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Helsinki (04.03.2021 - Heikki Jokinen) The question of so called local agreements seems now to be centre stage of the Finnish labour market debate. The problem is that it is not clear exactly what people mean when they speak about local agreements.

In general, the trade union side focuses on flexibility in issues like organising work shifts, fixing holidays, and introducing working hour accounts.

From the employers side, local agreements seem to mean the possibility to cut pay below collective agreements and make working hours longer than agreed. Also, an opportunity to sidetrack unions and shop stewards in this process would appear to be important.

Helsinki (12.02.2021 - Heikki Jokinen) The forest industry giant UPM announced on 8 February that it will no longer participate in negotiations on collective agreements for salaried employees at any level in Finland. This unilateral refusal to engage in collective bargaining is not just based on a whim.

UPM had obviously decided to prepare well in advance and with a big budget for the more aggressive labour market actions it now pursues. After the Finnish Forest Industries Federation pulled out of collective bargaining last October, UPM hired two experienced chiefs from the Federation labour market department.

The highly competent UPM labour market staff has without doubt analysed very well the risks and costs of this new move. One factor is who will have more resources at their disposal in the event of strikes or lockouts: UPM or the unions?

Helsinki (10.02.2021 - Heikki Jokinen) The Finnish multinational forest company UPM announced on 8 February that it will no longer engage in any kind of collective agreements at any level for salaried employees in Finland. All terms of work will be negotiated on an individual basis.

Jorma Malinen, President of Trade Union Pro, sees this as the beginning of a serious effort to destroy the whole Finnish culture of collective agreements, as well as a determined assault on our welfare state.

Trade Union Pro estimates that switching from collective agreements to fully individual terms of work would mean, annually, a pay-cut of thousands of euro for those covered by the existing salaried employees collective agreements.

Helsinki (03.02.2021 - Heikki Jokinen) In 2019, a total of 476 million euro was granted by way of tax credits for household expenses in Finland. Since 2001, taxpayers have been able to claim costs for the acquisition of household services such as cleaning, renovations at home or in the summer house and child care to gain tax credit deductions for these services.

At present, the price of work can be reduced by 40 per cent for tax purposes, up to a maximum amount of 2,250 euros per person. The rules and maximum amounts that one can deduct have been changing over the years, as the issue is politically charged. The maximum amount ever that was deductible has been 3,000 euro and maximum percentage 60.

The purpose of the tax break is to improve employment in the service sectors included in the scheme and reduce tax evasion.

However, a new study by the Labour Institute for Economic Research PT and the Institute for Economic Research VATT suggests that these household deductions fail to meet both objectives. The study by Jarkko Harju, Sami Jysmä, Aliisa Koivisto and Tuomas Kosonen is published by the Prime Minister's Office.

Helsinki (21.01.2021 - Heikki Jokinen) Two Finnish trade union confederations SAK and STTK view the EU Commission proposal for a minimum wage positively and support its objectives. The federations issued a joint statement on this in December.

They attach much importance to the fact that the draft directive is strongly based on the promotion of collective bargaining. The federations place great value on promoting a system based on sectoral collective agreements in the member states as a key element in the proposal. This resembles the Finnish labour market model, too.

"The directive must support an increase in the minimum wage, especially in low-wage EU countries, and the best way to do this is through collective bargaining", the federations say. A comprehensive collective bargaining system is the wage and salary earners' best friend, experience has shown.

Helsinki (17.12.2020 - Heikki Jokinen) The Finnish Government proposes to amend the law to oblige employers to pay compensation to employees for all non-compete clauses in their employment contracts. Trade unions have long drawn attention to the fact that the existing law is unfair and has led to a fast and wildly growing number of such clauses.

At the moment, it is legal, under certain conditions and for a maximum of half a year, to limit an employee’s right to take a new job in the same trade or start up their own business in the same business area of their former employer.

The core of the problem is that - for up to six months - this kind of ban costs the employer nothing. The use of non-compete clauses has been extended to many professions where there are no real grounds for it at all.

Helsinki (01.12.2020 - Heikki Jokinen) The Finnish forest industry decision to unilaterally terminate national level collective bargaining is clearly a risk for companies in that sector and a leap into unchartered waters, says Jarkko Eloranta, President of the Central Organisation of Finnish Trade Unions SAK.

"The impacts of the forest industry’s decision are significant, the risks are considerable and mostly unknown as of yet. Companies don’t generally invite risk and unpredictability - they prefer control and predictability", Eloranta told the SAK Delegate Council meeting in November.

"And a functioning national collective bargaining system can deliver this. It does not offer clear victory for either side but it promises constant and predictable results that serve to build the economy and labour market."

15.11.2020 - (Heikki Jokinen) On Friday 13 November, the trade union Pro representative body elected Jorma Malinen to remain in charge of the union for the period 2020 - 2024. He has been Pro President since 2014.

"Our most important product in the labour market and for our members is collective bargaining and advocacy. One could say that it is the justification for our existence", Malinen said in the meeting.

However, we are going through times when doubt is being sown about the legitimacy of comprehensive collective agreements, Malinen said. He takes the forest industry as a front-line example. The employer's Finnish Forest Industries Federation FFIF announced in October that it will no longer participate in any national level collective bargaining.

Helsinki (12.11.2020 - Heikki Jokinen) The City of Oulu has distributed gift vouchers as a reward to those employees who did not participate in the strikes in September and October. JHL, the Trade Union for the Public and Welfare Sectors were incensed at this move by the City.

JHL, together with the Federation of Public and Private Sector Employees Jyty opposed the plans to outsource food, cleaning and ICT services in Oulu. This led to a one-day warning strike at the end of September followed by a three-day strike one week later.

The City Council, however, voted in favour of outsourcing. After a tied vote the council chairperson’s casting vote proved decisive.

Helsinki (03.11.2020 - Heikki Jokinen) Food couriers are employees, not entrepreneurs, says Finland's Labour Council. It released two statements on the issue in October. Service Union United PAM welcomes the statements.

The Council is an independent special authority under the Ministry of Economic Affairs and Employment. It issues opinions on labour legislation, but the statements are not legally binding. Three of the members represent wage and salary earners, three the employers and three are independent experts.

The Regional State Administrative Agency requested opinions from the Labour Council regarding the application of the Working Hours Act to food couriers of two companies. The key issue was whether a food courier is to be considered an employee or an entrepreneur.