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
Living and working in Finland
20 May 2020
- Population: 5.5 million (2019)
- Real GDP growth: 1.7% (2018)
- Unemployment rate: 7.4% (2018)
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 28 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 is the Europe 2020 growth and jobs strategy launched in 2010, which has five headline targets, covering employment through to social inclusion and poverty reduction. The strategy is implemented in the context of the European Semester process – the EU's annual cycle of economic policy guidance and surveillance – which ensures that Member States keep their budgetary and economic policies in line with their EU commitments through, in part, National Reform Programmes. These programmes form the basis for the European Commission's proposals for country-specific recommendations (CSRs) for each Member State.
European Commission: The European Semester
European Commission: The European Semester - EU country-specific recommendations
European Commission: European Semester documents for Finland
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, COVID-19 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 launched an e-survey in early April, Living, working and COVID-19, to capture the immediate economic and social effects of the crisis across the European Union and beyond. The survey investigates the impact on well-being, work and telework and on the financial situation of people living in Europe. The first findings for each country, as well as a range of data pages are now 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:
- Living in Finland - country-level data from the European Quality of Life Survey (EQLS)
- Working life in Finland - key characteristic of working life across a range of parameters.
Research carried out prior to 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
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
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
Maija Lyly-Yrjänäinen Finnish Ministry of Employment and the Economy
Katja Miettinen Confederation of Finnish Industries (EK)
Juha Antila Central Organisation of Finnish Trade Unions (SAK)
Living in Finland
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%.
| 2003 | 2007 | 2011 | 2016 | ||
| Life satisfaction | Mean (1-10) | 8.1 | 8.2 | 8.1 | 8.1 |
| Taking all things together on a scale of 1 to 10, how happy would you say you are? | Mean (1-10) | 8.2 | 8.3 | 8.1 | 8.2 |
| Optimism about own future | Agree & strongly agree | - | - | - | 81% |
| Optimism about children’s or grandchildren’s future | Agree & strongly agree | - | - | - | 86% |
| Take part in sports or physical exercise | At least once a week | - | - | 72% | 79% |
| In general, how is your health? | Very good | - | 18% | 16% | 19% |
| WHO-5 mental wellbeing index | Mean (1-100) | - | 65 | 66 | 67 |
| Making ends meet | With some difficulty, difficulty, and great difficulty | 20% | 19% | 25% | 18% |
| I feel I am free to decide how to live my life | Strongly agree | - | - | 34% | 34% |
| I find it difficult to deal with important problems that come up in my life | Agree & strongly agree | - | - | - | 18% |
| When things go wrong in my life, it generally takes me a long time to get back to normal | Agree & 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.
| 2003 | 2007 | 2011 | 2016 | ||
| (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 |
Total | 42% | 43% | 46% | 50% |
| Men | 46% | 39% | 42% | 40% | |
| Women | 39% | 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 |
Total | 15% | 20% | 17% | 26% |
| Men | 13% | 19% | 14% | 21% | |
| Women | 17% | 20% | 21% | 31% | |
|
I have found it difficult to concentrate at work because of my family responsibilities |
Total | 6% | 7% | 8% | 16% |
| Men | 7% | 7% | 4% | 12% | |
| Women | 5% | 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.
| 2003 | 2007 | 2011 | 2016 | ||
| Social exclusion index | Mean (1-5) | - | 2.0 | 2.0 | 1.8 |
| Trust in people | Mean (1-10) | 7.2 | 7.0 | 7.1 | 7.4 |
| 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 dark | Strongly 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.
