Finland
Background information on industrial relations in Finland
- 21 Dec 2007
Finland: Massive job cuts due to restructuring in paper sectorIn response to substantial cost increases and in order to safeguard long-term profitability, the Finnish pulp and paper company Stora Enso has announced a severe restructuring programme. Trade unions at national and international level have condemned the closure of profit-making mills. Meanwhile, the paper company M-real has also announced closures in southern Finland. These measures will lead to a combined total of 1,300 job losses on a national scale.
- 19 Dec 2007
Finland: Impact of the working time directive on collective bargaining in the road transport sector — FinlandThis is the Finnish contribution to the Comparative analytical report on the Impact of the working time directive for the road transport sector on collective bargaining
- 19 Nov 2007
Finland: Employers push for foreign labour recruitment driveThe chief executive officer of the Confederation of Finnish Industries has stated that Finland needs thousands of new foreign workers a year. The Ministry of Labour will begin to lead the recruitment of foreign labour for Employment and Economic Development Centres in Finland using European structural funds.
- 14 Nov 2007
Finland: Industrial relations in the postal sector — FinlandThis is the Finnish contribution to the comparative analytical report on Industrial relations in the postal sector
- 12 Nov 2007
Finland: Nurses’ union rejects pay offer and calls for industrial actionThe Union of Health and Social Care Professionals has rejected the municipal employers’ pay and working conditions offer. The union is demanding a 24% increase to rectify what it sees as unreasonably low pay. This would amount to increments of between €400 and €600 in monthly pay over the two-and-a-half years that the contract would be in force. The union has announced that it will organise mass resignations from 19 November 2007.
- 09 Oct 2007
Finland: Rise in number of harassment cases in the workplaceAccording to results from the latest study conducted among members of the Confederation of Unions for Academic Professionals (AKAVA), the incidence of different types of harassment at the workplace has increased. The study shows that one third of AKAVA members have perceived harassment in their workplace, while one fifth claim that they have been a victim of harassment.
- 09 Oct 2007
Finland: Progress towards sectoral collective agreements ongoingNegotiations for new collective agreements are in progress at sectoral level. So far, new agreements have been reached in the food industry, financial services, chemicals industry and technology industries. Most of the negotiating trade unions are seeking pay rises similar to those secured in industry. However, talks in the public sector are in danger of collapsing, particularly in the area of healthcare.
- 01 Oct 2007
Finland: Representativeness of the social partners: Agricultural sector – FinlandThe aim of this representativeness study is to identify the respective national and supranational actors (i.e. trade unions and employer organisations) in the field of industrial relations in the agriculture sector in Finland. In order to determine their relative importance in the sector’s industrial relations, this study will, in particular, focus on their representational quality as well as their role in collective bargaining.
- 03 Sep 2007
Finland: Agreement in chemicals sector opens new collective bargaining roundIn June 2007, the Chemical Industry Federation of Finland and the Chemical Workers’ Union reached a new collective agreement for the sector. The 30-month deal is the first in the current national wage policy agreement and is expected to serve as a benchmark for wage increases in other sectors. Most of the other sectors are set to begin talks in August. In the meantime, the Federation of Finnish Technology Industries and the Metalworkers’ Union has also approved a two-year agreement.
- 03 Sep 2007
Finland: Unemployed job-seekers to be offered contract workIn accordance with a new guideline issued by the Ministry of Labour, employment offices in Finland are being urged to offer contract work and temporary agency work to unemployed job seekers. However, concerns have been expressed that the new guideline will increase job insecurity and that it is not conducive to permanent employment. The Ministry of Labour argues that there is nothing radically new about the guideline.
- 03 Sep 2007
Finland: Two thirds of companies have introduced gender equality planA two-year old amendment to the Act on Equality between Women and Men has encouraged more employers to prepare a gender equality plan. Under the revised act, employers with at least 30 workers on a regular basis must draft such a plan, providing for a gender equality assessment, measures for improvement and a review of the previous year’s plan. Although the threat of imposing a fine has worked well, about a third of employers still have no plan in place.
- 23 Jul 2007
Finland: Employers favour stronger role for shop stewardsShop stewards are set to play a greater role in the impending negotiation round for new collective agreements. This follows increased support for shop stewards, expressed in recent months by the Confederation of Finnish Industries, the country’s leading employer organisation.
- 09 Jul 2007
Finland: New president of union federation electedThe Chair of the Union of Professional Engineers, Matti Viljanen, has been chosen as the new President of the Confederation of Unions for Academic Professionals (AKAVA). Mr Viljanen was unanimously elected after the other three nominated candidates withdrew from the selection process. Creating a community spirit among affiliated unions of AKAVA in the coming four-year period has cited by the in-coming President as one of the most importiant challenges facing the union.
