In a surprising turn of events, the Finnish government has unveiled a series of workplace reforms that have left the business community thrilled. The changes, outlined in the government program, aim to promote local bargaining, ease temporary contracts and individual-based terminations, address unlawful strikes, and revamp social security. "The needs of businesses and the workforce have finally been acknowledged. Non-unionized employers and employees have long been marginalized in labor legislation.
Now, thanks to a long-fought-for change advocated by Entrepreneurs, this discrimination will come to an end," says Janne Makkula, Director at Entrepreneurs Finland (Suomen Yrittäjät).
"The program's emphasis lies strongly on facilitating employment. It takes time for decisions to translate into improved job opportunities. That's why it's crucial to introduce these reforms to the parliament at the beginning of the government's term. Extensive and protracted tripartite preparations are unnecessary," Makkula asserts.
Although collective agreements have allowed for local bargaining, statutory restrictions have so far excluded non-unionized companies from enjoying these flexibilities.
"Moreover, the opportunities for bargaining have often been locked behind what is commonly known as the 'shop steward's lock.' This means that only employees belonging to a trade union have been able to participate as negotiating parties," Makkula explains.
According to the government program, the prohibitions on local bargaining affecting non-unionized companies that adhere to a generally applicable collective agreement will be abolished. The negotiating parties can now include a shop steward, an elected employee representative, another chosen representative, or the entire staff, thereby eliminating the so-called "shop steward's lock."
"We have long advocated for equality and the removal of bargaining prohibitions. This inclusion in the program is highly welcome and significant," Makkula affirms.
Significant Increase in the Threshold for Co-Determination Negotiations
Henceforth, co-determination negotiations should take place in companies with a minimum of 50 employees, up from the current threshold of 20 employees. Additionally, the minimum duration for negotiation procedures will be halved.
"Bureaucracy will be reduced as small businesses are exempted from co-determination obligations. Small companies are known to have favorable working conditions, trust, and effective communication. While promoting good cooperation is crucial, legislation should not shackle collective efforts into one mold," Makkula argues.
"Taking Big Steps towards Competing Nations"
Finland is now making significant strides toward aligning its labor legislation with that of its main competitors.
"For example, in Germany, measures were taken to ease individual-based terminations, introduce more flexible use of fixed-term contracts, and significantly enhance local bargaining opportunities. These reforms had a substantial impact on Germany's employment trends," Makkula highlights.
"While Finland may not go as far, we are nonetheless implementing measures that were previously unattainable. We are extremely pleased with this development," Makkula concludes.
The recent workplace reforms proposed by the Finnish government have ignited a sense of optimism among entrepreneurs. The emphasis on local bargaining, the easing of employment regulations, and the removal of discriminatory restrictions are seen as positive steps toward enhancing job opportunities and aligning Finland's labor practices with those of its global counterparts. As these reforms take shape, it remains to be seen how they will influence the country's employment landscape and foster a more favorable environment for businesses and workers alike.
HT