Plan to enhance the labour market model sent out for comments

The Government is set to strengthen Finland's labour market model. A tripartite working group, which drafted the amendments to the system of mediating labour disputes, did not reach a unanimous agreement. The Ministry of Economic Affairs and Employment will circulate the working group’s report for comments between 4 June and 30 July 2024.

The Government's labour market reforms include a plan to strengthen the Finnish labour market model. The Government aims to improve Finland's long-term competitiveness, and the capacity of the national economy. The tripartite working group was tasked with drafting legislative amendments to implement the related objective, which was set out in the Government Programme.

The proposed legislative amendments would affect the work of the National Conciliator, conciliators and conciliation boards. The social partners would still be able to conclude agreements with each other as before.

The information presented below is based on the working group's report. The content of the legislative proposal may change during further drafting.

Consideration of the general level of pay adjustments in mediation to be laid down in law

The reform would strengthen the consideration of the general level of pay adjustments in mediation. This practice is already applied in mediation, but the reform would incorporate the principle into the law.

In order to safeguard the national economy and public interest, the conciliator would be required to act during mediation in a way that does not jeopardise the functioning of the labour market while ensuring that the wage formation process operates as well as possible. Provisions on this would be laid down in the Act on Mediation in Labour Disputes and the Preconditions for Certain Industrial Action. 

The conciliator should encourage the parties to the labour dispute to reach negotiated solutions that are balanced in terms of Finland’s competitiveness and well-functioning wage formation. This principle should also be observed by the conciliator when submitting a proposal for settlement.

Practices of conciliation boards to be harmonised

The reform would harmonise the practices of conciliation boards set up for a specific conciliation task. The activities of a conciliation board would be more strongly tied to the provisions of the Act concerning mediation in labour disputes. 

In its proceedings, a conciliation board would be required to adhere to the same principles that promote the functioning of the labour market as the conciliator. The provisions on the submission of a settlement proposal would also apply to a settlement proposal issued by a conciliation board.

The conciliation board would be chaired by the National Conciliator or a conciliator appointed by the National Conciliator. The Ministry of Economic Affairs and Employment would appoint the other members of the conciliation board based on a proposal by the National Conciliator.

Act is scheduled to enter into force by the end of autumn session

The Ministry of Economic Affairs and Employment appointed a working group to prepare the legislative amendments on 29 January 2024. In addition to the Ministry of Economic Affairs and Employment, the working group 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. A dissenting opinion on the report was submitted by the Confederation of Finnish industries EK, Local Government and County Employers KT, and the employee confederations SAK, Akava and STTK.

The Ministry of Economic Affairs and Employment will circulate the working group’s report for comments between 4 June and 30 July 2024. The aim is to submit the government proposal in September 2024 so that the legislative amendments could enter into force by the end of the autumn session 2024.

Inquiries:
Mika Nykänen, State Secretary, tel. +358 295 047 266
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001