Living and working in Finland

08 March 2023

Data source: Eurostat

Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.

Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe. 

The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of  the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.

 

2015 Eurofound EWCS survey results in Finland: 78% of people receive the recognition they deserve for their work

Living and working in Finland and COVID-19

COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.

Explore our data pages by country to find out more on the situation in Finland.

 

The country page gives access to Eurofound's most recent survey data and news, directly related to Finland:

Research carried out prior to the UK’s withdrawal from the European Union on 31 January 2020, and published subsequently, may include data relating to the 28 EU Member States. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise.

Survey results

​Life satisfaction
Data source: 2016 EQLS survey

Ability to choose or change
methods of work
Data source: 2015 EWCS survey

Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey

Recent developments

Eurofound contacts in Finland

Correspondents in Finland

Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more

Oxford Research AB

Eurofound Management Board members from Finland

Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more

Antti Närhinen Ministry of Economic Affairs and Employment

Katja Miettinen Confederation of Finnish Industries (EK)

Juha Antila Central Organisation of Finnish Trade Unions (SAK)

Related content

More resources on Finland

Other country-specific information may be available in certain areas on demand. Please feel free to contact your country contact at Eurofound for this or any other information at information@eurofound.europa.eu

Living in Finland

Print pdf

Quality of life

Quality of life

Based on the selected indicators, the quality of life in Finland is high. Finland ranks highest in happiness, reaching 8.2 on a 10-point scale in 2016 versus an EU average of 7.4. Respondents in Finland also report a very high level of participation in sports or other physical exercise; 79% do sports at least once a week, this being the highest rate among the Member States. However, self-reported health in Finland is relatively low compared to the other EU countries; in 2016, only 19% of respondents reported their health to be ‘very good, which is well below the EU average of 24%.

People in Finland seem to be very optimistic about both their own future and their children’s or grandchildren’s future. In 2016, 81% of people in Finland were optimistic about their own future (close to the top-ranking country Sweden with 85%), and 86% of people felt optimistic about their children’s and grandchildren’s future, being the top ranking country in 2016.

Improvements can be seen since 2011 in many of the quality of life indicators in Finland. The share of people doing sports at least once a week increased by 7 percentage points from 2011, reaching 79% in 2016. The share of respondents reporting ‘very good’ health improved by 3 points since 2011, rising to 19% in 2016, which is also slightly above the pre-crisis level of 18% in 2007. Another positive development is the decrease in the share of people reporting problems in making ends meet – the 7 percentage-point drop (from 25% in 2011 to 18% in 2016) sets the level in 2016 even below the 2003 value of 20%.

  2003200720112016
Life satisfactionMean (1-10)8.18.28.18.1
Taking all things together on a scale of 1 to 10, how happy would you say you are?Mean (1-10)8.28.38.18.2
Optimism about own futureAgree & strongly agree---81%
Optimism about children’s or grandchildren’s futureAgree & strongly agree---86%
Take part in sports or physical exerciseAt least once a week--72%79%
In general, how is your health?Very good-18%16%19%
WHO-5 mental wellbeing indexMean (1-100)-656667
Making ends meetWith some difficulty, difficulty, and great difficulty20%19%25%18%
I feel I am free to decide how to live my lifeStrongly agree--34%34%
I find it difficult to deal with important problems that come up in my lifeAgree & strongly agree---18%
When things go wrong in my life, it generally takes me a long time to get back to normalAgree & strongly agree---14%

Work-life balance

Work-life balance

Problems related to work–life balance have increased in almost all the years of observation in Finland. When looking at the breakdowns by gender, women have experienced the most pronounced increases in work–life balance problems. However, in comparison to the EU28 average, work–life balance problems are still less common in Finland.

  2003200720112016
(At least several times a month)   

I have come home from work too tired

to do some of the household jobs which need to be done

Total42%43%46%50%
Men46%39%42%40%
Women39%48%49%60%
      

It has been difficult for me to fulfil my family responsibilities

because of the amount of time I spend on the job

Total15%20%17%26%
Men13%19%14%21%
Women17%20%21%31%
      

I have found it difficult to concentrate at work

because of my family responsibilities

Total6%7%8%16%
Men7%7%4%12%
Women5%8%12%20%

Quality of society

Quality of society

Finland performs well on average in the quality of society indicators, and ranks top among the EU28 with regard to trust in people, reach 7.4 on a scale of 1 to 10 in 2016. Also, 62% of the respondents feel safe when walking alone after dark, close to top-ranking Denmark with 63%.

Most of the indicators on the quality of society have improved from 2011. The Social Exclusion Index and level of trust in people have improved alongside decreasing tensions between poor and rich people. Interestingly, perceived tensions between different racial and ethnic groups in Finland have been moving against the common current of the EU28, as a majority of western and northern European Member States experienced substantial increases in perceived tensions between 2011 and 2016. Even though a substantial share of people in Finland report a lot of tension between different racial and ethnic groups (35%), the share is still below the EU average (41%) and is similar to the 2011 value.

  2003200720112016
Social exclusion indexMean (1-5)-2.02.01.8
Trust in peopleMean (1-10)7.27.07.17.4
Involvement in unpaid voluntary work% "at least once a month"--14%14%
Tension between poor and rich people% reporting 'a lot of tension'19%13%17%15%
Tension between different racial and ethnic groups% reporting 'a lot of tension'36%32%36%35%
I feel safe when I walk alone after darkStrongly agree- -62%

Quality of public services

Quality of public services

Quality ratings for seven public services

Note: scale of 1-10, Source: EQLS 2016.

All the quality rankings for public services in Finland are above the EU28 average. Especially well performing are the quality of the education system (8.3 on a scale of 1 to 10, highest among the EU28 countries), childcare services (7.9, close to the top-ranking Malta at 8.0) and health services (7.6, close to the top-ranking Austria at 8.0). The worst performing public services are long-term care services (6.7), public transport (6.9) and social housing (6.9). The state pension system ranks low on average in the EU28 (5.0), but in Finland it gets a rather positive rating, on average 7.0.

All the public services rankings improved from 2011, but ratings for the education system and public transport have not yet bounced back to their pre-crisis levels of 2007.

  2003200720112016
Health servicesMean (1-10)7.47.67.17.6
Education systemMean (1-10)8.28.48.28.3
Public transportMean (1-10)7.67.36.86.9
Childcare servicesMean (1-10)-7.97.77.9
Long-term care servicesMean (1-10)--6.36.7
Social housingMean (1-10)--6.66.9
State pension systemMean (1-10)7.47.06.77.0

Working life in Finland

Print pdf

About

  • Author: Amanda Kinnunen, Rasmus Firon, Maija Kaartinen, Lisa Tönnes Lönnroos and Anna Savolainen
  • Institution: Oxford Research
  • Published on: Thursday, ágúst 5, 2021

This profile describes the key characteristics of working life in Finland. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.

 

Highlights – Working life in 2021

Highlights – Working life in 2021

Author: Amanda Kinnunen
Institution: Oxford Research
Highlights updated on: 19 May 2022
Working paper: Finland: Working life in the COVID-19 pandemic 2021

Due to the high vaccination rate and systematic testing among the population, Finnish society could start to re-open in 2021. This, in combination with the rapid recovery of the world and national economy, was mirrored in the positive growth in the labour market. However, towards the end of the year, the wave of infections due to the Omicron variant resulted temporarily in new social distancing regulations.

