Government issues bill on extension of shop opening hours

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In May 2000, the Finnish government presented a bill on the extension of opening hours in the retail trade. Under the proposals, shops could open more often and, in some cases, for longer on Sundays. Trade unions see the change as unnecessary, while employers consider the proposed reform as an intermediate stage on the way towards complete liberalisation of shop opening hours.

The government decided on May 2000 on the content of a bill concerning opening hours in the retail trade. The bill provides for an extension of opening hours, with the aim of improving the competitiveness of smaller shops.

According to the bill, grocer's shops - ie shops whose sales consist mainly of food supplies - with a floor area of up to 400 square metres would be able to open on Sundays between 12.00 and 21.00 Other retail shops could open on Sundays in May and November, in addition to June, July, August and December as currently permitted.

The new bill would add Mother's Day to the list of holidays when shops may not open. Another change compared with the present situation is the proposed closing of shops at 18.00 on New Year's Eve and the day before May Day. It is proposed that furniture and car dealers should be left outside the scope of the new law, while the opening hours of barbers and hairdressers would not be regulated by it. Changes in opening hours on weekdays or Saturdays are not proposed in the bill. Current legislation allows shops to open on weekdays between 07.00 and 21.00 and on Saturdays between 07.00 and 18.00. Opening hours are not regulated for shops, kiosks and stalls located in rural areas, or for petrol stations.

Social partners' views

The Union of Commercial Employees in Finland (Liikealan Ammattiliitto) considers the government's bill unnecessary. In its opinion, nothing has happened since the last amendment to the law that requires a change now. The union does not accept the upper limit of 400 square metres for the grocer's shops concerned by the proposed new Sunday hours, considering that the limit is far too high if the purpose is to support smaller shops in suburban areas. Furthermore, the proposed definitions of grocer's and furniture shops are considered imprecise, which would lead, according to the union, to difficulties in controlling compliance with the law. Positive features in the union's view are that the number of Sundays when shops in general can open would remain almost unchanged, and that shops must close their doors at 18.00 on New Year's Eve and the day before May Day.

According to the Commercial Employers' Association (Kaupan Työnantajaliitto), the proposed reform is not dramatic. What it finds surprising is the setting of the upper limit for extended Sunday opening at 400 square metres, given that larger shops have a market share of over 80% of total retail trade. The organisation sees the proposed reform of the law as an intermediate phase in the development towards total liberalisation of opening hours, without any limiting legislation.

Commentary

The issue of extended opening hours for shops has always aroused strong reactions for and against. However, opening hours have been extended step by step. The conservative National Coalition Party (Kokoomus) in particular has advocated a relaxation of the restrictions, and other parties have gone along with this stance.

In the liberalisation process, the pressure exerted by the market toward the extension of opening hours can be seen clearly. The extension of Sunday opening offers consumers more freedom, since shopping need not be done during evening or Saturday rush hours. From the shops' point of view, the increase in sales may be only marginal, because many purchases are merely made at a different time than before.

It can be estimated that an increase in opening hours may have positive effects on the employment rate, at least as regards the "atypical" employment relationships that are already very common in the retail sector. Especially those workers who need extra income could use this opportunity. The retail trade has traditionally offered jobs for young people and students. However, according to some studies, employment relationships in this sector are not trouble-free, since jobs are in some cases being offered only when the customer is at the counter. In the worst cases, this situation has led to the conclusion of so-called "zero contracts", whereby the worker signs an open-ended employment contract in which the weekly working hours are defined as from 0 to 37.5 hours. In this arrangement, the employer is not obliged to offer work, but the employee is obliged to be available to the employer when needed. Contracts of this sort may become more common as shops compete for customers, but cannot afford to keep the employee at work when there are no customers. The situation of tight competition may, on the other hand, produce the result that the smaller shops do not have the resources to increase their staffing levels - instead, the shop-owners will do the extra work themselves or with the help of existing staff.

It is expected that the opening hours bill will be passed by parliament, although there are disagreements on the matter between left- and right-wing parties in the coalition government. However, a previous bill proposed two years ago failed to win approval by a few votes, so it can be anticipated that the voting may be close this time, too.

It is clear that the issue will not become a major subject of dispute between the social partners. Opening hours have already been extended so that it is possible to sell groceries at kiosks, stalls and petrol stations, and the staff of these outlets may work on Sundays and public holidays. The customers have to pay higher prices, however, than in shops.

Finnish society seems to be moving towards a new rhythm in its shopping and retailing habits, one which will involve a process of adaptation. (Juha Hietanen, Ministry of Labour)