| 2003 | 2007 | 2011 | 2016 | ||
| Health services | Mean (1-10) | 7.4 | 7.6 | 7.1 | 7.6 |
| Education system | Mean (1-10) | 8.2 | 8.4 | 8.2 | 8.3 |
| Public transport | Mean (1-10) | 7.6 | 7.3 | 6.8 | 6.9 |
| Childcare services | Mean (1-10) | - | 7.9 | 7.7 | 7.9 |
| Long-term care services | Mean (1-10) | - | - | 6.3 | 6.7 |
| Social housing | Mean (1-10) | - | - | 6.6 | 6.9 |
| State pension system | Mean (1-10) | 7.4 | 7.0 | 6.7 | 7.0 |
Working life in Finland
About
- Author: Rasmus Firon, Maija Kaartinen, Lisa Tönnes Lönnroos and Anna Savolainen
- Institution: Oxford Research
- Published on: Monday, November 18, 2019
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 2019
Highlights – Working life in 2019
Highlights updated on: 28 February 2020
For more information, see working paper:
Finland: Developments in working life 2018
The year 2019 was politically turbulent in Finland, and no major new reforms were implemented. The year was marked by one general election, two government resignations and two government formations. After a narrow election victory, the Social Democratic Party formed a new centre-left government coalition consisting of five parties in June. The government, which was reappointed in mid-December with a new prime minister and a cabinet shuffle following a protracted labour conflict in the postal sector, presented its ambitious goals on job creation in its programme. The starting point for the labour market policy reforms was that reforms would be drafted in a tripartite setting and involve proposals from social partners. However, although employment policy continued to be a key focus for the government, few concrete measures had been introduced by the end of the year. Economic forecasts showed that the economic growth rate was slowing down, with several stakeholders questioning the feasibility of the government’s goal of a 75% employment rate.
The Finnish labour market continued to slowly get stronger in 2019. There were 10,000 more people in employment in November compared to one year earlier and the average employment rate for people aged 15–64 stood at 72.6%. Unemployment reached pre-crisis levels: 6.7% in November, down from 7.1% in 2018. Meanwhile, labour market mismatches continued to be a growing problem and an increasing number of companies reported that recruitment issues were an obstacle to company growth. Demographic projections showed that given the rapidly ageing population, current migration levels and historically low birth rate, the Finnish population will start to decline in 2031.
In terms of number of working days lost, 2018 reached a peak in industrial action activity, according to Statistics Finland and the National Conciliator’s Office. Statistics on the number of industrial action events in 2019 are not available at the time of publication but given the high number of industrial action events due to stalled collective agreement negotiations during the autumn, it is likely that 2019 was also a year of relatively high levels of industrial unrest.
In 2019 there were several tough labour conflicts. Most notable were the protracted collective agreement negotiations in the technology industry sector, which were resolved in early January 2020, and the conflict in the postal sector. The postal conflict arose when national mail company Posti announced that, due to economic strains and structural changes in the sector, it planned to transfer some 700 employees working in sorting to a new collective agreement with lower labour costs, effectively leading to wage cuts for the workers. Trade unions would not accept the pay cuts and initiated a strike wave during the autumn. Following several mediation attempts, a new collective agreement was signed and the collective agreement transfer plans were abolished.
Key figures
Key figures
Comparative figures on working life in Finland
|
2012 |
2018 |
% (point) change 2012-2018 |
||||
|
Finland |
EU28 |
Finland |
EU28 |
Finland |
EU28 |
|
|
GDP per capita |
34,900 |
25,700 |
36,700 |
28,200 |
5.16% |
9.73% |
|
Unemployment rate – total |
7.7 |
10.5 |
7.4 |
6.8 |
-0.30 |
-3.70 |
|
Unemployment rate - women |
7.1 |
10.6 |
7.3 |
7.1 |
0.20 |
-3.50 |
|
Unemployment rate - men |
8.3 |
10.4 |
7.4 |
6.6 |
-0.90 |
-3.80 |
|
Unemployment rate - youth |
19.0 |
23.3 |
17.0 |
15.2 |
-2.00 |
-8.10 |
|
Employment rate – total |
75.2 |
71.7 |
77.9 |
73.7 |
2.70 |
2.00 |
|
Employment rate - women |
73.4 |
65.5 |
76.3 |
68.3 |
2.90 |
2.80 |
|
Employment rate - men |
77.1 |
77.8 |
79.5 |
79.2 |
2.40 |
1.40 |
|
Employment rate - youth |
51.6 |
42.4 |
53.1 |
41.7 |
1.50 |
-0.70 |
Source: Eurostat - Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012-2018 (both based on tsdec100). Unemployment rate by sex and age - annual average, % [une_rt_a]; Employment rate by sex and age - annual average, % [lfsi_emp_a].