In 2021, Finnish government was in a position to shift from more reactive COVID-19 measures towards an increased focus on long-term measures facilitating recovery from the economic and social crisis caused by the COVID-19 pandemic. Responsibility for managing the COVID-19 crisis also shifted to regional and local levels.

In 2022, increasing employment levels will be a central goal for the social partners, given that long-term unemployment increased significantly during the COVID-19 crisis. Already during 2021, the Finnish Government introduced several measures to increase the employment rate:

  • establishing a state-owned work agency that hires people with partial work ability
  • reintroducing training services aimed at the working-age population
  • investing in mental health services aimed at preventing sick leave and disability pensions
  • providing more active support for newly registered job-seekers and requiring job-seekers to apply for a number of jobs in order to qualify for the unemployment allowance

In parallel to the increased number of long-term unemployed, labour shortages have made headlines in 2021. Severe labour shortages in the social and healthcare sector have led to the closure of healthcare units across the country. In addition, despite the large number of unemployed, many Finnish companies have experienced severe problems with recruitment which hinders their growth. In 2022, the social partners will work on finding ways to diminish the gap between those seeking jobs and those recruiting.

The beginning of 2022 will be interesting from an industrial relations perspective as the collective bargaining round continues until the end of spring 2022. As of February 2022, while many sectors have already concluded agreements, some of the hard-hit sectors (for example, hotels and restaurants) have yet to conclude agreements. Furthermore, the negotiations on wage increases for nurses and other healthcare personnel are expected to be tough. Large-scale labour shortages and two years of COVID-19 pandemic have raised the stakes from the trade union side.

Key figures

Key figures

Comparative figures on working life in Finland

 

2019

2020

% (point) change 2012–2019

% (point) change 2019–2020
 

Finland

EU27

Finland

EU27

Finland

EU27

Finland

EU27

GDP per capita

37,230

27,970

36,140

26,230

5.9%

11.5%

-2.9%

-6.2%

Unemployment rate – total

6.7

6.7

7.8

7.1

-1.0

-4.1

1.1

0.4

Unemployment rate – women

6.2

7

7.5

7.3

-0.9

-4.0

1.3

0.3

Unemployment rate – men

7.2

6.4

8

6.8

-1.1

-4.3

0.8

0.4

Unemployment rate – youth

17.2

15

21.4

16.8

-1.8

-8.7

4.2

1.8

Employment rate – total

78.3

73.4

78.3

72.9

3.1

2.4

0.0

-0.5

Employment rate – women

76.6

67.9

76.5

67.5

3.2

3.0

-0.1

-0.4

Employment rate – men

79.9

79

80

78.3

2.8

1.8

0.1

-0.7

Employment rate – youth

53.9

39.4

52.2

37.9

2.3

-0.4

-1.7

-1.5

Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average, (15–74 years, % active population) and youth (1 –24 years) % [une_rt_a]; Employment rate by sex and age – annual average, (15–64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].

Background

Background

Economic and labour market context

Between 2012 and 2019, Finland’s GDP increased by 5.9%, in contrast with the EU average increase of 11.5% for the same period. During this time, unemployment rate decreased from 7.7% in 2012 to 6.7% in 2019 and increased again to 7.8% in 2020. Looking at employment figures, an overall increase from 75.2% in 2012 to 78.3% in 2019 is visible, strongly driven by women who saw their figures increase by 3.2 percentage points.

More information on:

Legal context

The working conditions of employees are determined on the basis of legislation and collective agreements. The most important legislation regarding employment relationships in Finland includes the Employment Contracts Act, the Annual Holidays Act and the Working Hours Act. A new Working hours Act entered in force in 2020. Several acts safeguard non-discrimination and diversity at work. These laws apply to all employees working for Finnish employers, regardless of their nationality.

The most important laws governing labour market organisations and collective bargaining include the Collective Agreements Act, which sets the framework for the agreement system as well as the Act on Mediation in Labour Disputes and the Act on the Labour Court designed for settling of disputes in relation to the collective agreements. Labour market legislature is drafted in a tripartite manner, including trade unions and employers’ organisations in the process.

Industrial relations context

Finnish industrial relations are highly centralised: the trade union density was 71% in 2018 (according to the national survey-based Working Life Barometer), and the various trade unions and employers’ organisations cooperate closely in peak-level organisations. he collective bargaining coverage is approximately 89% (Ahtiainen, 2019). The Finnish system of collective bargaining started in 1940 as the labour market organisations recognised each other as negotiating partners while the process of tripartite cooperation started fully in 1968. In addition to employment issues, the Finnish labour market organisations are also key actors in developing other policy areas, such as the pension scheme. With a tradition of consensus, the government usually consults the social partners in detail over any proposed amendments to the laws that affect working life.

Finland has traditionally had a three-tier system, with collective bargaining normally taking place at national, sectoral and local level. This practice, however, is currently in a state of change: following a change in its internal rules in 2015–2016, the peak-level Confederation of Finnish Industries (EK), the principal employers’ organisation, opted out of participating in central level collective bargaining. Thus, the 2016 Competitiveness Pact, a major tripartite labour market agreement entailing a wage freeze for 2017 and a 24-hour extension of annual working time, among other things, may have been the last of the big centralised agreements. The collective bargaining rounds of 2017–2018 were negotiated directly at the sectoral level, without being preceded by a centralised agreement.

The 2019–2020 round of collective bargaining took place at sectoral level. Some sectors concluded agreements before the COVID-19 pandemic hit Finland while in other sectors the negotiating parties had to shift to ICT-based bargaining. Despite the increased economic uncertainty, the bargaining round of 2020 was concluded successfully. One of the contributing factors has been the close cooperation of the peak-level social partners. In March 2020, the partners made a joint proposal to the Government (Akava, 2020). Several measures included to this proposal were implemented and they have added flexibility on the labour market during the first year of the COVID-19 crisis.

In addition to the formally negotiated collective agreements, the social partners engage in mutual working life discussions during the agreement period through the so-called ‘continuous negotiation system’. This practice has grown increasingly common during the last decade.

Actors and institutions

Actors and institutions

Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Finland.

Public authorities involved in regulating working life

The Ministry of Economic Affairs and Employment is responsible for securing the functioning of the labour market by creating a favourable environment for industrial activities and employment. It drafts and monitors labour legislation. The Ministry of Social Affairs and Health is responsible for the legislation on occupational safety and health as well as equality issues. The Regional State Administrative Agencies' divisions of occupational safety and health are responsible for regional supervision of occupational safety.

The National Conciliator’s Office assists the social partners in disputes concerning collective agreements, facilitating mutual agreements, while the Labour Court deals with cases between employers’ and employees’ organisations related to alleged violations of collective agreements and can order compensatory fines. Legal cases concerning employment legislature which are not related to the collective bargaining agreements are settled by general courts. The Co-Operation Ombudsman monitors compliance with laws related to personnel representation, such as the Act on Cooperation within Undertakings.

Representativeness

There are no statutory regulations regarding representativeness, except for the central principles of collective bargaining in the Collective Agreements Act. The Act sets out the principles as follows:

A collective agreement within the meaning of this Act is any agreement concluded by one or more employers or registered associations of employers and one or more registered associations of employees, concerning the conditions to be complied with in contracts of employment or in employment generally. For the purposes of this Act, ‘association of employers’ means any association whose specific objectives include that of safeguarding the employers’ interest in the matter of employment; and ‘association of employees’ means any association whose specific objectives include that of safeguarding the employees’ interests in the matter of employment.

