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New co-operation law gives employees more say

Lauri Lyly

Finland is to revise its legislation on co-operation between employers and their staff. A working group of representatives from the Finnish government and both sides of industry submitted a proposal for a new co-operation statute to the Ministry of Labour in the middle of June.

&#;8220The revised Co-operation Act will be more straightforward and will give employees more say at work. Together with new legislation on employee security in enterprise downsizing and on subscriber liability, the new Act will make working life more equitable,” explains Lauri Lyly, who represented the Central Organisation of Finnish Trade Unions – SAK on the working group.

The working group recommends extending the scope of the Act to include all workplaces of at least 20 employees and to cover associations and foundations. This enlargement of scope was one of SAK’s main objectives for the current round of legislative reform. Currently the Act applies in workplaces of 30 employees or more. The enlargement will bring a further 2,600 businesses within the scope of the Act, and SAK estimates that about 80,000 employees will be affected.

The proposed legislation will emphasise the importance of seeking full consensus in co-operation negotiations. Such negotiations would always be necessary whenever substantial changes in duties, working methods or work organisation were envisaged. The proposal would also require more detailed human resources planning than is presently necessary. This would include in-house staffing levels, type of employment and vocational skills requirements, together with associated training targets. Planning would also have to allow for the balance between work and family life.

The new Act would likewise improve the availability of information on the use of labour. One entirely new feature of the Act would be provisions on subcontracting. The principles governing the use of subcontractors would have to be reviewed every year. This review would have to specify the type of work and the time when subcontractors are to be used.

“If the use of subcontractors or agency workers substantially affects the position of the staff, for example by changing their duties, then this use will have to be negotiated with the staff,” Lauri Lyly explains.

Employers who infringe the new Co-operation Act would be liable to pay tax-free compensation of up to EUR 30,000 to any employees who are affected. The new law would also provide for a conditional fine to be imposed on the employer for failure to provide proper information or to prepare a human resources plan.

The working group also proposes that a separate Act largely in line with current co-operation statutes should be introduced for co-operation within corporate groups. Both of these proposed new statutes reflect Finland’s international commitments, and particularly the Information and Consultation Directive and the European Works Council Directive of the European Union. The Finnish Parliament will begin considering the new proposals in the autumn.

The proposed new Co-operation Act will not apply to the local or central government sector. It is the view of SAK that legislation should also be introduced to ensure codetermination opportunities for staff in the local government sector. This sector employs some 430,000 people in Finland.