Background
Background
Economic and labour market context
Between 2012 and 2018, Finland’s GDP increased by 5.16%, in contrast with the EU average increase of 9.73% for the same period. During this time, unemployment decreased slightly, from 7.7% in 2012 to 7.4% in 2018. Looking at employment figures, an overall increase in the employment rate from 75.2% in 2012 to 77.9% in 2018 is visible, strongly driven by an increase in the female employment rate of 2.9 percentage points.
More information on:
- European Commission: Living and working in Finland
- European Industrial Relations Dictionary: Undeclared work
- Data: Tackling undeclared work in Europe
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 Working Hours Act and the Annual Holidays Act. 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 73% in 2017 (according to the national survey-based Working Life Barometer), and the various trade unions and employers’ organisations cooperate closely in peak-level organisations. The collective bargaining coverage is approximately 89% (Ahtiainen, 2016). 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 round of 2017–2018 was negotiated directly at the sectoral level, without being preceded by a centralised agreement.
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; trade union density has remained around 70% over the last 10 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. 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
|
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
Source |
|
|
Trade union density in terms of active employees |
67.3% |
67.3% |
66.3% |
66.7% |
n.a |
64.6% |
n.a |
OECD and J. Visser, ICTWSS database |
|
Trade union density in terms of active employees |
68% |
75% |
75% |
73% |
76% |
74% |
73% |
Ministry of Economic Affairs and Employment (2018). Working Life Barometer |
|
Trade union membership in thousands |
2,143 |
2,146.1 |
2,126.6 |
2,104.6 |
2,090.4 |
2,104.6 |
N.a. |
OECD and J. Visser, ICTWSS database |
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 |
929,122 (2018) |
Yes |
|
The Finnish Confederation of Professionals |
STTK |
505,000 (2017) |
Yes |
|
The Confederation of Unions for Professional and Managerial Staff in Finland |
Akava |
609,239 (2018) |
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
|
2012 |
2013 |
2014 |
Source |
|
|
Employers’ organisation density in private sector establishments* |
n.a. |
65% |
n.a. |
European Company Survey 2013 |
*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 2014’ (Ahtiainen, 2016), is a relevant national source. The report provides a different calculation of employers’ organisational density, ranging from 73% (2008) and 75% (2014) to 62.6% (2008) and 66.2% (2014). The latter figures are comparable to those reported by the ECS in the above table.
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 419,000 people.
The State Employer’s Office (VTML) negotiates and concludes collective agreements for the 74,000 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 20,000 employees working for the parishes in 2014.
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 |
2018 |
No* |
|
Local Government Employers |
KT |
All local and joint government employers, employing 419,000 people |
2017 |
Yes |
|
State Employer’s Office |
VTML |
State employers, employing 73,000 people |
2017 |
Yes |
|
Church Employers |
KiT |
The Evangelical Lutheran Church of Finland as an employer, employing 19,800 people |
2016 |
Yes |
|
The Federation of Finnish Enterprises |
SY |
105,000 member companies, employing 650,000 people. |
2016 |
No |
Notes: * 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 in 2017–2018 supported and coordinateed 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 |
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 2012–2016
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
|
|
Working days lost per 1000 employees |
6.9 |
10.6 |
17.8 |
n.a. |
n.a. |
n.a. |
|
Number of strikes |
86 |
121 |
128 |
163 |
69 |
103 |
|
Number of participants |
14,984 |
19,567 |
69,248 |
134,427 |
7,287 |
17,377 |
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
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Settled without work stoppage |
4 |
14 |
6 |
2 |
1 |
8 |
14 |
|
Settled after work stoppage |
1 |
5 |
2 |
5 |
0 |
5 |
6 |
|
Mediated labour disputes in total |
5 |
19 |
8 |
8 |
1 |
17 |
20 |
Source: National Conciliator’s Office (2018)
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 increased increasing during the 2000s but is still well below the uptake by mothers. In 2017, fathers’ share of the total uptake of parental leave was 10% (Kela, 2018).