More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.

Trade unions

About trade union representation

According to the Employment Contracts Act, all workers, regardless of the sector they are employed in, have the right to join trade unions. The membership in trade unions in Finland is high, the trade union density has remained around 70% during the last ten years. Explanatory factors for the popularity of trade unions include their involvement in pensions and unemployment schemes which make them a provider of individual security, even though other institutions providing similar services exist, and they are becoming increasingly popular. The Finnish history of trade union prominence in working life and politics may also be a reason for the normalisation of membership in trade unions.

Trade union membership and trade union density

 

2015

2016

2017

2018

2019

Source

Trade union density in terms of active employees

67.5

65.7%

62.9%

60%

58.8%

OECD/AIAS ICTWSS Database 2021

Trade union density in terms of active employees

74%

73%

71%

70%

67%

Ministry of Economic Affairs and Employment (2019). Working Life Barometer

Trade union membership in 1000s

1,412

1,382

1,350

1,322

1,306

OECD/AIAS ICTWSS Database 2021

Main trade union confederations and federations

The three peak-level trade union confederations are the Central Organisation of Finnish Trade Unions SAK; the Finnish Confederation of Professionals STTK and the Confederation of Unions for Professional and Managerial Staff in Finland (Akava). SAK represents mostly blue-collar occupations, while STTK represents officials and clerks (mostly white-collar workers) and Akava is the trade union confederation for those with university, professional or other high-level education.

Main trade union confederations and federations

Long name

Abbreviation

Members

Involved in collective bargaining?

The Central Organisation of Finnish Trade Unions

SAK

861,371

(2021)

Yes

The Finnish Confederation of Professionals

STTK

505,000

(2017)

Yes

The Confederation of Unions for Professional and Managerial Staff in Finland

Akava

609,000

(2019)

Yes

In 2014, the two biggest peak-level trade unions, SAK (the Central Organisation of Finnish Trade Unions) and STTK (the Finnish Confederation of Professionals), started a process towards a merger that was planned to take place in 2016. This merger aimed to increase the centralisation and potential bargaining power of the employees’ organisations. However, the project was abandoned in June 2016 after several STTK member unions and some SAK member unions decided to withdraw from it.

STTK has in recent years lost member unions to Akava. In 2016, the Finnish Police Federation, with around 11,000 members, switched from STTK to Akava, and in 2017 another three public sector unions with a total member count of 5,700 did the same.

Employers’ organisations

About employers’ representation

All employers have the right of association, and the membership in employers’ associations is voluntary in the private sector. The employers’ organisation density has been stable during the 2000s, and was around 65% in 2013. There is a marked trend of organisations merging, and this is expected to continue. The comparably high density is likely related to the power that labour organisations have in the collective agreements.

Employers’ organisations – membership and density

 

2015

2016

2017

2018

2019

Source

Employers’ organisation density in terms of active employees

n.a.

n.a

70.4

69%

n.a

OECD/AIAS ICTWSS Database 2021
 

n.a.

n.a.

65.2

n.a.

  

Ahtiainen (2019

Employers’ organisation density in private sector establishments*

n.a

n.a.

  

n.a.

63

European Company Survey (ECS) 2019

*Percentage of employees working in an establishment which is a member of any employer organisation that is involved in collective bargaining.

*Percentage of employees working in an establishment which is member of any employer organisation that is involved in collective bargaining.

The report of the Ministry of Economic Affairs and Employment, ‘Coverage of collective agreements in 2017/2018’ (Ahtiainen, 2019), is a relevant national source. According to the report, organisation density was 62.6% in 2014 and 65.2% in 2017.

Main employers’ organisations

The Confederation of Finnish Industries (EK) is the leading business organisation and represents the entire private sector and companies of all sizes. EK has in recent years lost two notable member organisations: the Finnish Forest Industries Federation (Metsäteollisuus) left in 2016, claiming to need better – targeted interest promotion, and the Employers’ Federation of Road Transport (ALT) exited in 2017, because EK no longer participated in collective bargaining. ALT has approximately 700 member companies with 24,000 employees, and Metsäteollisuus has 70 member companies with 42,000 employees.

Local government employers (KT) is an interest organisation for local government employers representing all Finnish local and joint authorities. It negotiates and concludes collective agreements for municipalities and federations of municipalities employing 422,000 (2019) people.

The State Employer’s Office (VTML) negotiates and concludes collective agreements for the 75,000 (2019) employees working for the state.

The Church Employers (KiT) represents the Lutheran Church of Finland as an employer and negotiated a collective agreement for about 15,200 employees working for the parishes in 2020.

The Federation of Finnish Enterprises (SY) has the largest membership of all business-related federations in Finland. The membership consists of more than 115,000 enterprises of all sizes (although half of the members are solo-entrepreneurs), from all over the country, and encompasses the entire business spectrum. SY was founded in 1996. It is not a negotiating party in collective bargaining.

Main employers’ organisations and confederations

Long name

Abbreviation

Members

Year

Involved in collective bargaining

Confederation of Finnish Industries

EK

15,300 companies, employing some 900,000 people.

2019

No*

Local Government Employers

KT

All local and joint government employers, employing 422,000 people.

2019

Yes

State Employer’s Office

VTML

State employers, employing 75,000 people.

2019

Yes

Church Employers

KiT

The Evangelical Lutheran Church of Finland as an employer, employing 15,200 people.

2020

Yes

The Federation of Finnish Enterprises

SY

105,000 member companies, employing 650,000 people.

201

No

*Following EK’s change of rules, centralised agreements should no longer occur, and in 2017 – 2018 no centralised agreement was signed. However, traditionally the central organisations are deeply involved in collective bargaining, and also did in 2017 – 2018 and 2019 – 2020 support and coordinate their member unions in the sectoral negotiations.

Tripartite and bipartite bodies and concentration

Due to a strong tradition of tripartite cooperation, there are various bipartite and especially tripartite working groups in Finland. While some are of a more permanent nature, others are established ad hoc, by the government or based on the national level agreements, to investigate a certain issue. The most important ones are the national level tripartite bodies listed below, although smaller discussion groups and regional tripartite forums also exist. The national working groups are highly influential as they participate in policy-making in various areas in co-operation with the government or other public actors. These include issues connected to collective bargaining, such as wage and cost developments, in which the government aims for contracts that suit the overall situation of the economy. Other important issues include competitiveness and employment, as well as unemployment and pension schemes. For permanent bodies, there are often fixed consultation mechanisms, while ad hoc groups’ processes vary on a case-by-case basis.

In addition to political negotiations, the tripartite and bipartite bodies are discussion forums for developing Finnish working life and enhancing international competitiveness.

Main tripartite and bipartite bodies

Name

Type

Level

Issues covered

Information Committee on Cost and Income Developments (TUKUSETO)

Tripartite

National

Cost and income developments and how they relate to collective agreements.

Economic Council of Finland

Tripartite

National

Facilitating co-operation between the Government, the Bank of Finland and major interest groups. Economic and social issues of key importance to Finland’s prosperity.

Centre for Occupational Safety

Occupational Safety Sector Groups and Committees

Tripartite

Sectoral

Sector groups and Occupational Safety Committees plan training courses and carry out campaigns related to occupational safety.

