Government sends its proposal on developing the conciliation system to Parliament

The reform would strengthen the consideration of the overall benefit of the national economy and the functioning of wage formation in the conciliation procedure. The Government submitted its proposal to Parliament on 3 October 2024.

The reform aims to strengthen the consideration of factors that affect the capacity of the national economy and Finland’s competitiveness in the conciliation procedure.

“The solutions emerging in mediation are reflected in the functioning of the labour market and the sustainability of wage formation. Well-functioning wage formation is one of the key factors contributing to Finland’s competitiveness and the overall benefit of the national economy,” says Minister of Employment Arto Satonen.

The proposed legislative amendments would affect the work of the National Conciliator, conciliators and conciliation boards. The social partners would still be able to conclude agreements with each other as before.

The Government proposes that the Act enter into force on 1 December 2024.

Mediation principles to be laid down in the Act and to apply to conciliation boards

In order to safeguard the overall benefit of the national economy, the conciliator should act during mediation in a way that does not jeopardise the functioning of the labour market while ensuring that the wage formation process operates as well as possible. 

The reform would also harmonise the practices of conciliation boards set up for a specific conciliation task.

When submitting a conciliation proposal, the conciliation board should consider aspects related to the overall benefit of the national economy as well as the functioning of wage formation and the labour market. The National Conciliator or a conciliator appointed by the National Conciliator would act as the chair of the conciliation board.

Inquiries:
Jaakko Aromaa, Special Adviser to the Minister of Employment, tel. +358 295 047 110
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001