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 €27.86 per working day as of 2019, maximum 90% of labour income for the first 56 days; after that, a maximum of 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 |
|
|
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 €27.86 per working day as of 2019, 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 €27.86 per working day as of 2019, 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 €27.86 per working day and the maximum 70% of salary, as of 2019. 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 can 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 round of 2017–2018, the average raise was settled at approximately 3% in the coming two years.
Average monthly basic wages and salaries per worker, annual average
|
2012 |
2017 |
|||||
|
Total |
Men |
Women |
Total |
Men |
Women |
|
|
Average monthly earnings, € |
3,184 |
3,483 |
2,893 |
3,396 |
3,696 |
3,101 |
Source: Statistics Finland
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:
- Publication: Minimum wages in 2019 – Annual review
- Eurostat: Minimum wage statistics
Collectively agreed pay outcomes
For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:
- Topic: Collective bargaining
- Publication: Developments in collectively agreed pay 2000–2017
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:
- Publication: Working time in 2017–2018 – Review
Overtime regulation
The Working Hours Act regulates overtime working and how it should be compensated, defining overtime as ‘work carried out on the employer's initiative in addition to the regular working hours’ (The Working Hours Act, 2011). The maximum amount of overtime allowed is 138 hours per four months, with the provision that it should not exceed 250 hours per year. The social partners are allowed to make exceptions to these regulations in collective agreements, provided that these exceptional periods do not exceed 12 months and that the annual limit on overtime is observed.
According to the act, 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%. 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 2018, at 13.6%, has been lower than the EU average in the same year – 18.5%. 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. In particular, full-time work undertaken by women has been more prevalent than in many other Member States, due to policies such as free school lunches and subsidised day-care 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 EU28 (% of total employment)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Total (EU28) |
18.6 |
19 |
19 |
19 |
18.9 |
18.7 |
18.5 |
|
Total (Finland) |
12.7 |
12.5 |
12.7 |
12.7 |
13.4 |
13.5 |
13.6 |
|
Women (EU28) |
31.4 |
31.8 |
31.7 |
31.5 |
31.4 |
31.1 |
30.8 |
|
Women (Finland) |
17.6 |
17.6 |
17.5 |
17 |
18.4 |
18.6 |
18.8 |
|
Men (EU28) |
7.7 |
8.1 |
8.2 |
8.2 |
8.2 |
8.1 |
8 |
|
Men (Finland) |
8.1 |
7.8 |
8.1 |
8.6 |
8.9 |
8.7 |
8.8 |
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 EU28 (% of total part-time employment)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Total (EU28) |
27.7 |
29.3 |
29.6 |
29.1 |
27.7 |
26.4 |
24.8 |
|
Total (Finland) |
25.7 |
26.1 |
29 |
31.4 |
34.2 |
31.7 |
32.1 |
|
Women (EU28) |
24.5 |
26 |
26.3 |
25.7 |
24.6 |
23.2 |
22.1 |
|
Women (Finland) |
26.5 |
24.7 |
29.2 |
32.7 |
34.8 |
32.2 |
32.1 |
|
Men (EU28) |
38.5 |
39.9 |
40.2 |
39.9 |
37.6 |
36.2 |
33.4 |
|
Men (Finland) |
24.1 |
28.7 |
28.5 |
28.8 |
33 |
30.7 |
32.3 |
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 in the past six years. 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.
- FINLEX: Working Hours Act
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 only occur when the work concerned ‘is regularly carried out on the said days due to its nature, or when agreed upon in the employment contract, or with the separate consent of the employees’. 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. According to the act, the 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 period of three hours and so that the maximum amount of working hours remains at 40 hours per week.
