1. SAK Today and Tomorrow 1 Introduction to the Labour Law and Industrial Relations in Finland Katja Lehto-Komulainen, Senior Adviser for International Affairs SAK 21.9.2009

2. 20.8.2008/xx SAK Today and Tomorrow 2 The Finnish Industrial Relations  Freedom of association  Freedom of collective bargaining  Important role of collective agreements  High trade union density (70 %) and high collective bargaining coverage (90%)  Bargaining rights of the public sector corresponding to those in the private sector (though different regulations)  SAK, STTK and Akava: three trade union confederations  EK: Confederation of Finnish Industries  KT and VTML: public sector employers´ confederations  Cooperation between workers´ organisations and employers´ organisations and government: tripartism

3. Foreign Companies in Finland  Foreign companies functioning and employing workers in Finland have the same obligations and rights as Finnish companies  They have to apply the Finnish labour law (minimum protection) and Finnish collective agreements 20.8.2008/xx SAK Today and Tomorrow 3

4. Foreign Workers in Finland  From EU/EES-countries: free movement of workers, free movement of services  From third countries (e.g. China): residence permit for an employed person is needed  Foreign workers have the same rights and obligations as Finnish workers no matter whether being employed by a Finnish employer, by a foreign temporary agency (posted worker) or by a foreign subcontractor (posted worker) 20.8.2008/xx SAK Today and Tomorrow 4

5. Some History Facts  The President of SAK participated in the International Labour Conference 1919  Finland is ILO member state since 1920  ”Engagement of January” (23.1.1940)  Finland is European Union member state since 1995 20.8.2008/xx SAK Today and Tomorrow 5

6. The Impact of the European Community Law  Labour legislation has been harmonized  Finnish courts have to take the mandatory European legislation and jurisprudence of the European Court of Justice into account  Finnish labour market organisations (both management and labour) are active participants in the European social dialogue 20.8.2008/xx SAK Today and Tomorrow 6

7. Main Principles of the Finnish Labour Law  The principle of protection: to provide legal protection to the weaker part i.e. worker in an employment relationsship  Legislation regulates mandatory legal minimum for the protection of workers  Neutrality principle by the state  The tripartite principle 20.8.2008/xx SAK Today and Tomorrow 7

8. The Constitution of Finland  Protection of private property (earned pension etc), several social and cultural rights guaranteed  Freedom of expression  Freedom of assembly and freedom of association and collective bargaining including freedom to undertake collective actions  Right to protection against unjustified dismissal 20.8.2008/xx SAK Today and Tomorrow 8

9. Legal Sources of the Labour Law  Employment Contracts Act (2001)  Collective Agreements Act (1946)  Co-operation within Undertakings Act (2007)  Legislation on working time, annual holidays, health and safety, wage guarantee for insolvency cases, inventions of employees, representation of personnel in the administration of undertakings, etc. 20.8.2008/xx SAK Today and Tomorrow 9

10. Collective Labour Relations  A collective agreement -guarantees certain minimum standards for the employment conditions -guarantees industrial peace during the validity of the collective agreement 20.8.2008/xx SAK Today and Tomorrow 10

11. Structure of Collective Bargaining  1. National incomes policy agreements between central labour market organisations (SAK, STTK, Akava, EK, KT, VTML): 25 since 1968  2. Collective agreements negotiated by nationwide workers´ and employers´ industrial federations on each sector and branch -> general applicability of collective agreements  3. Local workplace level: according to the collective agreement in question  4. Individual level (conditions to the employment contract are allowed to be above those of the collective agreement) 20.8.2008/xx SAK Today and Tomorrow 11

12. The Generally Applicable Collective Agreements  A generally applicable collective agreement is mandatory even to an employer who is not member of an employers´ federation: employer must apply all the terms (wage, working time, etc) in the generally applicable collective agreement  A collective agreement can become generally applicable if it is so confirmed (nationwide collective agreement, representative collective agreement) 20.8.2008/xx SAK Today and Tomorrow 12

13. Shop Stewards  Union representatives at the workplace  General agreements between central labour market organisations and collective agreements regulate rights of shop stewards etc  Higher protection against termination of employment:  1) termination grounds related to the employee´s person: only if a majority of the employees whom shop steward represents agree;  2) financial and production-related grounds for termination, reorganisation procedure or bankruptcy of the employer: only if the work of the shop steward ceases completely and the employer is unable to arrange work that corresponds to the person´s professional skill or is otherwise suitable, or to train the person for some other work (Employment Contracts Act). 20.8.2008/xx SAK Today and Tomorrow 13

14. Individual Employment Relationship: Employment Contract, part 1  The collective agreement in question  Agreement between an employer and a worker  To perform personally work under employer´s direction and supervision in return for pay  Written or oral contract  a contract is valid indefinitely unless it has for a justified reason (e.g. traineeship) been made fixed-term  A trial period max four months 20.8.2008/xx SAK Today and Tomorrow 14

15. Individual Employment Relationship: Employment Contract, part 2  The collective agreement in question  Employment Contracts Act stipulates obligations and rights of workers and employers  Temporary lay-offs: if an employment contract may be terminated for economic reasons  Termination of an Employment Contract: not without a proper and weighty reason; the period of notice varies from 14 days to 6 months depending on the lenght of the employment relationsship  Cancellation of an Employment Contract with immediate effects: if it is justified by an especially weighty reason (weightier than for termination above) 20.8.2008/xx SAK Today and Tomorrow 15