Legal reform targets gender-based pay differentials

(Helsinki 09.03.2005 - Juhani Artto) In 1987 the average pay earned by women in Finland was 80 per cent of the average pay earned by men. By 2003 this differential had not narrowed. Researchers widely agree that about half of the disparity is due to sex discrimination.

There are no significant forces in Finnish society that approve of this kind of pay differential, and a legal reform is under way to tackle the injustice. Over the coming months the Finnish Parliament will consider some amendments to the Act on Equality between Men and Women, which took effect on 1 January 1987.

If, as expected, these amendments are approved, then all enterprises employing at least 30 people will have a legal duty to formulate a gender equality plan and to update this plan every year. While the present Act includes such a requirement, it imposes no sanctions for non-compliance. This has proved to be a weakness, as only one-third of enterprises subject to this duty have produced an equality plan.

The new legislation, which has been prepared by the government with partial involvement of labour market organisations, will include the option of imposing fines on enterprises that neglect this obligation.

The annual equality plan must include an analysis of the gender equality situation at the workplace. This analysis comprises data on the kind of jobs performed by women and men, and on their corresponding pay. The analysis is intended to expose any gender-based pay differentials, but not to reveal the wages and salaries of individuals.

However, if there are prima facie grounds for suspecting that discrimination is occurring, then the shop steward will be entitled to information concerning the terms of service of employees performing the same duties as the suspected victim of discrimination. The Gender Equality Ombudsman* will be empowered to procure this information from any employer who refuses to advise the shop steward in this way, and if the Ombudsman considers the suspicion to be justified, then the information will be forwarded to the shop steward.

Employees who suffer discrimination will be entitled to compensation.

The amendment will also require employers to promote gender equality actively, and to co-operate with staff when formulating gender equality plans.

* The Gender Equality Ombudsman is an independent public official who supervises compliance with the Act on Equality between Women and Men. Read more at www.stm.fi/Resource.phx/tasa-arvo/english/authorities/ombudsman/tasks.htx

Read also

• Half of all men recognise the existence of sex discrimination at work (9.3.2005)
• Gender discrimination accounts for half of pay differential between women and men (2.9.2001)

This article was first published in Trade Union News in Finland.