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 decreased significantly in the past years, from over 40,000 in 2011 to around 30,000 in 2015.
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
|
All accidents |
44,737 |
34,316 |
35,741 |
40,302 |
34,821 |
35,532 |
33,124 |
30,871 |
30,129 |
|
Percent change on previous year |
-23.3 |
4.2 |
12.8 |
-13.6 |
2.0 |
-6.8 |
-6.8 |
-2.4 |
|
|
Per 1,000 employees |
20.3 |
16.2 |
16.9 |
18.8 |
16.2 |
16.7 |
15.7 |
14.8 |
14.3 |
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
|
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
|
Total |
45,621 |
43,576 |
40,473 |
37,958 |
36,020 |
35,233 |
|
Men |
31,333 |
29,517 |
27,058 |
25,332 |
23,469 |
23,015 |
|
Women |
14,288 |
14,059 |
13,415 |
12,626 |
12,551 |
12,218 |
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.
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, the proportion of workers receiving paid time off for training is greatest in establishments with over 250 employees in which around half of the workers have received paid training. However, national data show that smaller companies also have in the past twenty years significantly improved their efforts to develop the professional skills of their employees.
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.
More information on:
For Finland the European Company Survey 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.
Working life links
Working life links
Employers EK and Affiliates
- Confederation of Finnish Industries EK (EN)
- Technology Industries of Finland (EN)
- Finnish Cosmetic, Toiletry and Detergent Association (EN)
- Finnish Food and Drink Industries' Federation (EN)
- Finnish Energy ET (EN)
- Chemical Industry Federation of Finland (EN)
- Rubber Manufacturers’ Association of Finland RMAF (EN)
- Confederation of Finnish Construction Industries RT (EN)
- Finnish Textile and Fashion (EN) Finnish Commerce Federation (EN)
- Logistics Firms’ Association (FI)
- Finnish Hospitality Association MaRa (EN)
- Service Sector Employers PALTA (EN)
- Finance Finland FFI (EN)
- The Private Employment Agencies Association (EN)
- Finnish Association of Private Care Providers (EN)
- The Real Estate Employers (EN)
- Finnmedia (EN)
- Puusepänteollisuus (FI)
- The Finnish Port Operators Association (EN)
- Finnish Education Employers FEE (EN)
- Yhteinen toimialaliitto (FI)
Other organisations
- Local government employers KT (EN)
- Office for the Government as Employer VTML (EN)
- Church Employers KiT (FI)
- Federation of Employers in Agriculture MTA (FI)
- Employers’ Federation of Road Transport ALT (EN)
- SY – Federation of Finnish Enterprises (EN)
- Finnish Forest Industries Federation (EN)
Trade Unions SAK and Affiliates
- SAK - Central Organisation of Finnish Trade Unions (EN)
- AKT - Transport Workers' Union (EN)
- IAU - Air Transport Union (FI)
- Industrial Union (EN)
- KEY - Union of Supervisors in Commerce (FI)
- JHL – Trade Union for the Public and Welfare Sectors (EN)
- PAM - Service Union United (EN)
- Paperiliitto - Paper Workers’ Union (FI)
- PAU – Finnish Post and Logistics Union
- Rakennusliitto – Finnish Construction Trade Union (EN)
- Railway Union (EN)
- SEL - Finnish Food Workers' Union (EN)
- SMU - Finnish Seafarers' Union (EN)
- Tulliliitto - Finnish Customs Officers' Union (FI)
- Aliupseeriliitto (FI)
- Rajaturvallisuusunioni – The Border Security Union (EN)
- Finnish Musicians’ Union (EN)
- Teme – Trade Union for Theatre and Media Finland (EN)
- Yleinen Lehtimiesliitto (FI)
STTK and Affiliates
- STTK - Finnish Confederation of Salaried Employees (EN)
- ERTO - Federation of Special Service and Clerical Employees (EN)
