Unemployed job-seekers to be offered contract work

In accordance with a new guideline issued by the Ministry of Labour, employment offices in Finland are being urged to offer contract work and temporary agency work to unemployed job seekers. However, concerns have been expressed that the new guideline will increase job insecurity and that it is not conducive to permanent employment. The Ministry of Labour argues that there is nothing radically new about the guideline.

The Ministry of Labour (Työminsteriö) has introduced a new guideline urging local employment offices to increase job opportunities for unemployed people by offering them contract work, part-time work or jobs outside of their own commuting area. Officials at the ministry claim that contract work was not being offered to unemployed persons. In addition, the obligation on the unemployed person to accept the offer of employment will be tightened. Accordingly, an unemployed person who receives a job offer is obliged to make contact with an employer to arrange for a job interview within four days instead of two weeks, as was previously stipulated.

Reactions to new guideline

The new guideline has come as a surprise to many organisations, including the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK). According to SAK’s lawyer and working conditions expert, Janne Metsämäki, the guideline had not been prepared in the normal way and usually such matters are decided following tripartite discussion. Mr Metsämäki agreed that the guideline’s aim of offering different kinds of jobs to unemployed people is, in general, worthy of support. However, he contended that ‘if this aim is reached only by increasing insecure employment, it will not lead to permanent employment’.

In particular, Mr Metsämäki is concerned about a possible increase in the level of contract work and temporary agency work, and that people will begin to consider contract work as a normal part of working life. SAK has recently requested that the terms of employment for contract work should be same as those for other employment contracts, including in relation to annual leave entitlements and other benefits. SAK points out that the current legislation does not offer adequate protection to those hired by temporary work agencies, although the extent of hired labour recruited through job agencies has increased significantly in recent years.

The Executive Director of the National Cooperation Organisation for Unemployed Persons (Työttömien Valtakunnallinen Yhteistoimintajärjestö, TVY), Lea Karjalainen, also expressed her surprise regarding the new guideline. Nevertheless, Mrs Karjalainen considers the obligation to increase offers of contract work as a logical continuation of the government’s labour force policy. According to Mrs Karjalainen, employment policy is increasingly being directed by market forces.

Guideline to act as reminder of existing provisions

A spokesperson for the Ministry of Labour, Marja Rantakaulio, insisted that the new guideline does not actually reverse any former provisions. According to Mrs Rantakaulio, the guideline has been introduced due to the fact that the number of employment designations has recently declined, and in line with the tripartite aim to increase offers of employment. Mrs Rantakaulio emphasised that employment offices were previously entitled to offer contract work. The new guideline has been introduced merely as a reminder to employment offices that this type of opportunity exists. As Mrs Rantakaulio added: ‘In the public employment services, job agencies are considered to be like other employers.’

Commentary

Promoting labour mobility has been a key issue among the central social partners in recent times (FI0701029I). The trade unions have been particularly critical of the way in which employers are using contract labour from job agencies. However, organisations such as SAK have also emphasised that they do not wish to totally ban the use of contract work. The confederation admits that for some people, like students, contract work may be suitable, while providing a gateway to further employment opportunities.

Pertti Jokivuori, Statistics Finland