Finland
Background information on industrial relations in Finland
- 20 Dec 2004
Finland: National competitiveness under debate<#PDF_LINK>A project titled Finland in the global economy, commissioned by the Prime Minister, concluded in November 2004. The project involved the social partners in extensive sector-specific dialogue to discuss how Finnish companies' competitiveness can be maintained and improved. The project's steering group has made various recommendations for reforming collective bargaining, which have been strongly criticised by the SAK and STTK trade union confederations. SAK has also contested statements by the EK employers' organisation that labour costs are a constraint on the competitiveness of Finnish firms.
- 07 Dec 2004
Finland: Incomes policy negotiations interrupted by strikes<#PDF_LINK>Industrial action spread in Finland's transport sector in November 2004, in a dispute over part-time recruitment at two bus companies. The Confederation of Finnish Industries responded by halting the current national incomes policy negotiations for five days until the strikes had ended.
- 26 Nov 2004
Finland: Redundancies put pressure on social partner relations<#PDF_LINK>Several large-scale collective redundancies have been announced in the Finnish metalworking and wood processing industries in late 2004. Trade unions have reacted by calling for stronger redundancy protection and holding protest strikes. The strikes have antagonised employers and relations between the social partners have deteriorated. Following almost a decade of growth, industrial employment has been falling sharply since 2002, with the loss of about 40,000 jobs (8% of the total) over this period.
- 22 Nov 2004
Finland: Thematic feature - collective agreements on changes in work organisation<#PDF_LINK>This article gives a brief overview of collective bargaining on changes in work organisation in Finland, as of September 2004. It looks at: the extent to which collective agreements introduce changes in work organisation that take into account productivity demands, flexibility and security in an integrated way; the main areas in which changes are being introduced; the overall success or otherwise of bargaining on the topic; and the prospects for the future.
- 09 Nov 2004
Finland: Incomes policy negotiations begin amid discord<#PDF_LINK>Finland's central social partner organisations started talks over a new national incomes policy agreement in early November 2004. Differences between employers and trade unions are considered especially serious on this occasion - the nature of pay policy, the level of pay increases and qualitativemeasures such as redundancy protection and contractor responsibility are all contested.
- 09 Nov 2004
Finland: Poll finds strong public support for union organisation<#PDF_LINK>According to the findings of a opinion poll published in September 2004, 89% of people in Finland consider trade union organisation to be important. The survey also indicates that a majority value the work of the union confederations and that the principal reason for belonging to a union is increased pay and job security.
- 28 Oct 2004
Finland: Study finds that chronic unemployment remains widespread<#PDF_LINK>According to a study published in summer 2004, nearly half of unemployed people in Finland have remained outside the open labour market for over two years. This, the study concludes, cannot be explained by individual background variables used in conventional statistics, or as being a heritage of the early 1990s recession. Instead, rapid structural changes in labour demand in the course of the 1990s appears to have caused the problem. The skills of many people have become outdated while social exclusion and discouragement have probably prevented many from finding work. Moreover, the level of labour demand itself seems to have diminished. This article summarises the study's findings and the views of the social partners and government.
- 04 Oct 2004
Finland: Government promises tax cuts in return for strong wage restraint<#PDF_LINK>In September 2004, the government announced its objectives for Finland's forthcoming round of wage negotiations. It advocates a three-year centralised settlement with wage increases averaging 0.7% per year, combined with income tax cuts worth EUR 1.5 billion. Trade unions have rejected the proposition and insist that disposable income should be raised by wage increases, not by tax reductions. Employers have been critical of the government's decision to make the tax cuts conditional on a moderate wage settlement.
- 04 Oct 2004
Finland: SME employers’ role in collective bargaining strengthened<#PDF_LINK>In September 2004, the Federation of Finnish Enterprises (SY), a pressure group representing 88,000 SMEs, and Finnish Industries (EK), the main central employers’ organisation, agreed to increase their cooperation in matters related to labour market policy. This gives SY wider influence over collective bargaining.
