Finland is among the lowest in Europe. Employers are opposed to any changes.
- 24 Sep 2002
Finland: Corporate social responsibility becoming significant issue in working life<#PDF_LINK>In 2002, Finnish debate on the issue of corporate social responsibility (CSR), which has been underway for some years, was intensified by the European Commission's Green Paper on the topic and the activities of the Finnish Business & Society CSR network. The social partners are participating in anethical forum, which promotes the idea of CSR.
- 23 Sep 2002
Finland: Social partners preparing for next incomes policy agreement<#PDF_LINK>Discussions on Finland's next incomes policy agreement started in late summer 2002, with formal negotiations to be held before the current deal expires at the end of the year. The central social partner organisations have announced their aim to conclude a two-year agreement which would support employment. The present economic recession is likely to dampen the trade unions' wage demands.
- 30 Aug 2002
Finland: Pensions proposal falls in face of AKAVA and STTK opposition<#PDF_LINK>In August 2002, a Finnish working group on pensions reform made a proposal for a new method of calculating pensions. However, the proposal fell because of opposition from the Finnish Confederation of Salaried Employees (STTK) and the Confederation of Unions for Academic Professionals (AKAVA), despite support from the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Finnish Industry and Employers (TT) and the Employers’ Confederation of Service Industries (PT). The social partners have been given an extension for their negotiations, but the final decision will probably be referred to the government.
- 28 Aug 2002
Finland: Social partners propose measures to combat unemployment<#PDF_LINK>In August 2002, the Finnish social partners issued their proposals for tackling unemployment, in connection with the government’s 2003 budget preparations. Various organisations have proposed, among other measures, a decrease in taxation for low wage earners. Looming in the background of the debate are the forthcoming parliamentary elections in spring 2003 and negotiations over a new incomes policy agreement in autumn 2002.
- 21 Aug 2002
Finland: Merit pay spreads rapidly<#PDF_LINK>According to surveys published in summer 2002 by the Confederation of Finnish Industry and Employers (TT) and the Employers' Confederation of Service Industries (PT), merit pay - defined as variable pay linked to criteria such as company profits or results - has become widespread in Finnish companies, which plan to extend it further. Trade unions would like to agree on therules of the gamefor merit pay in the next national incomes policy agreement, while the employers reject this idea.
- 26 Jun 2002
Finland: Social partner involvement in the 2002 NAP<#PDF_LINK>This feature examines social partner involvement in Finland's 2002 National Action Plan (NAP) for employment. It is one of a set of similar features for all the EU Member States, written in response to a questionnaire
- 17 Jun 2002
Finland: Finnish social partners issue statement on European employment strategy reform<#PDF_LINK>In June 2002, the Finnish social partners drew up a joint statement expressing their viewpoint on the review of the European employment strategy which is currently under preparation. They unanimously support the reinforcement and simplification of the strategy, and a significant decrease in the number of EU guidelines.
- 10 Jun 2002
Finland: Social partners disagree on conditions for sabbatical leave<#PDF_LINK>In May 2002, a Finnish tripartite working group failed to agree on the conditions to apply to a permanent sabbatical leave scheme, to succeed the current experimental system. Trade unions would have accepted a proposal from the Ministry of Labour, but this fell because of employer resistance. The main issue of contention was the length of prior employment required for employees to be entitled to a sabbatical.
- 23 May 2002
Finland: Employers' pay comparison report rejected by unions<#PDF_LINK>In May 2002, the Confederation of Finnish Industry and Employers (TT) published a report comparing Finnish pay levels with those in other countries, which states that the total wages of Finnish industrial employees are among the highest in EU. According to the Central Organisation of Finnish Trade Unions (SAK), the report seeks to promote employers' aims and represents an opening shot in the next incomes policy bargaining round.
- 21 May 2002
Finland: Government plans to extend paternity leave<#PDF_LINK>In April 2002, the Finnish government submitted to parliament a report on child-related policy, which proposes that fathers specifically should be entitled to one month of childcare-related leave. At the same time, the social partners have promoted fathers' leave by conducting atime out for familycampaign, aimed at achieving a more equal use of family leave periods and increasing equal opportunities in working life.
- 07 May 2002
Finland: Social partners issue statement on good working time practices<#PDF_LINK>In spring 2002, the Finnish national-level social partners issued a joint statement on good working time practices. It states that flexible working hours should be arranged in a way that meets the requirement of markets and customers, while at the same time the individual needs of employees should also be taken into consideration.
- 29 Apr 2002
Finland: Finland 'leads EU' on older workers policy<#PDF_LINK>Finland's national programme for older workers - in which the social partners are central players - ended in March 2002 with a seminar to discuss its results. Research indicates that the labour market position of people aged over 45 has been improved over the five years of the programme: their employment rate has increased and the average retirement age has been raised by a few years. Finland is considered as providing an example to the rest of the EU in terms of policies to deal with the ageing workforce.
- 26 Apr 2002
Finland: Workers receive diminishing share of national income<#PDF_LINK>In March 2002, Finland's Government Institute for Economic Research published a research study on the distribution of national income between labour and capital, commissioned by the tripartite incomes policy information commission. According to the findings, the share of wages in the national income has decreased drastically since the early 1990s. In response, the SAK trade union confederation has warned of a new battle over the distribution of income.