- 26 Jun 2007
Finland: Nokia Siemens Networks to cut over 1,500 jobsNokia Siemens Networks has announced that it will cut between 1,500 and 1,700 jobs at its Finnish facilities over the next three years. Hundreds of employees at the company’s headquarters in Helsinki walked out in protest after the job reduction plans were unveiled and trade unions accused the company of breaching the Act on cooperation within undertakings.
- 18 Jun 2007
Finland: Unions gear up for decentralised approach to pay bargainingFollowing the announcement by the Federation of Finnish Technology Industries that it would follow a decentralised approach in this year’s bargaining round on incomes, the central social partner organisations are getting ready for the upcoming talks at sector and union level. Meanwhile, Prime Minister Matti Vanhanen has stated that the government would base its tax decisions on the upcoming pay agreements.
- 18 Jun 2007
Finland: Controversy over proposed pay increase for public healthcare employeesThe issue of pay increases in the public sector has emerged as one of the most controversial issues in relation to the impending wage talks. In the last election campaign, politicians largely agreed on the need to raise the pay levels of public healthcare employees. However, economists have warned that the budgetary framework will not allow for significant pay rises for any large group of public-sector employees.
- 13 Jun 2007
Finland: Industrial relations developments 2006 — FinlandIn 2006, the historically record-long national incomes policy agreement (15.2.2005 – 30.9.2007) offered a pay increase which means 2.1% overall cost impact. An emergent trend during the ongoing incomes policy agreement has been the strengthening of so-called continuous negotiation system. This means that social partners have different kinds of joint projects and working groups during the agreement period. Several notable proposals of the tripartite working group materialised in 2006. A new kind of phenomenon and a new move of the tripartite continuous cooperation has been the call of the Ministry of Finance for the leaders of labour market organisations to deliver a joint proposal for new employment measures before the government’s budged proceedings. In general, the year was peaceful in the field of industrial relations; only a fraction of industrial actions took place in 2006 comparing to the previous year. According to the employers’ organisation (EK), great majority of the industrial actions in 2006 were illegal, because the strikes took place in spite of the valid collective agreements.During the year, some trade union mergers were in the making.
- 22 May 2007
Finland: Several candidates in running for AKAVA presidencyIn light of four other nominations, the President of the Confederation of Unions for Academic Professionals (AKAVA), Risto Piekka, has announced that he will not stand again as a candidate for the presidency of the confederation. The open nomination of candidates has been welcomed by affiliated trade unions, as it compels those running for the election to prepare electoral campaigns and to outline their plans for developing the organisation.
- 22 May 2007
Finland: Employers in favour of curtailing strike actionFinnish employer organisations, Technology Industries and the Forest Industries Federation, have declared that the provisions concerning the right to strike are currently far too extensive. The two organisations have asked the new government to begin preparations for a renewal of the industrial peace system and that it should take place during the new government term 2007–2011.
- 22 May 2007
Finland: Progress towards merger of industrial workers’ unionsThe director of the bargaining department in the Central Organisation of Finnish Trade Unions (SAK), Lauri Lyly, was appointed in December 2006 as spokesperson for a project aimed at assessing the viable future relations among six trade unions. The ensuing report recommends that a full merger is the most promising option.
- 22 May 2007
Finland: Competitiveness of pay levels in the public sectorThe Director General of the Office for the Government as Employer, Teuvo Metsäpelto, has warned that the competition between the private and public sectors for skilled and well-educated employees will increase in the near future. During the 2007–2011 period, the government plans to recruit some 20,000 new employees into the public sector. At the same time, about 28,000 employees will retire.
- 18 May 2007
Finland: Representativeness of the social partners: Telecommunications sector - FinlandThis sectoral study examines the representativeness of the main industrial relations actors in the telecommunications sector in Finland as of May 2006.
- 07 May 2007
Finland: Growth in unionisation among clerical staff at NokiaAccording to trade unions, the trade union density level among upper clerical employees at the multinational group Nokia has increased rapidly in recent years. Currently, the trade union density of this group of employees is estimated to stand at about 70%, compared with just 30% prior to 2003.
- 07 May 2007
Finland: Social partners formulate employment plan for new governmentThe employer organisations and trade union confederations prepared a joint employment programme whcih they presented to the in-coming government. The programe contains a list of proposals which focus on enhancing labour mobility.
