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Finland: Industrial relations profile

 

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Background

Two governments were in office during 2011 under Prime ministers Mari Kiviniemi (Centre) and Jyrki Katainen (National Coalition). Kiviniemi’s outgoing centre-right government consisted of the Centre, National Coalition, Greens, and Swedish People’s Party.

Parliamentary elections were held in April 2011. The True Finns party grew significantly, increasing its number of seats from five to 39 (out of 200), to become the third largest party. The National Coalition received the most seats, 44, whereas the Social Democrats came in second place, with 42 seats. The other five parties that gained seats were Centre, Left Alliance, Greens, Swedish People’s Party, and Christian Democrats.

Negotiations to form a majority government were unusually difficult and the True Finns eventually remained in opposition. Programme negotiations started with six parties (all except True Finns and Centre). They were concluded in June 2011, when a new six-party government was formed.

The new government, headed by Prime Minister Katainen, covers a broad political spectrum. The Finance Minister is Jutta Urpilainen (Social Democrats). Other key ministers in the area of economy and labour are Jyri Häkämies (National Coalition) and Lauri Ihalainen (Social Democrats). The government places considerable emphasis on maintaining a high employment rate and developing working life, but is watchful of the tightening financial situation.

After the formation of the government, Prime Minister Katainen told parliament that he would invite labour market leaders for talks on the state of the economy in August, with the focus on job creation and safeguarding the economy’s competitiveness.

The new government has emphasised good relations with social partners, and the new Minister of Labour, Lauri Ihalainen, is a former President of the Central Organisation of Finnish Trade Unions (SAK).

The most essential legal framework for collective bargaining is the Collective Agreements Act (Työehtosopimuslaki) of 1946, which is complemented by basic agreements between union confederations and employer associations.

Labour market relations are characterised by close cooperation between the state and the social partners. Almost all legislation concerning working life is based on a tripartite consensus.

 

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