National Education and Training Committees

Tripartite

Sectoral

The nine sectoral committees monitor, evaluate and anticipate the development of education and training and working life skills needs and make proposals on related initiatives.

Workplace-level employee representation

Finland has a high rate of workplace-based employee representation, with the incidence of different sorts of employee representation at about 60% of establishments (ECS). Employee representation is essentially characterised by single-channel representation based on shop stewards ( luottamusmies), who are affiliated with trade unions and whose position is regulated by sectoral collective agreement. Shop stewards are generally affiliated with the Central Organisation of Finnish Trade Unions SAK and the Finnish Confederation of Professionals STTK. The Confederation of Unions for Professional and Managerial Staff in Finland (Akava) often has a lighter employees’ representation structure at the workplace level, such as contact persons (yhdyshenkilö, yhteyshenkilö). Shop stewards are the leading partners for information and consultation procedures, as well as for collective bargaining at establishment level. Collective agreements provide for shop stewards to be present at workplaces in all branches of the economy. The election of the shop steward and the terms of office are regulated by internal statutes of the unions.

At workplaces where there is no trade union shop steward, or for a specific personnel group that has no trade union shop steward, a shop steward without a trade union affiliation (luottamusvaltuutettu) may be elected instead. The position of such shop stewards is regulated by law, and their tasks are similar to trade union affiliated shop stewards.

Where neither type of shop steward has been elected, the employees may elect a cooperation representative (yhteistoimintaedustaja) to represent them in negotiations and activities with the employer regarding work, working conditions and the position of the employees at the workplace. In employer-employee cooperation negotiations and activities that involve more than one personnel group, the employer and the employees may agree to establish a works council ( yhteistoimintaneuvottelukunta) with representatives of all parties to facilitate the negotiations. The positions of cooperation representatives and works councils is laid down in legislation. The Act on Co-operation in Undertakings defines subjects for information and consultation of employee representatives, including issues such as the economic situation of the company and the outlook for production and employment, statistics on pay for different categories of employees, and consultation on changes in the organisation of work and cases of restructuring.

An employee occupational safety and health representative ( työsuojeluvaltuutettu) monitor matters of occupational safety and health at workplaces with 10 or more employees. At workplaces with 20 or more employees, there must also be an occupational safety and health committee (työsuojelutoimikunta), where both employer and employee representatives, including the elected occupational safety and health representative, are involved.

In private companies with 150 employees or more, employees have the right to be represented in the company’s relevant governing bodies ( henkilöstön edustaja).

Trade union delegations (ammattiosasto) are municipality or workplace level branches of trade unions affiliated with SAK and STTK, providing information, support, training and recreational activities for their members. Akava’s counterpart of trade union delegations, at big workplaces, is company unions (yritysyhdistys).

Regulation, composition and competences of the representative bodies

 

Regulation

Composition

Competences of the body

Thresholds / rules

Trade union shop steward

Luottamusmies

Act on Co-operation within Undertakings; collective agreements

Trade union representative(s) elected by trade union members

Company-level collective bargaining, information, consultation and legal advice to employees

No threshold

Shop steward (not affiliated to trade union)

Luottamusvaltuutettu

Act on Co-operation within Undertakings; Employment Contracts Act

Employee representative elected by employees

Information, consultation and legal advice to employees

No threshold

Cooperation representative / Works council

Yhteistoimintaedustaja / Yhteistoimintaneuvottelukunta

Act on Co-operation within Undertakings

Employee representative(s) elected by employees

Information and consultation

Required in companies with 20 employees or more, and to public sector actors of all sizes (when no shop stewards have been elected)

Occupational safety and health representative/committee

Työsuojeluvaltuutettu / työsuojelutoimikunta

Act on Occupational Safety and Health Enforcement and Cooperation on Occupational Safety and Health at Workplaces

Employee of the establishment, chosen by election

Cooperation on occupational safety and health with employer and authorities, promoting occupational safety and health

Representative mandatory in establishments with 10 or more employees. Committee mandatory in establishments with 20 or more employees.

Employee representative

Henkilöstön edustaja

Act on Personnel Representation in the Administration of Undertakings

To be agreed by employer and employees, or appointed by employees

Representation in company board with same rights as other board members, exceptions apply

Required in companies with 150 staff or more in Finland

Ad hoc forms of employee representation, such as spokespersons or round tables

None

Employees in cooperation with employer representatives

Information and consultation

None

Collective bargaining

Collective bargaining

The central concern of employment relations is the collective governance of work and employment. This section looks into collective bargaining in Finland.

Bargaining system

Collective bargaining in Finland has usually taken place at three levels; national, industry and company. As part of a tripartite tradition, the peak-level social partners in dialogue with the government have negotiated national framework agreements on wages and employment conditions. The national central level agreements have then been the basis for bargaining followed at sectoral level – the predominant level in the sense that sectoral agreements are the legally enforceable basis of employment contracts. Sectoral agreements may transfer some issues to be negotiated locally, in company-level agreements. In recent years there has been a tendency towards more local bargaining, although the decentralisation is taking place within the limits predefined by national and sectoral bargaining. (Asplund, 2007; Sippola, 2012). As the main peak-level employer organisation, the Confederation of Finnish Industries (EK), withdrew from central level bargaining in 2016, decentralisation will probably increase in the future. The collective bargaining rounds of 2017-18 and 2019-20 were thus carried out directly at sectoral level, without a preceding central-level agreement.

Wage bargaining coverage

The Finnish collective bargaining system is characterised by a principle of general applicability, which has been in force since the 1970s. According to this principle, employers that are not involved in collective bargaining or are not signatories to a collective agreement must comply with the nation-wide sectoral level collective agreement considered representative in their sector. In 2001, the so-called confirmation procedure for universally binding collective agreements came into force. A special commission under the Ministry of Social Affairs and Health confirms the general applicability of the agreements. A sector-level agreement is generally applicable if it can be considered representative of the field in question. The employer side has in recent years been promoting the dilution of general applicability.

Due to general applicability, the level of collective wage bargaining coverage is substantially high, the coverage rate of all levels being around 89%, according to the latest available data (Ahtiainen, 2019).

Collective wage bargaining coverage of employees from different sources

Level

% (year)

source

All levels

88.8 (2017)

2021 – OECD/AIAS ICTWSS Database 2021
 

89 (2013)

2013 – ECS

All levels

90 (2019)

2019 – ECS

All levels

99 (2010)

2010 – SES

All levels

99 (2014)

2014 – SES

All levels

99 (2018)

2018 – SES

All levels

89.3 (2015)

Ahtiainen (2016)

All levels

88.8 (2017)

Ahtiainen (2019)*

Sources: Eurofound, European Company Survey 2013/2019 (ECS), private sector companies with establishments >10 employees (NACE B–S) – multiple answers possible; Eurostat, Structure of Earnings Survey (SES), companies >10 employees (NACE B – SxO), single answer for each local unit: more than 50% of employees covered by such an agreement – online dataset codes: [EARN_SES10_01], [EARN_SES14_01], [EARN_SES18_01] (Percentage of employees working in local units where more than 50% of the employees are covered under a collective pay agreement against the total number of employees in the scope of the survey); OECD/AIAS ICTWSS Database 2021; * Ahtiainen 2016/19 – share of employees covered by collective agreements.

