State Secretary Nykänen’s review of conditions for starting negotiations of the Finnish labour market model has been completed

As assigned by Prime Minister Petteri Orpo, Mika Nykänen, State Secretary to the Minister of Employment, has met with the main labour market organisations and reviewed the conditions for starting bipartite negotiations on the Finnish labour market model. The organisations consider the preparation of a common agreement-based labour market model to be necessary. Some of the organisations, however, have preconditions for starting negotiations. State Secretary Nykänen has reported the results of his review to both Prime Minister Orpo and Minister of Employment Arto Satonen.

State Secretary Nykänen met with the following labour market organisations between 12 March and 20 March 2024: Union of Health and Social Care Services Tehy, Central Organisation of Finnish Trade Unions SAK, Service Union United PAM, Confederation of Finnish Industries EK, Trade Union Pro, Union of Professional Engineers in Finland, Academic Engineers and Architects in Finland TEK, Trade Union for the Public and Welfare Sectors JHL, Finnish Union of Practical Nurses SuPer, Finnish Construction Trade Union, Finnish Transport Workers’ Union AKT, Trade Union Jyty, Trade Union of Education in Finland OAJ, Negotiation Organisation for Public Sector Professionals JUKO, Service Sector Employers Palta, Technology Industries of Finland, Chemical Industry Federation of Finland, Office for the Government as Employer, Employers in the Municipal and Welfare Sector KT and Finnish Commerce Federation.
 
In its programme, the Orpo Government has outlined the goal of strengthening the export-driven labour market model. According to 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. The Government has stated, however, that it hopes that social partners will reach an agreement on the labour market model instead of the implementation the Government Programme entry.
 
In his review, State Secretary Nykänen found that all labour market organisations consider the preparation of a common agreement-based labour market model to be necessary. All the organisations would like the model to be prepared primarily through agreement. Some of the organisations, however, have preconditions for starting negotiations. 

The work of the tripartite working group preparing legislation in accordance with the Government Programme entry is scheduled to continue until the end of May. Based on State Secretary Nykänen’s review, it is justified to proceed with the legislative preparation as planned.

Discussions on the labour market model began in November 2023

On 8 November 2023, Minister of Employment Satonen organised a seminar at which the development needs of the labour market negotiation system and the different options for implementing the policies outlined in the Government Programme were discussed. Following this, the Government Programme entry regarding the labour market model was circulated for consultation. 
 
In November-December 2023, the main labour market organisations held bipartite discussions on strengthening the export-driven labour market model through agreement. The discussions did not lead to the start of negotiations, however.
 
Progress on the legislative preparation of the labour market model was discussed at an event organised by Minister of Employment Satonen on 16 January 2024, which was attended by the National Conciliator and the labour market organisations that participated in the bipartite discussions at the end of 2023. The event also discussed a summary of the feedback received on the Government Programme entry during the consultation round that ended on 9 January 2024.
 
At the end of January 2024, the Ministry of Economic Affairs and Employment set up a tripartite working group to prepare a proposal on the Government Programme entry regarding the export-driven labour market model. After the working group has completed its work, the draft proposal will be circulated for consultation, and the final Government proposal is expected to be submitted to Parliament in September 2024. The law is due to enter into force on 1 December 2024.
 
Prime Minister Orpo invited the main labour market organisations and the National Conciliator to discuss the labour market model at Kesäranta, Prime Minister's Official Residence, on 8 March 2024. After the discussions, the Prime Minister assigned State Secretary Nykänen to review in more detail the organisations’ views on starting negotiations on the labour market model.

Inquiries:
Veera Svahn, Special Adviser to Minister of Employment, tel. +358 295 047 321