Legislative project launched to implement the Finnish labour market model

The Ministry of Economic Affairs and Employment will appoint a tripartite working group to prepare legislative amendments to implement changes to the negotiation system, in accordance with the Government Programme. The Government’s aim is to promote the creation of an export-driven labour market model.

Minister of Employment Arto Satonen provided information about the preparation of the labour market model at an event organised by him on 16 January 2024. Those who have participated in discussions between the labour market organisations on developing the model as well as the National Conciliator were invited to the event.

“An export-driven wage formation model is natural for an open economy like Finland, which lives on exports. Our country must not only succeed in international competition but also be able to bear the costs of the welfare society,” says Satonen.

The event also discussed a summary of the feedback received on the Government Programme entries during the consultation round that ended on 9 January 2024.

Working group to begin work in February

In addition to the Ministry of Economic Affairs and Employment, the working group preparing the legislative amendments includes representatives from the Confederation of Finnish Industries EK, Office for the Government as Employer, Local Government and County Employers KT, Commission for Church Employers, Central Organisation of Finnish Trade Unions SAK, Finnish Confederation of Professionals STTK, Confederation of Unions for Professional and Managerial Staff in Finland Akava and a joint representative of the employee confederations. The working group will be chaired by Mika Nykänen, State Secretary to the Minister of Employment.

The working group will work until the end of May 2024 and its task is to prepare a report in the form of a government proposal. The aim is to submit the government proposal in September 2024 so that the legislative amendments could enter into force on 1 December 2024.

Project belongs to Government’s labour market reforms

The Government has outlined in its Programme that the Finnish labour market negotiation system needs to be improved. The objective is to strengthen the export-driven labour market model in order to boost Finland’s long-term competitiveness.

According to the entry in the Government Programme, provisions would be laid down in the Act on Mediation in Labour Disputes so that the general level of pay adjustments could not be exceeded by a settlement proposal issued by the National Conciliator’s Office or a conciliation board.

Inquiries:
Jukka Sarhimaa, Special Adviser to the Minister of Employment, tel. +358 295 047 330 
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001