Bargaining levels

As the Finnish collective bargaining system is traditionally strongly centralised, the national level has been the most important in setting the framework for changes in wages and working time. However, the withdrawal of the main peak-level employer organisation from central level bargaining in 2016 will presumably affect bargaining levels. Details concerning wages and working time are worked out in lower-level agreements. Sectoral agreements constitute the legally enforceable basis of employment contracts (Asplund, 2007).

One of the measures included in the Government programme of the Sanna Marin Government is to increase local collective bargaining (Finnish Government, 2019). So far, the announcement of the Finnish Forest Industries in 2020 regarding a shift to local level bargaining after the current agreements run out is the most significant indication of the increasing significance of the local level in the Finnish collective bargaining system.

Levels of collective bargaining 2019

 

National level (Intersectoral)

Sectoral level

Company level

 

Wages

Working time

Wages

Working time

Wages

Working time

Principal or dominant level

    

x

x

    

Important but not dominant level

            

Existing level

x

x

    

x

x

Articulation

Traditionally, the national level agreement, after having been approved by a sufficient number of sectoral organisations, sets the minimum conditions for pay changes and working time. These guidelines must then be followed in the sectoral agreements. Company level contracts in their turn must be designed according to the sectoral level agreements so that their demands are fulfilled. As of 2017, no national-level agreement is negotiated, and bargaining has been initiated directly at sectoral level.

Timing of the bargaining rounds

The autumn is the busiest time for bargaining for new collective agreements in Finland. This is because the turn of the year (at the end or beginning of the year) is a typical time for the start of new collective agreements. Traditionally, the bargaining round starts with the collective agreement for the technology sector (including metalworking) which to some extent serves as a pace-setting agreement for other sectors. The collective agreements negotiated within the framework of the tripartite Competitiveness Pact in 2016 were set for only one year, instead of the previously more usual two or three years. In the negotiations of 2017–2018 and 2019-2020, two or three years seems once again to be the standard.

Coordination

When it comes to the trade unions, the collective bargaining system is coordinated both across different bargaining levels and horizontally: the actors within the same sector communicate between the company-level, sectoral and central organisations to promote their industry-related interests. Horizontal coordination is also significant: the cooperation between different sectors is strong in the highly centralised national-level organisations. However, in the collective bargaining round of 2017-2018, cross-sectoral coordination has been more challenging, since no central-level agreement was negotiated prior to the sectoral negotiations.

Although the employers are represented by different interest organisations, their collective bargaining action has hitherto been substantially coordinated by the Confederation of Finnish Industries (EK). However, along with EK stepping away from central level bargaining as of 2016, they no longer have such a strong coordinative role but act more as a platform and provide support for the member organisations.

Extension mechanisms

According to the principle of general applicability, which has been in force since the 1970s, sectoral level collective agreements are generally binding and thus apply also to unorganised employers and employees in the sector. In 2001, the so-called confirmation procedure for universally binding collective agreements came into force. A special commission under the Ministry of Social Affairs and Health confirms the general applicability of the agreements. A sector-level agreement is generally applicable if it can be considered representative of the field in question. Representativeness in this regard entails that an estimated more than half of the employees in the sector work for employers who are signatories of the agreement.

Derogation mechanisms

Overall derogation from collective agreements is not possible. However, it is not uncommon for sectoral level agreements to include opening clauses for agreeing on certain matters such as working time arrangements or wages at local level, usually within given limits.

Expiry of collective agreements

When collective agreements expire without new agreements being in place, the regulations of the old contract are observed until a new agreement is negotiated. According to the Employment Contracts Act, strikes are legal solely in this situation when the agreement period has elapsed.

Peace clauses

According to the Employment Contracts Act and the Act on Mediation in Labour Disputes, industrial action is only allowed when a collective agreement has expired, and a new agreement is yet to be established, or when the reason for the action is something unrelated to the employment conditions, as is the case for political strikes and solidarity actions. The peace clause in a collective agreement may also be unconditional, in which case also solidarity actions are prohibited. Peace clauses apply to trade unions, employers’ organisations and members of employers’ organisations. Peace clauses do not formally apply to individual employees or trade union members, but non-compliance of individual trade union members may have repercussions for the union.

An active and a passive peace obligation can be distinguished. The passive peace obligation prohibits trade unions and employers’ organisations from taking up industrial action, while the active peace obligation compels the organisations to monitor the peace and to take measures to prevent and halt illegal industrial action.

Peace clauses do not apply in cases where the employer is bound by the collective agreement through general applicability of the agreement, without being a member of a signatory employers’ organisation.

Other aspects of working life addressed in collective agreements

The Finnish collective bargaining agenda includes a wide set of issues connected to working life. In the latest central level agreement, the Competitiveness Pact, the peak-level organisations agreed to promote the following provisions in the sectoral level negotiations of their members:

  • the transfer of part of the liability for social security contributions from employers to employees;
  • a 30% cutback in holiday bonuses of public sector workers for the period 2017–2019;
  • greater employer responsibility for dismissed employees, including providing access to occupational health care for a period of up to six months after the dismissal;
  • greater local bargaining opportunities.

Industrial action and disputes

Industrial action and disputes

Legal aspects

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 only allowed when an employment contract 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 health care, whose functioning is vital to the safety of the society. A strike must also be announced to the national conciliator in advance to be legal. The legal types of industrial actions, therefore, include the strikes taking place during a period when no agreement is in force and strikes for political and sympathy 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).

Industrial action developments 2015–2019

 

2015

2016

2017

2018

2019

Working days lost per 1000 employees

n.a.

n.a.

n.a.

n.a

n.a

Number of strikes

163

69

103

166

107

Number of participants

134,427

7,287

17,377

282,096

161,289

Source: Official Statistics of Finland (OSF): Statistics on labour disputes [e-publication]. Helsinki: Statistics Finland.

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

Dispute resolution mechanisms

Collective dispute resolution mechanisms

The mediation system is based on Finland’s Act on Mediation in Labour Disputes. The National Conciliator and the Conciliators assist the negotiating partners if a collective agreement cannot be reached without outside help. 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 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.

Individual dispute resolution mechanisms

Individual labour disputes arising out of individual employment contracts concluded between a single employer and a single employee or out of the legislation regarding employment relationships – and indeed any labour dispute not falling within the scope of the Labour Court or Civil Service Committee – 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 in the Supreme Court ( korkein oikeus). The individual employment disputes 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

Use of dispute resolution mechanisms: Labour disputes mediated by the National Conciliator

 

2015

2016

2017

2018

2019

Settled without work stoppage

2

1

8

14

5

Settled after work stoppage

5

0

5

6

11

Mediated labour disputes in total

8

1

17

20

16

Source: National Conciliator’s Office (2019)

Individual employment relations

Individual employment relations

Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Finland.

Start and termination of the employment relationship

Requirements regarding an employment contract

The minimum working age in Finland is 15, although 14-year-olds can be employed with special provisions that take into account their education. The employment of minors also includes other restrictions on matters such as dangerous work. Non-EU citizens normally need a work-based residence permit to start working in Finland. Exceptions to this would be work of short duration within certain occupations, asylum seekers, etc.

An employment contract must be issued whenever a paid employment relationship begins. Such a contract can be either oral or written. The provisions regarding employment are laid down in the Employment Contracts Act.

