TEK finds amending the Act on Mediation in Labour Disputes unnecessary and, in its comment (in Finnish), argues that this would cause instability and uncertainty in the labour market.
The Government proposal (in Finnish) would affect the balance of power in the labour market in favour of employers. In reality, the change would affect the entire formation of the negotiation process and the negotiating position, despite the Government proposal repeatedly stating that the changes would not limit the parties’ opportunities to agree freely on pay increases between themselves in whatever way they wish.
“The requested and submitted comments show that all employee organisations are strongly opposed to the Government proposal. The Chancellor of Justice and the Ombudsman for Equality have also issued critical comments. Employers’ organisations, on the other hand, are strongly in favour of the proposal. This polarisation clearly indicates that the proposal only benefits employers and is made entirely in their favour,” says TEK's Labour Market Director Teemu Hankamäki.
“The labour market system and especially the position of the national conciliator should not be changed in this way by coercion on the terms of one party. This erodes trust in the conciliation procedure and limits the conciliator's options for mediating labour disputes.”
In its comment, TEK also argues that the idea of restricting conciliation through legislation is unnecessary and downright detrimental to free sectoral wage formation. In all likelihood, the proposal will also reduce gender equality.
Finland needs a new labour market model
According to TEK, wage formation should be sectoral and different contract branches should always be able to negotiate their pay in view of the situation in the branch at the time. The national conciliator and the conciliation board should also follow this principle and promote sectoral wage formation through conciliation.
“The withdrawal of the Government from the proposal in its current form would allow the main parties to collective bargaining to negotiate an entirely new labour market model, which is something that Finland absolutely needs. However, negotiation is not possible as long as the Government is driving the proposal forward, since the employers have no interest in negotiating a broader solution that deviates from the proposal. The situation that employee organisations are now faced with feels like choosing between the plague and cholera.”
TEK also points out that the national conciliator is an institution whose primary task is to promote the performance of the labour market and to act as a mediator in labour disputes.
According to the Act on Mediation in Labour Disputes, it is the duty of the national conciliator, in cooperation with the labour market organisations, to endeavour to further the relationships between employers and employees or public officials and their organisations. This is why amending the law without a consensus between the labour market organisations weakens the conditions for performing the statutory duties of the national conciliator and the parties’ trust in the work of the institution.
Eroding trust would pose a threat to the independence and neutrality of the institution. The national conciliator and the conciliation board must be given a genuine opportunity to take sectoral needs into consideration during the conciliation process, TEK emphasises in its comment.