- 24 Sep 2004
Finland: Measures to narrow gender wage gap evaluated<#PDF_LINK>A government-appointed special commissioner, Tuulikki Petäjäniemi, issued her report evaluating the adequacy of recent measures to promote equal pay in Finland in August 2004. She concludes that the gender wage gap needs to be addressed more fully, preferably within a tripartite framework. The report finds that occupational gender segregation remains strong and that the current pay determination system favours male-dominated sectors, though promising measures to address these issues are already in limited use. Measures that have effectively narrowed the gender wage gap include analytical job evaluation schemes and bringing male- and female-dominated sectors within the same collective agreements.
- 06 Sep 2004
Finland: Government reforms financing of sickness insurance<#PDF_LINK>A plan for the reform of sickness insurance contributions was announced by the Finnish government in August 2004. From 2006, the financing of sickness insurance will be amended so that receiving benefits and paying for them will be more directly linked. Furthermore, the contributions of both employers and workers will be increased. The social partners are satisfied with the basic structure of the plan, but have raised concerns over how the costs should be shared.
- 26 Aug 2004
Finland: 'Solidaristic' pay policy under debate<#PDF_LINK>The traditional solidaristicprinciples behind Finnish pay policy, and the current mechanisms to apply this policy, have been severely criticised by employers during 2004. Trade unions have responded by arguing strongly for the current system, notably in a report published by the Central Organisation of Finnish Trade Unions (SAK) in July. This article presents and evaluates the largely opposing positions on the subject taken by SAK and the Confederation of Finnish Industry and Employers (TT).
- 16 Aug 2004
Finland: Thematic feature - industrial relations and undeclared work<#PDF_LINK>This article gives a brief overview of the industrial relations aspects of undeclared work in Finland, as of June 2004. It looks at: the nature and extent of undeclared work; the regulatory framework; the role, activities and views of the social partners; and partnerships between social partners and public authorities to tackle undeclared work.
- 11 Aug 2004
Finland: Employers demand scrapping of premia for weekend work<#PDF_LINK>In July 2004, several Finnish employers’ organisations proposed the abolition of premium rates of pay for weekend work, which they believe increase labour costs excessively and thus harm companies and employment levels. Trade union strongly oppose any such move and question the employers' arguments.
- 23 Jul 2004
Finland: Finnish labour-intensive manufacturers expand into new Member States<#PDF_LINK>A survey of Finnish industrial firms' employment and investment in the new EU Member States was published in June 2004. It finds that a growing share of the companies' foreign-based employment, 9.5% in 2002, is in these countries, though they have received only 3.6% of the firms' foreign investments. The social partners all view EU enlargement as desirable, but trade unions are concerned over certain related issues, such as tax competition.
- 08 Jul 2004
Finland: Thematic feature - individual labour/employment disputes and the courts<#PDF_LINK>This article examines how individual labour/employment disputes are handled through the courts in Finland, as at March 2004.
- 07 Jul 2004
Finland: Major consolidation of unions taking place<#PDF_LINK>Trade unions are going through a period of consolidation and merger in Finland. In May-July 2004, several new developments took place in this unification process, including the merger of the Chemical Workers' Union and the Textile and Garment Workers' Union.
- 25 Jun 2004
Finland: Social partners cooperate to tackle undeclared work in construction<#PDF_LINK>The informal economy and undeclared work are relatively widespread in the construction industry in Finland. The social partner organisations in the sector have tackled this issue in various ways, most effectively by agreeing to use an electronic pass system for workers and contractors at building sites. However, many of the measures that have been agreed have affected only established and organised companies. This article reviews the situation in mid-2004.
- 10 Jun 2004
Finland: Draft Directive on services receives mixed response<#PDF_LINK>A draft Directive seeking to remove legal and administrative barriers to the development of a free market for services in the EU, proposed by the European Commission in March 2004, has received a mixed response among the Finnish social partners. PT, the service sector employers’ organisation, welcomes the proposal while SAK, the blue-collar trade union confederation, fears that it could lead to insufficient monitoring of employment conditions.
