Report on current state of local collective bargaining paves the way for further work

A recent report published by the Ministry of Economic Affairs and Employment describes the current state of local collective bargaining and the conditions for promoting it in Finland. In addi-tion to the legal framework, the report examines different parties’ experiences of the practical challenges and opportunities related to local collective bargaining.

The report provides an overview of the collective agreements systems and local collective bargaining in the other Nordic countries, the Netherlands and Germany. The report compares, among other things, wage formation as well as working hours and their flexibility.

The effects of local collective bargaining on the national economy and employment are examined in the light of research literature. According to studies, the impacts of increasing local collective bargaining on productivity and employment depend on how the bargaining is carried out and how companies and the labour market adapt to the change.

The report was drawn up on the basis of the work of one of the task forces of the Ministerial Working Group on Promoting Employment (task force 7). The report does not include any proposals for promoting local collective bargaining. The task force will start preparing proposals at the beginning of 2020.

Inquiries:
Nico Steiner, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 049 001
Elli Nieminen, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 048 247