Draft act on promoting local collective bargaining sent for a regulatory impact analysis

The Ministry of Economic Affairs and Employment submitted a draft government proposal on increasing the opportunities for local collective bargaining to the Finnish Council of Regulatory Impact Analysis on 28 June 2024.

The Council selects the government proposals on which it will give a statement. After the Council’s statement, the Ministry will finalise the draft act. The Government plans to submit its proposal to Parliament in August 2024.

Increasing local bargaining is one of the Government’s reforms to develop the Finnish labour market into a more flexible direction. The Government’s goal is that in future local bargaining would be equally possible in all companies, regardless of whether the company belongs to an employer association or the kind of employee representation the company has.

Changes to the draft act made after the consultation

The draft act was prepared in a tripartite working group that was not unanimous in its work. The Ministry of Economic Affairs and Employment circulated the working group’s report for comments from 1 March to 12 April 2024. After the consultation round, both substantive and technical changes have been made to the draft act.

The most important changes concern the person from the employee side who can conclude a local agreement with the employer. According to the draft act, an agreement could be concluded with an elected representative if the employees had not selected a representative of the personnel referred to in the collective agreement. Unlike the draft proposal that was circulated for comments, the agreement could not be concluded together with the personnel. 

In non-organised companies with an elected shop steward, those employees who are not members of the employee organisation that has concluded the applicable collective agreement would have the right to appoint an elected representative alongside the shop steward to represent them in matters concerning local collective bargaining.

Monitoring compliance with local agreements in non-organised companies would be enhanced. Employers would be required to submit the local agreement concluded with the representative of the personnel to the occupational safety and health authority. A negligence fee would be imposed on employers that neglect this obligation.

Inquiries:
Jukka Sarhimaa, Special Adviser to the Minister of Employment, tel. +358 295 047 330 (questions to the Minister of Employment)
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001 (available on 28 June and from 5 August)