- 24 Apr 2002
Finland: Unions support Sonera and Telia merger plans<#PDF_LINK>In late March 2002, two telecommunications companies, the Finnish Sonera and Swedish Telia, announced their intention to merge. The merger would create the largest telecommunications operator in the Nordic countries and a significant operator on the European scale. According to the companies, the merger will not result in job losses at this stage. Trade unions state that they are satisfied with the plan and believe that jobs will be secure.
- 15 Apr 2002
Finland: Controversy over Finnair hiring temporary staff from Asian countries<#PDF_LINK>The Finnair airline, mainly owned by the Finnish state, decided in February 2002 to start using temporary agency workers from Asian countries on its Far East flights. The SLSY cabin crew trade union finds the work permits granted to these workers questionable and suspects that the use of agency workers will take jobs from Finnair's permanent staff.
- 09 Apr 2002
Finland: Chemicals and textiles unions to merge<#PDF_LINK>In March 2002, the Chemical Workers' Union and the Textile and Garment Workers' Union - two blue-collar trade unions affiliated to the Central Organisation of Finnish Trade Unions (SAK) - signed a letter of intent to merge. The new union, which will be SAK's third-largest affiliate, should begin operations in June 2004.
- 28 Mar 2002
Finland: Debate on education and training policy guidelines<#PDF_LINK>In March 2002, a Finnish parliamentary working group on adult education and training submitted a proposal for raising education and skill levels. The SAK trade union confederation finds the proposal significant from the perspective of helping employees cope at work and improving employment opportunities. The TT employers' confederation has presented its own programme for raising the level ofknow-howin Finland.
- 26 Mar 2002
Finland: Controversy over large dividends for shareholders following pay cuts<#PDF_LINK>In February 2002, a Finnish shipping company, Viking Line, decided to distribute large dividends to its shareholders, pointing to its improved results as justification. A central factor underlying these increased profits is a new, cheaper collective agreement, aimed at averting theoutflaggingof Finnish vessels. Furthermore, the government has granted subsidies to merchant shipping from the beginning of 2002. Viking Line employees and the Finnish Seafarers' Union have expressed outrage at the company's actions.
- 25 Mar 2002
Finland: 2001 Annual Review for Finland<#PDF_LINK>This record reviews 2001's main developments in industrial relations in Finland.
- 26 Feb 2002
Finland: Trade unions worried about EU enlargement<#PDF_LINK>At a seminar held in February 2002, Finnish trade unions expressed their concerns about the forthcoming enlargement of the EU to the east. They are worried that tax competition may be caused by the different taxation practice in the candidate countries, which might be a threat to the welfare state. The unions also fear that the EU decision-making process may be paralysed. For their part, the employers do not see any major threats in connection with enlargement.
- 05 Feb 2002
Finland: SAK highlights employers' social responsibility<#PDF_LINK>Corporate social responsibility has been an issue for debate among the Finnish social partners in recent times. As part of this process, in January 2002, the SAK blue-collar trade union confederation expressed concern about the effects on workers of changes in the economic environment and working life, and challenged employers to definegood workand its content. In the employers' view, companies must have a free hand to define their social responsibility.
- 30 Jan 2002
Finland: Occupational health and safety legislation under reform<#PDF_LINK>A new Occupational Healthcare Act came into force in Finland on 1 January 2002. It strengthens employee healthcare services in companies with the aim of enhancing the well-being of employees. Furthermore, in December 2001, a tripartite committee examining a reform of the Occupational Safety and Health Act issued its proposals. One of the aims of the new legislation and proposals is to address work-related stress, by reorganising conditions at the workplace so as to promotecopingat work.
- 18 Jan 2002
Finland: Social partners discuss taxation<#PDF_LINK>In January 2002, the Finnish social partners expressed their views on the country's taxation levels, in the light of work being carried out to prepare future government tax policy. According to the Confederation of Finnish Industry and Employers (TT), the Finnish taxation level is so high that many of its large member companies are considering moving their head offices to other countries. The trade unions, while recognising that it is important to employees that taxation should be moderate, nevertheless defend taxes as the financial basis for the welfare state.
- 07 Jan 2002
Finland: Non-permanent employment and fear of economic downturn cast shadow on work<#PDF_LINK>The Finnish Ministry of Labour published its yearly 'working life barometer' in December 2001. The results indicate that employees on fixed-term and temporary contracts are discriminated against more than other groups at the workplace. Employees' general attitude to changes in working life has also shifted towards scepticism, and they fear a recurrence of severe economic recession.
- 07 Jan 2002
Finland: Dispute over pension calculation method unresolved<#PDF_LINK>In November 2001, the Finnish social partners, pension institutions and government agreed a series of pension and unemployment insurance reforms. The deal left the question of the basis for future pension calculation to be decided by further discussions, with the choice between basing the pension on a person's earnings in their last 10 years at work (as at present), or over their whole employment history. Following the agreement, the trade union confederations took opposing positions on this issue. AKAVA, representing professional staff, and STTK, representing white-collar workers, want to retain the current 10-year period, while the the blue-collar SAK (along with the employers) favours using the whole career as the basis.