Dismissal and termination procedures

Fixed-term contracts are ended without notice at the end of the pre-specified employment period. Indefinitely valid employment relationships end either by mutual agreement between the employer and the employee or by a unilateral act of termination (giving notice). If the employer terminates the contract, this must be based on weighty grounds, meaning serious transgressions on the employee’s side or a change in circumstances that makes the employee unable to cope with his or her duties. Financial or production-related reasons are also acceptable. The employee does not need a specific reason to terminate the contract. Both sides must respect the notice period at the termination of the contract, the length of which is related to the length of the employment period. Employees whose contract has been terminated due to financial reasons are also entitled to a period of paid re-employment leave. The views of both parties must be heard in the process of terminating the employment contract, and the employer must explain the possible financial reasons for the termination.

See also further information on unemployment benefit provisions in Finland.

Entitlements and obligations

Parental, maternity and paternity leave

The parental, maternity and paternity leave policies in Finland are generous, although the duration of the leave is not among the longest in Europe. Although most fathers use at least part of the paternal leave days they are entitled to, women still avail of the vast majority of the non-earmarked parental leave. According to the latest figures the uptake of parental leave among fathers has been increasing during the 2000s but is still well below the uptake of mothers. In 2017, fathers’ share of the total uptake of parental leave was 10% (Kela, 2018).

In the spring of 2021, the Government presented a new model for family leave arrangements. If passed, the length of earnings-based leave will increase from approximately 11.5 months to 14 months. The model consists of a month long leave for the parent that is pregnant and 6.6-month leave for each parent. Families can choose to transfer 69 days from one parent to another (Ministry of Social Affairs and Health, 2021).

Statutory leave arrangements

Maternity leave

Maximum duration

105 working days divided into prenatal leave of 30–50 working days and post-natal leave of 55–75 working days according to the mother’s decision.

Reimbursement

Minimum €29.05 per working day as of 2021, maximum 90% of labour income for the first 56 days, after that maximum 70%.

Who pays?

The Social Insurance Institution of Finland (Kela) or the employer, in which case Kela pays the reimbursement to the employer.

Legal basis

Employment Contracts Act

Parental leave

Maximum duration

158 working days after the maternal leave has ended, to be taken by either the mother or father or divided between them.

Reimbursement

Minimum €29.05 per working day as of 2021, maximum 70% of labour income.

Who pays?

The Social Insurance Institution of Finland (Kela) or the employer, in which case Kela pays the reimbursement to the employer.

Legal basis

Employment Contracts Act

Paternity leave

Maximum duration

54 working days of which 18 working days can be used at the same time as the maternity leave.

Reimbursement

Minimum €29.05 per working day as of 2021, maximum 70% of labour income.

Who pays?

The Social Insurance Institution of Finland (Kela) or the employer, in which case Kela pays the reimbursement to the employer.

Legal basis

Employment Contracts Act

Sick leave

The Employment Contracts Act provides the legislation related to sick leave. The sick leave allowance is paid by the Social Insurance Institution of Finland (Kela). The reimbursement rate depends on the income level so that the minimum amount paid is €29.05 per working day and the maximum 70% of salary, as of 2021. The maximum duration of sick allowance is 300 working days, after which disability pension is considered if necessary. Rehabilitation programmes are also offered in cases of long-term illness. The employer has the right to terminate the employment contract only if the condition of the worker makes him or her permanently disabled for the work and no other suitable work can be offered.

Retirement age

According to the National Pensions Act, the general retirement age is 65 years, and early retirement can be granted from the age of 63. In the case of early retirement, the amount of pension will be reduced. Recipients of extended unemployment allowance are able to apply for old-age pension at the age of 62. According to the pension reform agreed upon by the central labour market organisations in 2014 and entering into force in 2017, the earliest eligibility age for old-age pension will be raised gradually to 65 years by 2025. After 2025, the retirement age will be tied to life expectancy.

Pay

Pay

Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Finland and guides the reader to further material on collective wage bargaining.

Wage setting in Finland has traditionally been agreed through the three-tier system, where the central-level organisations have agreed on the general framework for raises, along with general provisions regarding working hours, conditions and relevant social policy measures. The centralised agreement has been followed by sectoral collective bargaining within the set centralised framework, and finally by workplace-level negotiations within the centralised and sectoral frameworks. However, this bargaining structure is currently changing as the Confederation of Finnish Industries (EK) will no longer participate in centralised bargaining, as a consequence of a change in the organisation’s internal rules in 2015–2016.

Pay development in Finland has been very moderate in the past five years. Collectively bargained pay solutions were low during the first half of 2010s, and the tripartite Competitiveness Pact of 2016 froze 2017 wages completely in most sectors. The increase in real earnings has been small due to inflation, while the unemployment rate was high for many years. In the bargaining rounds of 2017–2018, and 2019–2020 the average raise was settled at approximately 3% in the coming two years.

Average monthly basic wages and salaries per worker, annual average

 

2012

2019

Total

Men

Women

Total

Men

Women

Average monthly earnings, €

3,184

3,483

2,893

3,532

3,838

3,229

Source: Official Statistics of Finland (2019): Index of wage and salary earnings [e-publication].

Minimum wages

Finland does not have a statutory minimum wage, but de facto minimum wages are determined separately for each sector in generally applicable collective agreements. The principle of general applicability of collective agreements ensures that also employers that are unorganised in terms of collective bargaining must comply with the nation-wide agreements that concern their field of economic activity.

For more information regarding the level and development of minimum wages, please see:

Collectively agreed pay outcomes

For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:

Working time

Working time

Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Finland.

Working time regulation

Working time is primarily regulated by the The Working Hours Act and the Annual Holidays Act.

The Young Workers' Act includes special provisions on working times of underage workers.

Detailed frameworks for working times in each sector are determined in collective agreements through sectoral bargaining between the social partners. The specifics of the working times in individual employment contracts are then negotiated at company level according to the regulations of the collective agreements.

For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:

Overtime regulation

The Working Hours Act regulates overtime working and how it should be compensated. According to the Act, an average 48 hours per week over a period of four months is the maximum working time of an employee, including overtime.

According to the Act, in case of daily overtime (working time that exceeds eight hours per day), the two first overtime hours of a working day must be compensated with the regular wage plus 50% and the additional hours with regular wage plus 100%. In case of weekly overtime (more than 40 hours per week), the compensation is pay plus 50%. Sector-specific provisions can be negotiated provided that they fulfil the conditions set by the law and these must be followed in the company level.

Part-time work

Part-time work is defined as work in which the employee’s working time is less than the sectorally determined regular working hours of a worker in a regular employment contract. Part-time work is regulated by the Working Hours Act and the Employment Contracts Act.

Looking at the statistics in the Labour Force Survey by Eurostat, the prevalence of part-time work in Finland in 2019, at 13.8%, has been lower than the levels for the EU average in the same year, 17.8%. A large proportion of part-time employees are students and older workers.

Part-time work is relatively uncommon in Finland, as full-time employment has traditionally been the standard in the country. Women’s full-time work, in particular, has been more widespread than in many other countries in Europe, due to policies such as free school lunches and subsidised daycare for children. However, the uneven distribution of care responsibilities is nevertheless the main reason for women working part-time more often than men. In addition, part-time work has been more common in female-dominated sectors such as retail trade.

