Helsinki (16.03.2002 – Juhani Artto) The three SAK unions organising engineering, construction and private service workers are demanding legal reforms to prevent pay and social dumping in the enlarged EU. In a letter to the government and Parliament of Finland these organisations stress that Finnish legislation leaves room for abuses when an enterprise based in another EU Member State offers hired labour or subcontracting services.

The unions back their demands with the results of a new study by labour law expert Jari Hellsten published in November 2001. The study reveals that inspection of hired labour coming from abroad and of employees sent by foreign subcontractors is much less rigorous in Finland than in the other EU Member States.

There are also other differences that the three unions seek to eliminate. The sanctions for abusing foreign labour are severe elsewhere in the EU. Public authorities and employee organisations in other Member States also have much greater and more diverse powers in this area than do the corresponding organs in Finland.

Employee organisations elsewhere in the EU even have the independent right to bring civil actions against abusing enterprises, which is especially important in cases involving foreign workers. While individual workers have such rights in Finland, foreigners are generally disadvantaged when taking legal action against their employers.

There are practically no rules in Finland governing the hiring of foreign labour and the use of workers sent by foreign subcontractors. This creates a loophole in regulations on transition periods for free movement of labour from the new Member States.

On these grounds the three unions – Finnish Metalworkers' Union - Metalli, the Finnish Construction Workers Union and Service Unions United – have formulated a list of demands. The unions are calling for organisations to have an independent right to file civil actions against abusers, for public authorities to receive extended powers and increased resources to mount inspections, and for a significant increase in the sanctions applicable to cases of foreign labour abuse.

The commissioning enterprise in Finland must be made responsible for the pay of migrant workers and the employees of subcontractors. The inspection rights of shop stewards and labour protection representatives at the commissioning enterprise must be extended to include these workers and employees.

Enterprises that infringe the rules must be excluded from public procurement, including subcontracting.

The work permit procedure for migrant workers must be subject to tripartite consideration procedures.

Co-operation between the Occupational Safety and Health Administration, tax authorities and police must also be tightened and extended to make hiring and subcontracting more transparent, thus helping to tackle pay and social dumping and the grey economy.

The unions emphasise the importance of introducing the proposed legal reforms so that they take effect before the accession of new Member States the EU.

------