- 27 Apr 2007
Finland: Proposals for new national incomes policy agreementThe current national incomes policy agreement, which lasted two and a half years, is due to expire at the end of September 2007. The social partners have already put forward their expectations about the possibilities of a new centralised agreement on incomes policy. However, although the government and labour market confederations believe the current agreement to be successful, the conclusion of a new national agreement is uncertain. Some trade unions have stated that they would prefer to have negotiations at sectoral level.
- 27 Apr 2007
Finland: New collective agreement for food and drink sectorIn April 2007, the Finnish Food Workers’ Union and the Finnish Food and Drink Industries’ Federation reached consensus on a new collective agreement for the sector, thus averting the threat of a strike. The agreement period, which will run from April 2007 to the end of March 2010, includes provisions for a 3% pay increase in the first year of the agreement.
- 27 Apr 2007
Finland: Future of tripartite bargaining called into questionThe Managing Director of the Finnish Business and Policy Forum, Sixten Korkman, has published a report assessing tripartite cooperation. He states that, instead of an overall national pay increase, companies should have more leeway to agree on wages at individual workplaces, and even on a personal level with individual employees. However, this proposal has been sharply criticised by the trade unions. All three trade union confederations have given their reaction to the report.
- 23 Apr 2007
Finland: Union campaign to promote voting activity sparks angerIn the run-up to the parliamentary election in March 2007, the Central Organisation of Finnish Trade Unions (SAK) invested €300,000 in a campaign to promote voting activity. However, the organisation was forced to cancel its planned political television advertising campaign, which was aimed at encouraging members of trade unions to vote in the parliamentary election. Entrepreneurs, in particular, were annoyed and offended by the content of the TV advertisements. The Confederation of Finnish Industries has accused SAK of contributing to party politics which affect the prominent position of labour market organisation.
- 23 Apr 2007
Finland: Difficult negotiations on new collective agreements in food industryThe current central incomes policy agreement covers about 90% of all sectors. One major sector that has not been included in the two previous national agreements on incomes policy has been the food industry. All five collective agreements for different subsectors of the industry, concluded by the Finnish Food Workers’ Union and the Finnish Food and Drink Industries’ Federation, expired on 28 February 2007.
- 12 Mar 2007
Finland: Trade unions prepared to consider benefits of local bargainingThe President of the Central Organisation of Finnish Trade Unions, Lauri Ihalainen, has encouraged the trade unions to consider the benefits of concluding local agreements. In this regard, Mr Ihalainen regards the strengthening of the position of employee representatives as a basis for increasing company-level bargaining.
- 12 Mar 2007
Finland: Tripartite group proposes stricter penalties for unjustified use of fixed-term contractsAccording to the tripartite working group of the Ministry of Labour, unjustified use of fixed-term employment contracts will constitute an illegal practice in the future. The current legislation already states that an employer should have proper grounds for using fixed-term contracts. However, the failure to report reasonable grounds for such employment relationships is not punishable for employers at present.
- 19 Feb 2007
Finland: Heavy fines imposed on unions for illegal strikes in pulp and paper sectorThe Finnish Labour Court recently imposed heavy fines on trade unions due to illegal industrial action taken in May 2006 in the pulp and paper sector. However, the Confederation of Finnish Industries considers that the fines are too lenient in comparison with the huge production losses encountered as a result of the industrial action. Despite the severity of the fines imposed, the overall number of strikes held in 2006 represented only a fraction of the level of industrial action reported in 2005.
- 19 Feb 2007
Finland: Improvements in social security entitlements and tax cuts for employeesThe initiatives of tripartite working groups in 2006 have resulted in the introduction of several legislative changes in Finnish employees’ social security and taxation levels. The majority of these changes are a direct result of the proposals of the tripartite working groups. Some of the changes were introduced in 2006, while the remaining changes came into effect on 1 January 2007. The changes include an increase in maternity allowance, better access to paternity leave for fathers, availability of a part-time sickness allowance, an increase in benefits to promote labour mobility, improvements in relation to contractor responsibilities and reductions in taxation.
- 12 Feb 2007
Finland: Increase in cooperation and mergers among trade unionsNegotiations in relation to trade union mergers are becoming more widespread in Finland. A clear incentive for union mergers is the growing number of mergers among employer organisations, but also the increased disputes over union boundaries.
- 29 Jan 2007
Finland: Social partners agree to increase in pension contributionsSocial partners have reached agreement on the extent of pension contributions for employers and employees in the next two years. By means of increased contributions, all parties wish to secure the financing of earnings-related pensions in the future, in light of the ageing of the population in Finland.