- MVL - Federation of Technical Employees in the Dairy Industry (FI)
- SLPL - Finnish Ships’ Officers’ Union (EN)
- SuPer – Finnish Union of Practical Nurses (EN)
- Tehy - Union of Health and Social Care Professionals (EN)
- VvL - Union of Insurance Employees in Finland (EN)
- Jyty – Federation of Public and Private Sector Employees (EN)
- Trade Union Pro (EN)
- Engine Officers’ Union (FI)
- LTA – Union of Business Economy (FI)
- MeTo – Forestry Experts’ Association (FI)
- SPAL – Finnish Association of Fire Fighters (FI)
- RIA – Association of Finnish Construction Engineers and Architects (FI)
- Association of Agrologists (FI)
Akava and Affiliates
- Akava - Confederation of Unions for Academic Professionals (En)
- Akava Special Branches (En)
- Agronomiliitto - Finnish Association of Academic Agronomists (En)
- Association of Finnish Lawyers (En)
- Finnish Business School Graduates (En)
- AYR - Akava's General Group
- DIFF - Union of Swedish-speaking Engineers in Finland
- Finnish Dental Association (En)
- Finnish Medical Association (En)
- Finnish Psychological Association (En)
- Finnish Union of University Researchers and Teachers (En)
- Finnish Veterinary Association (En)
- OAJ - Trade Union of Education in Finland (En)
- Finnish Officers' Union (En)
- SAFA - Finnish Association of Architects (En)
- SFL - Finnish Pharmacists' Association (Fi)
- TEK – Academic Engineers and Architects in Finland (En)
- Union of Finnish Speech Therapists
- Finnish Union of University Professors (En)
- Union of Professional Engineers of Finland (En)
- YTY – Association for Managers and Professionals (En)
- MMA - Sales and Marketing Professionals (En)
- Terveydenhoitajaliitto - National Union of Public Health Nurses
- TRAL – Union of Professional Business Graduates in Finland
- Akavan sairaanhoitajat ja Taja (Fi)
- Trade Union Ava (Fi)
- Diakoniatyöntekijöiden Liitto (Fi)
- AKI – Kirkon akateemiset (Fi)
- Kasvatuksen ja nuorisotyön asiantuntijat KNT (Fi)
- Union of Technical Professionals KTK (En)
- Kuntoutusalan asiantuntijat (Fi)
- Union of Professionals in Natural, Environmental and Forestry Sciences Loimu (En)
- Institute Officers Union of the Finnish Defence Forces and the Border Guard (En)
- Talentia - Union of Professional Social Workers (En)
- SPJL – Finnish Police Federation (En)
- Finnish Association of Occupational Health Nurses (En)
- Social Science Professionals (En)
Other Trade Union Organisations
Government
Other Links
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.
Akava (2019), Akavan jäsenliittojen jäsenmäärät , web page, accessed 30 July 2019.
Asplund, R. (2007), Finland: Decentralisation Tendencies Within a Collective Wage, Working papers No. 1077, the Research Institute of the Finnish Economy, Helsinki.
Kela (2018), Kelan lapsiperhe-etuustilasto 2017, Helsinki.
Lyly-Yrjänäinen, M. (2018), Työolobarometri 2017 – Ennakkotiedot , Helsinki: Ministry of Economic Affairs and Employment .
Ministry of Social Affairs and Health of Finland (2016), Samapalkkaisuus , web page.
National Conciliator’s Office (2018), Statistics and Reports , web page, 30 July 2019.
Official Statistics of Finland (2018), Index of wage and salary earnings , Statistics Finland, Helsinki.
Official Statistics of Finland (2018), Occupational accident statistics , Statistics Finland, Helsinki.
Official Statistics of Finland (2018), Statistics on labour disputes , Statistics Finland, Helsinki.
SAK (2019), Jäsenmäärät , web page.
Sippola, M. (2012), ’Local bargaining and codetermination: Finnish experience in comparative perspective’, European Journal of Industrial Relations, Vol. 18, No. 1, pp. 53–69
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