- 09 Jun 2004
Finland: 2003 Annual Review for Finland<#PDF_LINK>This record reviews 2003's main developments in industrial relations in Finland.
- 02 Jun 2004
Finland: Highly educated Finns' purchasing power 'lowest in EU' - AKAVA demands changes<#PDF_LINK>According to a comparison of incomes in 14 EU countries, published in April 2004, Finns’ wages are around the average but, due mainly to the high cost of living, their purchasing power is low. Notably, Finnish workers with a higher education have the lowest purchasing power among this group in the countries considered. AKAVA, the trade union confederation representing professional workers, has responded to the research findings by demanding that the position of highly educated Finns be improved by decreasing their tax burden and increasing their wages relative to those of low-skilled workers. These demands have already been partially met, and income inequality has been rising faster in Finland than in the other countries examined in recent years.
- 10 May 2004
Finland: Increase in foreign temporary agency workers due to EU enlargement<#PDF_LINK>Since 1 May 2004, temporary employment agencies from the new EU Member States have been free to offer their services in Finland. The number of Estonian agency workers in particular is likely to increase as a result. Finnish social partner organisations have reacted to this prospect by introducing new measures for controlling the use of foreign labour.
- 21 Apr 2004
Finland: Working time 'banks' proposed to increase flexibility<#PDF_LINK>In February 2004, Finnish employers’ organisations and white-collar trade union confederations issued proposals for the establishment of working time banks, with aim of increasing flexibility. SAK, the blue-collar trade union confederation, has rejected the plans, arguing that the needs of employers are prioritised over the needs of workers. The role of trade unions in the determination of working time has been reduced markedly over the past decade as decision-making has increasingly moved to the workplace level.
- 08 Apr 2004
Finland: Improved annual leave rights proposed for 'atypical' workers<#PDF_LINK>In March 2004, a tripartite committee issued proposals for reform of Finland's Annual Holidays Act. It suggests improvements in the annual leave rights of part-time workers and those on fixed-term contracts, as well as increased flexibility in the timing of leave.
- 29 Mar 2004
Finland: Pension reform seeks to encourage longer careers<#PDF_LINK>New legislation on private sector state pensions will come into force in Finland in 2005. The reform will reduce the possibilities of early retirement, while financial incentives will be provided for staying in work longer. According to a recent survey, the incentives will have a significant effect on workers’ retirement plans - one-third intend to remain in employment after the new qualifying age of 63 for an old-age pension.
- 08 Mar 2004
Finland: Employers’ confederations agree merger<#PDF_LINK>In February 2004, the boards of the Confederation of Finnish Industry and Employers (TT) and the Employers’ Confederation of Service Industries (PT) agreed on a merger to create a new central employers' organisation, Finnish Industries (EK). EK will become operational in autumn 2004 and will represent at least 15,000 companies that together account for over 70% of Finland’s GNP.
- 02 Mar 2004
Finland: Higher pension contributions for older workers to be abolished<#PDF_LINK>In February 2004, a tripartite working group including social partner representatives agreed that age-related pension contributions in large firms under Finland's private sector TEL scheme should be abolished by 2007. This reform will reduce employers’ pension contributions for older workers and its basic aim is to remove barriers to the employment of these workers.
- 10 Feb 2004
Finland: Public sector trade unions plan merger<#PDF_LINK>Six Finnish public sector trade unions have decided to merge to form a single organisation with 250,000 members at the beginning of 2006, with the aim of achieving greater bargaining power. The merger is part of a wider trend towards consolidation among both trade unions and employers' organisations.
- 27 Jan 2004
Finland: Study examines wage cuts during the 1990s<#PDF_LINK>According to a study published in November 2003, wage cuts became increasingly common in Finland during the turbulent 1990s. Nominal wage cuts were fairly uncommon for non-manual workers in manufacturing and for service sector workers, but somewhat more frequent for manual workers in manufacturing. However, nominal wage moderation together with inflation produced real wage cuts for a large proportion of employees during the worst recession years of the early 1990s. Centralised wage bargaining played an important role in this development.