Tripartite working group to prepare changes to the Co-operation Act

The Ministry of Economic Affairs and Employment has appointed a tripartite working group to prepare amendments to the Act on Co-operation within Undertakings (hereinafter, the Co-operation Act) and issues related to the board representation of employees. The changes are part of the Government’s package of labour market reforms.

The Government Programme’s entries on amendments to the Co-operation Act can be divided into three themes:

1. Scope of application based on the number of employees 
2. Duration of change negotiations
3. Board representation of employees

As per the Government Programme, the Government will raise the threshold for applying the Co-operation Act to the level permitted by EU provisions, i.e. to companies and corporations regularly employing 50 or more employees. Currently, the Act applies to companies and corporations employing at least 20 persons.

The requirements of the Co-operation Act regarding the minimum duration of change negotiations will be shortened by half. Currently, negotiations must be held for at least six weeks or 14 days, depending on the subject of the negotiations.

The Government Programme also states that any needs to amend the Co-operation Act, which was revised in 2022, concerning e.g. the board representation of employees will be assessed in the mid-term policy review session. Board representation refers to the representation of employees in the company’s administration, for example in the board of directors or senior management group.

Working group appointed for two terms

The working group’s first term will be from 11 December 2023 to 20 June 2024. During this period, the working group will prepare a report on raising the threshold for applying the Co-operation Act and shortening the duration of change negotiations. The report will be prepared in the form of a government proposal by 20 June 2024.

The second term of the working group will be from 1 January 2025 to 31 March 2025. During the term, the working group will discuss a report of the Ministry of Economic Affairs and Employment on the need to amend board representation. The report is set to be completed in early 2024. The Government’s mid-term policy review session to evaluate the need for amendments will be held in spring 2025.

The working group consists of representatives from the Confederation of Finnish Industries, Federation of Finnish Enterprises, Central Organisation of Finnish Trade Unions SAK, Confederation of Unions for Professional and Managerial Staff in Finland Akava, and Finnish Confederation of Professionals STTK. Nico Steiner, Senior Ministerial Adviser at the Ministry of Economic Affairs and Employment, will chair the working group.

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