Nokia accused of labour rights violations

In January 2005, a group of shop stewards at the Finnish-based multinational Nokia accused the company of disregarding workers’ rights. They alleged that Nokia has adopted such obstructive practices that it has been impossible for them to perform their role as trade union representatives. Moreover, they argued that the position of redundant workers at the company is too vulnerable. Nokia has rejected much of the criticism but has promised to improve the position of shop stewards.

Nokia, the Finnish-based mobile telephones multinational, has a reputation for being a company that follows ethical standards in its labour relations. What the company refers to as the 'The Nokia Way' states that it involves taking workers’ needs and ideas into account as fully as possible. This positive image has contributed to the fact that Nokia is one of the most popular employers among job applicants in Finland. Internationally, as well, Nokia has a good image and it has expressed its commitment to the core International Labour Organisation (ILO) labour standards in its company code of conduct. Monitoring of compliance is limited but at least one independent study, in which a plant in Brazil was surveyed, confirmed that Nokia is committed to these standards. Considering the company’s positive image, it came as a surprise for many in January 2005 when Nokia’s labour practices in Finland were strongly criticised.

Criticism over position of shop stewards

The investigative TV programme MOT ran a special on Nokia in January 2005. The programme included interviews with Ari Kiiras, the chief lawyer at the Federation of Professional and Managerial Staff (Ylempien Toimihenkilöiden Neuvottelujärjestö, YTN), and five YTN shop stewards employed by Nokia in Finland. The interviewees stated that shop stewards’ rights are not respected at the company. Far too little time is allowed for trade union representatives’ duties, according to the shop stewards. They stated that they can spend only 20%-30% of their working time performing the functions of shop stewards, while they have very tight work schedules and many employees to represent. One of the interviewees said that he represents about 1,700 employees but, nevertheless, had been given a written warning for spending too much time doing shop steward work. YTN is planning to sue Nokia for infringing his rights as a shop steward.

Nokia currently employs about 20,000 white-collar professionals in Finland who are represented by 25 shop stewards, the ratio of employees to shop stewards thus being about 1,000 to one. The collective agreement for Nokia’s white-collar professional metalworkers states that the amount of time allowed for shop stewards’ tasks should be 'adequate' for the completion of those functions. In comparison, Nokia’s blue-collar metalworking sector collective agreement guarantees all shop stewards who represent more than 500 workers exemption from other work duties.

The interviewed shop stewards also alleged that lack of information is a serious problem at Nokia. They said they are not given even basic information concerning personnel and pay conditions, despite trying to obtain access to such information for some time. This makes monitoring the compliance of Nokia with various regulations impossible. Ari Kiiras of YTN agrees that information given to shop stewards is not adequate at Nokia. He is also aware of the lack of time said to be provided for union representatives’ duties. Overall, he is of the opinion that the alleged bad treatment of shop stewards is systematic on the part of Nokia. YTN has contacted the company several times trying to improve the situation but Nokia has not been cooperative, he claimed.

Redundant workers’ rights questioned

In addition to their own situation, the YTN shop stewards find the position of redundant workers at Nokia particularly problematic. According to the [Act on Cooperation within Undertakings](http://www.finlex.fi/en/laki/kaannokset/1978/en19780725?search[type]=pika&search[pika]=co-operation act), shop stewards are to be given information on all people made redundant due to reasons related to economic or productive changes (FI0311203T). If such information is not given, as the Nokia shop stewards interviewed insist is the case, it is not possible for shop stewards to know whether workers are made redundant on valid grounds or not, or to monitor Nokia’s duty to re-employ redundant workers. Under Finnish legislation, firms have the obligation to re-employ workers who lose their jobs in the aforementioned circumstances, within nine months of having made them redundant, if the same or similar job opportunities open up within the company. Three former Nokia employees, who were also interviewed in the MOT programme, believe they have been unlawfully dismissed and have decided to take legal action against the company.

Ari Kiiras of YTN is also of the opinion that Nokia has not always complied with its duty to re-employ redundant workers. Furthermore, he claims that it is standard practice at the company to compel employees to look for new jobs within Nokia themselves, although work should be offered to them by the employer.

Nokia promises improvements

Nine days after the TV programme was broadcast, the management of Nokia met all the company’s 25 YTN shop stewards to discuss the union representatives’ position at the company. The management promised improvements but no concrete measures were decided upon. Instead it was agreed that three separate working groups, each consisting of shop stewards, managers and members of personnel management, would discuss the matter further and make proposals for change.

In addition to acknowledging the problem and committing itself to improving the situation, Nokia also repudiated much of the criticism laid against it. The chief of Nokia’s operational personnel management, Ari Lehtoranta, insisted in an interview that the position of white-collar professionals' union representatives has, on the whole, been good. The basic rule at Nokia has, he says, been that they can use 20%-50% of their working time for these tasks, and upward flexibility has been granted on a case-by-case basis. Sometimes this flexibility may not have been granted by organisational superiors or personnel management when this would have been due, Mr Lehtoranta acknowledges. However, he dismisses all allegations that violations of labour rights have been systematic and points out that Nokia has only been found guilty of one minor offence in its personnel policy in Finland in recent years. This, together with the fact that employees have expressed in surveys their contentment with working at the company, shows that Nokia has taken care of its personnel, he maintains.

Commentary

Nokia has worked hard to create a public image of itself as a company with social responsibility and it has done this with success. Maintaining a positive image is of paramount importance to a company, since it only takes one scandal to ruin it for a long time. It therefore seems unlikely that Nokia would implement conscious policies that test the limits of labour legislation and collective agreements at its core units in Finland. It is more probable that attention to labour rights has lagged behind in the list of priorities of the rapidly growing company. Arguably incompetent individual managers who have disregarded regulations or have not been familiar with them may also be to blame.

Now that the problems identified by the shop stewards are known throughout the Nokia organisation and have attracted considerable media attention, labour rights at the company may receive more focus. Going public was thus good for the shop stewards. It may also help YTN in the current negotiations over a collective agreement for the metalworking sector's professional employees, who include the shop stewards interviewed. The negotiations concern 57,000 employees, and as many as 20,000 of them work at Nokia. It is the single largest agreement that is not being concluded as part of the new national incomes policy agreement for 2005-7 (FI0501203F). The main goals of YTN in the negotiations are to obtain better compensation for overtime work and travel time and to improve the position of shop stewards. With regard to the latter goal, its bargaining position has now considerably improved. (Aleksi Kuusisto, Labour Institute for Economic Research)