Persons employed part-time in Finland and EU27 (% of total employment)

 

2015

2016

2017

2018

2019

2020

Total (EU27)

18.2

18.1

18

17.8

17.8

16.6

Total (Finland)

12.7

13.4

13.5

13.6

13.8

13.4

Women (EU27)

30.2

30

29.8

29.5

29.4

27.6

Women (Finland)

17

18.4

18.6

18.8

19.2

17.9

Men (EU27)

8

7.9

7.9

7.7

7.8

7.2

Men (Finland)

8.6

8.9

8.7

8.8

8.8

9.1

Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20 to 64 years of age) – total and by sex.

Involuntary part-time

Involuntary part-time workers can be defined as those working part-time because they could not find a full-time job.

Persons employed in involuntary part time in Finland and EU27 (% of total part-time employment)

 

2015

2016

2017

2018

2019

2020

Total (EU27)

32.3

31

29.7

28

26.5

25

Total (Finland)

33.5

36.8

34.2

34.7

33.1

34.7

Women (EU27)

28.8

27.7

26.4

25.2

23.9

22.5

Women (Finland)

34.7

37.3

34.2

34

33.7

33.2

Men (EU27)

43.6

41.8

40.4

37.2

34.9

33.1

Men (Finland)

31.1

35.9

34.3

36.1

31.7

37.6

Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20 to 64 years of age)

Involuntary part-time work has increased significantly in Finland since 2013. The increase seems to have concerned above all the service sector and is influenced by developments such as the gradual dismantling of regulations on opening hours in the retail and beauty sectors. Restrictions on opening hours were eliminated altogether in January 2016.

Night work

The Working Hours Act defines night work as ‘work carried out between 23.00 and 06.00’. A night shift is a work shift whereby at least three hours take place between these hours.

Shift work

Shift work has not been defined in legislation. It is nevertheless regulated in the Working Hours Act: shifts in shift work ‘must change regularly and at intervals agreed upon in advance. Change is considered regular when a shift does not coincide for more than an hour with the immediately following shift or the shifts are no more than an hour apart’. Special permits to diverge from these directives may be granted by the Office of the Regional State Administrative Agency.

Weekend work

There is no legal definition of weekend work. According to the Working Hours Act, employees must normally have at least 35 hours of uninterrupted free time per week, and these hours should preferably be arranged around a Sunday. Work on Sundays or church holidays can occur when it has been agreed in the employment contract or with the employee’s consent. No consent is required ‘if the nature of work is such that it is regularly performed on these days’. Sunday wages are twice the regular wage. There are no special provisions for Saturday work.

Rest and breaks

There is no explicit legal definition for rest periods, but it can be derived from the definition of ‘working hours’ in the Working Hours Act. Accordingly, rest periods can be defined as time not spent on work and when the employee is not required to be present at the workplace at the employer’s disposal. Rest periods include travel time unless the travel time constitutes work performance. Stand-by time during which the employee has agreed to stay at home or to be otherwise available for being called to work also qualifies as rest, but it must not ‘excessively disrupt’ the employee’s free time and must be reasonably reimbursed. There are also more detailed provisions concerning the length and frequency of breaks and rest periods.

Working time flexibility

Working time flexibility is primarily regulated by the Working Hours Act which has to be followed when specifying sectoral conditions in collective agreements. The sectoral agreements must then be taken into consideration in company-level contracts in addition to national legislation. Flexible working times have to be specified by mutual agreement in the employment contract so that the daily regular working hours can only be extended or reduced by a maximum of four hours. According to the Act, ‘weekly regular working time may average no more than 40 hours over a reference period of four months.’

According to EWCS statistics, less than half of the Finnish employed work the same number of hours every day. This is clearly below the EU28 average, although the proportion of those working the same number of days per week is above the EU28 average. The opportunity to bank whole days is more than twice as common in Finland (women 15.4%, men 16.6%) as the EU average. The opportunity to bank hours is also slightly more common in Finland (women 7.6%, men 6.6%) than in the EU on average. The table below is in line with these findings, as it shows that over 56% of Finnish workers have the possibility of adapting their working hours.

Health and well-being

Health and well-being

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill health of their workers. This section looks into psychosocial risks and health and safety in Finland.

Health and safety at work

The Occupational Safety and Health Act and the Occupational Health Care Act require the employer to protect the employees’ safety and health and provide the health care and expert services needed for this. Compliance with the law is overseen by the Department for Occupational Safety and Health of the Ministry of Social Affairs and Health and the district administration for occupational safety and health.

Accidents at work, with four days’ absence or more – working days lost

According to data by Eurostat, the number of accidents at work has remained stable at around 30,000 since 2015, reaching 30,406 in 2019.

 

2015

2016

2017

2018

2019

All accidents

30,871

30,129

30,964

30,406

n.a

Percent change on previous year

-6.8

-2.4

2.7

-1.8

n.a

Per 1,000 employees

14.8

14.3

14.6

14

n.a

Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]

National data on accidents at work differ somewhat from Eurostat data, showing slightly more elevated figures. National data also indicate that accidents at work affect men more commonly than women, which is explained by the fact that men work on average in more risky sectors than women, such as the building and construction sector.

Number of wage and salary earners’ accidents at work, with four days’ absence or more – national statistics

 

2015

2016

2017

2018

2019

Total

36,020

35,233

36 255

35 587

n.a

Men

23,469

23,015

23 622

23 327

n.a

Women

12,551

12,218

12 633

12 260

n.a

Source: Official Statistics of Finland (OSF): Occupational accident statistics [e-publication]. Helsinki: Statistics Finland

Psychosocial risks

The main regulations concerning psychosocial risks at work is covered by the Occupational Safety and Health Act, which is related to occupational risks to both physical and mental health. The vulnerability of young workers is taken into consideration in the additional regulations provided by the Young Workers’ Act. The Non-Discrimination Act prohibits discrimination related to all aspects of working life and the Working Hours Act protects workers against excessive amounts of work. The Act on Occupational Safety and Health Enforcement and Cooperation on Occupational Safety and Health at Workplaces regulates the conduct of the occupational safety and health authorities.

For more detailed information on health and well-being at work, please consult:

Skills, learning and employability

Skills, learning and employability

Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Finnish system for ensuring skills and employability and looks into the extent of training.

National system for ensuring skills and employability

Skills identification, development, validation and recognition are conducted by both public institutions and labour market organisations. At the national level, the tripartite National Education and Training Committees monitor and anticipate skills needs in different sectors and contribute to the design of education and training in upper secondary vocational education and training (VET) and higher education. The committees consist of representatives of relevant sectoral trade unions and employers’ organisations, of teachers and educational institutions, and the Finnish National Agency for Education. Equally, the social partners have representatives in VET degree committees, through which adult learners can get their professional skills formally validated. In recent years, the social partners have furthermore been deeply involved in preparations for the comprehensive VET reform, which was enforced in January 2018.

The Public employment and business services (TE Services) organise vocational labour market training to enhance the skills and employability of the unemployed. TE Services also provide personal guidance and information on vacancies and education to jobseekers.
Trade unions provide their own training programmes for both employed and unemployed members as well as activation schemes for ageing workers and the long-term unemployed. Both sectoral unions and central organisations provide different training options. Unions also provide career planning and employment services. Employers’ organisations organise training courses for their member companies on for example legal issues and business management.

