Transcript Dia 1 - Red River College

Industrial relations
and
labour legislation in Finland
8 May 2007
Finnish industrial relations model: typical features
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High rate of organization – both employers and employees (70 % of employees
are trade union members)
90 % of employees are covered by collective agreements
Social partners play an important role in reforming society and working life
Social partners are involved in:
– collective bargaining
• Central labour market organisations negotiate incomes policy agreements covering the
general framework for wages and questions relating to labour law and working life
• trade unions and employer organisations negotiate sectoral level collective agreements
covering eg. working conditions, wages and working-time arrangements
– drafting of labour and social legislation in tripartite co-operation
– management and revision of social security schemes in tripartite co-operation
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Long traditions: employer and employee confederations established 100 years
ago, first centralised incomes policy agreements concluded in 1968
The Finnish negotiation system has had a strong impact on economic growth,
competitiveness, productivity, employment rate and standard of living
8.5.2007
Anu Sajavaara
Trade union density and collective bargaining coverage in the EU
Denmark
Sweden
FINLAND
Cyprus
Belgium
Malta
Luxembourg
Ireland
Slovenia
Austria
Italy
Slovakia
Greece
Portugal
EU-15
Germany
Czech Republic
Latvia
EU-25
United Kingdom
Netherlands
EU-10
Hungary
Spain
Poland
Lithuania
Estonia
France
Trade union density
Collective bargaining coverage
0
10
20
30
Per cent of total work force
Source: Industrial relations in the EU, USA and Japan 2002 (EIRO)
17.6.2005
8.5.2007
Seppo
Saukkonen
Anu Sajavaara
Työmarkkinat\Kv. työmarkkinaseuranta
40
50
60
70
80
90
100
Employers’ central organisations in Finland
930 000 employees
570 000 employees
State,
municipality
and church
State
120 000
Municipality 430 000
Church
20 000
8.5.2007
Anu Sajavaara
Confederation
of Finnish Industries
EK
35 branch associations
16 000 member companies
Employees’ central organisations in Finland
1 100 000 employees
SAK
650 000 employees
The Central Organisation of
Finnish Trade Unions
STTK
blue-collar workers,
22 member unions
430 000 employees
The Finnish Confederation
of Salaried Employees
AKAVA
white-collar workers,
20 member unions
The Confederation of
Unions for Academic
Professionals in Finland
academic professionals,
32 member unions
8.5.2007
Anu Sajavaara
Social dialogue at European level:
European social partners
• For the Employers:
– BUSINESSEUROPE/UEAPME
– CEEP
• For the Employees:
– ETUC, Eurocadres
• Overall co-ordination for cross-industry social dialogue is provided
by the Social Dialogue Committee consisting of Commission
representatives and the Social Partners
8.5.2007
Anu Sajavaara
Types of collective agreements in Finland
• Comprehensive incomes policy agreements
– central organisations agree on wages and other benefits
– government agrees on certain legislative measures (eg. taxes, social
benefits)
• Sectoral agreements
– branch organisations
– separately for blue collar and white collar workers
• Company agreements
– only few
• Local agreements (bargaining at workplace level)
About 250 collective agreements in EK’s member companies
8.5.2007
Anu Sajavaara
Collective bargaining system in Finland
Procedure 1
Procedure 2
Central organisations’ framework
agreement
No central organisations’ framework
agreement
• frame wage settlement
• other labour market issues (working time, social
policy, training)
• possible Government involvement (legislative
measures, taxation)
• variation in coverage
• no willingness or
• no prerequisites for an agreement
Sectoral agreements
• branch-specific and binding agreements about all conditions of employment
• possibility to agree on certain issues at local level
• commitment to industrial peace
Conciliation in labour disputes
• national Government conciliator
• obligation to take part in conciliation
• conciliator can not force industrial peace
8.5.2007
Anu Sajavaara
Finnish labour legislation: typical features
• Highly detailed
• Mandatory provisions
• Possibility to derogate from some provisions by collective
agreements
• Legislative acts drafted in tripartite cooperation (committees)
• Strongly influenced by EU legislation
8.5.2007
Anu Sajavaara
Labour legislation by issues
Traditional legislation
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Employment Contracts Act (reformed in 2001)
Collective Agreements Act (from 1946; general principles for collective bargaining)
Working Hours Act
Annual Holidays Act
Occupational Health and Safety Act
Information and consultation
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–
Act on Cooperation within Undertakings
Personnel representation in the administration of undertakings
New issues
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–
8.5.2007
data protection and privacy in working life
atypical work (eg. temporary agency work)
Anu Sajavaara
Main features of the
Finnish labour market model
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Responsibility, general commitment to agreements
Predictability and stability
Pragmatism and willingness to negotiate on both sides
Success in getting results, solution-orientated processes
Flexibility and adaptability of the model: common
interest to find new solutions in problematic situations
– e.g. Act on Cooperation within Undertakings and the Finnish
model for dealing with industrial changes (“change security”)
8.5.2007
Anu Sajavaara
Future challenges of the social dialogue
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Facing demographic change: ageing population and its consequences
– how to finance the maintenance of welfare (public services, pensions etc.)
– how to maintain growth and employment
– how to ensure a sufficient supply of skilled workforce
•
Maintaining competitiveness in global competition
– how to combine flexibility and security (flexicurity)
• employers’ growing need to shift more decision-making to the company level
(eg. wage formation and pay increases, working time)
• from job security to employment security
• Increasing occupational and geographical mobility
• continuous negotiations in all major sectors of the economy
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8.5.2007
Ensuring industrial peace (most strikes in Finland are illegal)
Tackling the rigidities of the negotiation system – how do we move towards
more flexible framework agreements and local/workplace bargaining?
Anu Sajavaara