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Finnish trade union angle on globalisation: Everything at stake
- safeguarding interests in a world without frontiers


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New Employment Contracts Act in force:
Interpretation of the generally binding character
of collective agreements now demands the attention
of the union movement

Helsinki (21.12.2001 - Juhani Artto) Finland's new Employment Contracts Act (no. 55 of 2001) took effect on 1 June 2001. The last bone of contention in the long process of drafting the law concerned the general applicability of collective agreements. The trade union movement lobbied strongly on this point and secured an acceptable formulation. The country's conservative Coalition Party, on the other hand, sought to weaken the regulations on this point, which is perceived by employee organisations as one of the utmost importance.

This dispute has not yet been fully resolved, however, as application of the Act is more than a mere technicality. Although collective bargaining is very much the norm in Finland, there remain some industries, trades and professions in which it has not yet taken root. This means that the independent organ appointed to decide on the general applicability of collective agreements is currently under considerable scrutiny. This organ has so far authorised 17 collective agreements as generally binding, while two were rejected. There are about 200 national collective agreements and the organ must consider all of them by October 2002.

"The rejections were made on incorrect principles", says the legal expert Jorma Rusanen of Finland's largest central trade union confederation SAK, and he insists: "the committee only considered the first criterion, concerning the number of employees of organised employers in the industry concerned. The other criterion, concerning an established pattern of collective bargaining and the organising rate of employees, should also be given significance."

The first criterion is that whenever about half of the employees in a certain industry, trade or profession work for organised employers the respective collective agreement should have generally applicable status outright. Since not only employees but also employers in Finland have a high organising rate, most collective agreements easily fall into the generally applicable category by this criterion.

However, collective bargaining structures in the new industries such as information technology have yet to become established. There are also problems in the case of senior salaried employees. These workers have come into conflict with employers who are unwilling to enter into collective agreements with the union organisations of senior salaried employees.

In some cases it is difficult to secure an effective count of the number of employees working in an industry covered by a collective agreement. Such a figure is necessary for applying the approximate "half of the employees" criterion used to determine general applicability. The figure ought to be available, but often is not. In its labour statistics the Statistics Finland organisation uses other criteria.

 
Other sites on economy and working life:

viiva.jpg (1278 bytes) Occupational safety and health in Finland, Socius 2-2001 (pdf-file)
viiva.jpg (1278 bytes)
Documents of the SAK 16th Congress 28-30.5.2001
viiva.jpg (1278 bytes) Ten years of working conditions in the European Union, Eurofound's research summary (pdf-file)
viiva.jpg (1278 bytes) In terms of real property, one Finland equals two Nokias, Helsingin Sanomat 08.01.2001
viiva.jpg (1278 bytes) The growth of the Finnish economy did not eradicate unemployment, Helsingin Sanomat 03.01.2001
viiva.jpg (1278 bytes) Only one Finn in nine actually retire as late as 65, Helsingin Sanomat 02.01.2001
viiva.jpg (1278 bytes) Incomes policy agreement approved; The incomes policy agreement in a nutshell;The economic backgrounf of the incomes policy agreement  SAK 15.12.2000
viiva.jpg (1278 bytes) Collective bargaining in Finland 1999-2000, Pekka Sauramo, Labour Institute for Economic Research, Helsinki (pdf-file)
viiva.jpg (1278 bytes) Working environment greater cause of absenteeism than lifestyle Helsingin Sanomat International Edition 05.12.2000
viiva.jpg (1278 bytes) New job creation down 50 % this year Helsingin Sanomat International Edition 01.12.2000
viiva.jpg (1278 bytes) Made in Hong Finland Helsingin Sanomat International Edition 28.11.2000
viiva.jpg (1278 bytes) Bars and restaurants among Finland's most hazardous work places Helsingin Sanomat International Edition 27.11.2000
viiva.jpg (1278 bytes) Finland faces labour shortage in all sectors in 2005 Helsingin Sanomat International Edition 23.11.2000
viiva.jpg (1278 bytes) New two-year incomes agreement announced Helsingin Sanomat International Edition 17.11.2000
viiva.jpg (1278 bytes) Increased disparities in wealth distribution Helsingin Sanomat International Edition 09.11.2000
viiva.jpg (1278 bytes) Floating shopping centers might become a thing of the past Helsingin Sanomat International Edition 24.10.2000
viiva.jpg (1278 bytes) SAK member unions vote to go with two-year wage deal Helsingin Sanomat International Edition 03.10.2000
viiva.jpg (1278 bytes) National Economy
and State Finances

Ministry of Finance
viiva.jpg (1278 bytes) Occupational Safety and Health Ministry of Social Affairs and Health
viiva.jpg (1278 bytes) Dispute highlights threats to Finnish seafarers' jobs eironline
viiva.jpg (1278 bytes) Strikes break out as bargaining round nears conclusion eironline
viiva.jpg (1278 bytes) "Barometer" examines industrial relations in Baltic states eironline
viiva.jpg (1278 bytes) Strike levels fall in 1999 eironline
viiva.jpg (1278 bytes) Action programme launched to promote "ability to cope" at work eironline
viiva.jpg (1278 bytes) SAK computer campaign proves successful eironline
viiva.jpg (1278 bytes) European working time conference held in Helsinki
eironline

More on
and in Finland:

viiva.jpg (1278 bytes) Etusivu - The Finnish Link Resource
viiva.jpg (1278 bytes) Helsinki Camera - Views over the city
viiva.jpg (1278 bytes) Virtual Finland - Information about Finland - Facts about Finland
provided by the Ministry for Foreign Affairs

viiva.jpg (1278 bytes) Finland - World Fact Book entry - tons of links!
viiva.jpg (1278 bytes) Statistics Finland
viiva.jpg (1278 bytes) Helsingin Sanomat - International Edition - News from Finland
viiva.jpg (1278 bytes) Need a reliable lawyer - The Finnish Bar Association can help
viiva.jpg (1278 bytes) Moving to Finland? - Directorate of Immigration
viiva.jpg (1278 bytes) Ministry of Labour Migration affairs page
viiva.jpg (1278 bytes) National Equal Opportunities Network - Fighting discrimination