Since 2014, employers with 20 people or more may claim the cost of employees’ training as tax deductible. In order to make tax deductions, companies have to create an individual professional development plan.

Training

The Ministry of Economic Affairs and Employment is responsible for designing the policies related to training and skills development, while the Ministry of Culture and Education handles vocational education and training. The Centres for Economic Development, Transport and the Environment (ELY Centres) and the public employment and business services (TE Services) are jointly responsible for regional and local implementation and development tasks. According to the European Company Survey, in 81% of Finnish establishments at least 20% of the employees receive on-the-job training.

Work organisation

Work organisation

Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.

For more detailed information on work organisation, please consult:

For Finland the European Company Survey (ECS) 2013 shows that between 2010 and 2013 53.4% of establishments with 10 or more employees reported changes in the use of technology, 47.9% introduced changes in ways to coordinate and allocate the work to workers and 25.9%% saw changes in their working time arrangements.

Equality and non-discrimination at work

Equality and non-discrimination at work

The principle of equal treatment requires that all people, and in the context of the workplace all workers, have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, sex disability, nationality, race and religion.

The Non-discrimination Act, together with amendments of the Act on Equality between Women and Men, entered into force in 2015. The two acts, complementing each other and together covering all grounds of discrimination, increase the employer's obligation to promote equality and to eliminate discrimination. Among other things, the acts set out new rules on mandatory plans for promoting equality at the workplaces and strengthens the role of shop stewards and other personnel representatives with regard to non-discrimination. According to the new legislation, employers are obliged to investigate and follow up on gender pay gaps at the individual workplaces.
Compliance with anti-discrimination in employment is monitored by the following independent bodies: the Non-Discrimination Ombudsman and the Ombudsman for Equality (both connected to the Ministry of Justice), the National Non-Discrimination and Equality Tribunal, appointed by the Government, and the Regional State Administrative Offices (AVI).

Equal pay and gender pay gap

The gender pay gap was around 20% in Finland in the early years of the 21st century but has decreased slightly since and as of 2017 is approximately 17% (Ministry of Social Affairs and Health, 2017).
The Employment Contracts Act and the Non-Discrimination Act demand equal treatment of workers in all aspects of working life, including wages. The Act on Equality between Women and Men specifically prohibits wage discrimination based on gender. Employers with 30 employees or more are obliged to draft equality plans and to carry out pay auditing every 2–3 years, in cooperation with employee representatives. The pay audit must comprise and compare data on men’s and women’s wages in ‘comparable’ groups of workers. Collective agreements furthermore set the framework for wages in different occupations which must be observed for all workers.

The Ministry of Social Affairs and Health is responsible for monitoring compliance with the Finnish non-discrimination legislation related to working life. It coordinates the tripartite Equal Pay Programme with the aim of narrowing the gender-based pay gap to 12% by 2025 by means of contract policy, decreasing the gender-based segregation of occupations, development of pay systems and supporting women's career development. In cases of suspected pay discrimination, the employee and the trade union shop steward of the establishment have the right to hear the grounds for the wage level by the employer. The employee can appeal to the general court which can order the employer to pay compensation to the employee. The Ombudsman for Equality and the labour maker organisations can also bring cases to the Finnish Equality Board which can impose fines if necessary.

Quota regulations

The only quota regulation regarding employment is the decree in the Act on Equality between Women and Men that the proportion of both men and women in public administration bodies must be at least 40%. This applies to public authorities at both state and municipal level.

Bibliography

Bibliography

All Eurofound publications can be found at www.eurofound.europa.eu

Ahtiainen, L. (2011), Työehtosopimusten kattavuus Suomessa vuonna 2008 (444 KB PDF), Ministry of Employment and the Economy, Helsinki.

Ahtiainen, L. (2016), Työehtosopimusten kattavuus Suomessa vuonna 2014 , Ministry of Employment and the Economy, Helsinki.

Ahtiainen, L. (2019), Työehtosopimusten kattavuus Suomessa vuonna 2017/2018 , Ministry of Employment and Economic Affairs, Helsinki.

Akava (2019), Akavan jäsenliittojen jäsenmäärät , web page, last accessed 6 February 2019.

Akava (2020), Social partners’ proposals to help businesses in the corona crisis, web page, last accessed 19 February 2020.

Asplund, R. (2007), Finland: Decentralisation Tendencies Within a Collective Wage, Working papers No. 1077, the Research Institute of the Finnish Economy, Helsinki.

Eurofound (2020a), Industrial relations: Developments 2015–2019 , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg

Eurofound (2020b), Minimum Wages in 2020: Annual review , Publications Office of the European Union, Luxembourg.

Eurofound (2020c), Collective agreements and bargaining coverage in the EU: A mapping of types, regulations and first findings from the European Company Survey 2019, working paper, Dublin.

Eurofound (2020d), Employee representation at establishment or company level: A mapping report ahead of the 4th European Company Survey, working paper, Dublin.

Eurofound (2021), Working conditions and sustainable work: An analysis using the job quality framework , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.

Eurofound and Cedefop (2020), European Company Survey 2019: Workplace practices unlocking employee potentia l , European Company Survey 2019 series, Publications Office of the European Union, Luxembourg

Eurostat, Unemployment statistics , webpage, accessed 30 October 2015.

Eurostat, LFS ad-hoc modules: 2019. Work organisation and working time arrangements . Eurostat database.

Eurostat, Part-time employment and temporary contracts – quarterly data [lfsi_pt_q]. Eurostat database

Federation of Finnish Entrepreneurs (n.d) SY (n.d.) Tätä on Suomen yrittäjät , web page, last accessed 19 February 2021.

Kela (2018), Kelan lapsiperhe – etuustilasto 2017. [Kela’s statistics on benefits for families with children]. Helsinki: Kela.

Kela (2021), Lapsiperheet, web page, last accessed 21 February 2021.

Lyly – Yrjänäinen, M. (2018), Työolobarometri 2017 – Ennakkotiedot , Helsinki: Ministry of Economic Affairs and Employment.

Lyly – Yrjänäinen, M. (2019), Työolobarometri 2019 , Ministry of Economic Affairs and Employment, Helsinki.

Ministry of Social Affairs and Health of Finland (2016), Samapalkkaisuus , web page, last accessed 7 December 2016.

Ministry of Social Affairs and Health of Finland (2021), Perhevapaauudistus – Tiedotustilaisuus 16.2.2021 , last accessed 19 February 2021.

National Conciliator’s Office (2018), Statistics and Reports , web page, last accessed 6 February 2019.

OECD (2021), OECD/AIAS ICTWSS Database , version: 17 Feb 2021, Paris

Official Statistics of Finland (2018), Index of wage and salary earnings [e-publication] . Helsinki: Statistics Finland, last accessed 6 February 2019.

Official Statistics of Finland (2020): Occupational accident statistics [e-publication]. Helsinki: Statistics Finland, last accessed 19 February 2021.

Official Statistics of Finland (2020), Statistics on labour disputes [e-publication], Helsinki: Statistics Finland, last accessed 19 February.

SAK (2019), Jäsenmäärät , web page, last accessed 16 January 2019.

Sippola, M. (2012), ’Local bargaining and codetermination: Finnish experience in comparative perspective’, European Journal of Industrial Relations, Vol. 18, No. 1, pp. 53–69

Useful? Interesting? Tell us what you think. Hide comments

Add new comment