Industrial action and disputes in Finland

The Finnish Constitution guarantees the right to strike but, under the legislation in the Employment Contracts Act and the Act on Mediation in Labour Disputes, strikes are allowed only when a collective agreement has expired and a new contract is yet to be established or when the reason for the strike is something unrelated to the employment conditions, as is the case for political strikes and solidarity actions. The right to strike is also restricted in some sectors, such as healthcare, whose functioning is vital to the safety of society. To be legal, a strike must also be announced to the National Conciliator in advance. The legal types of industrial actions are therefore strikes taking place during a period when no agreement is in force and strikes for political and solidarity reasons. Among the most common forms of industrial action are strikes (lakko) or refusing to work either wholly or partly, walkouts (ulosmarssi) and overtime bans (ylityökielto).

Developments in industrial action, 2012–2022

Note: The numbers provided include all types of industrial action, including not only strikes (the most common form of industrial action), but also threats, embargoes and similar actions.

Source: Statistics Finland, 2020a

Collective dispute resolution mechanisms

The mediation system is based on Finland’s Act on Mediation in Labour Disputes. The National Conciliator, together with other part-time conciliators at the National Conciliator’s Office, assist the negotiating partners if a collective agreement cannot be reached without outside help. The parties can voluntarily involve the National Conciliator’s Office in collective bargaining rounds without there being a threat of collective action. The central labour market organisations can also be assisted by the National Conciliator when drawing up comprehensive incomes policy agreements. It is compulsory to participate in the mediation of labour disputes, but the different sides do not have to accept the National Conciliator’s proposal. The Labour Court handles cases related to violations of the collective agreements and can issue fines in cases of illegal industrial action. The new Co-operation Act is meant to strengthen social dialogue in the workplace.

Individual dispute resolution mechanisms

Individual labour disputes arising out of individual employment contracts concluded between a single employer and a single employee or arising out of the legislation regarding employment relationships – and indeed any labour dispute not falling within the scope of the Labour Court– are dealt with as ordinary civil cases, in the first instance by the district courts (alioikeus). District courts are made up of professional judges and, in certain cases, lay judges. The decision of a district court can normally be appealed against in a court of appeal (hovioikeus), and a decision of the latter can be appealed against in the Supreme Court (korkein oikeus). The individual employment disputes that are referred to the district courts typically relate to matters such as pay and termination of employment contracts. In individual employment law cases before the civil courts, there is no direct involvement of trade unions, and such cases cannot be brought by unions without the worker’s consent. The district courts and courts of appeal can impose fines in employment-related cases.

Use of alternative dispute resolution mechanisms

Disputes resolved in the Labour Court are much more common than those mediated by the National Conciliator. Of the 82 rulings in the Labour Court during 2022, 29 were connected to strikes, threats of strike or other industrial action.

Use of dispute resolution mechanisms: number of labour disputes mediated by the National Conciliator, 2012–2022

Note: n.a., not available.

Source: National Conciliator’s Office, 2022; undated; Labour Court, undated