Finland
Key Facts
| Population | 5,351,000 |
|---|---|
| Collective Bargaining Coverage | 91% |
| Proportion of Employees in Unions | 74% |
| Principal Level of Collective Bargaining |
industry – but much left to company negotiations |
| Workplace Representation |
union |
| Board-level Representation |
yes: state-owned and private companies |
| Company Board Structure |
monistic or dualistic |
Trade Union
Union density is high in Finland, with almost three-quarters of employees in unions. Individual unions, which have considerable autonomy, are organised in three confederations, broadly along occupational and educational lines. The three confederations are SAK, STTK and AKAVA.
more ...Collective Bargaining
Collective bargaining in Finland was predominantly centralised until recently with a national agreement setting the framework for pay increases at lower levels. In the 2007 pay round bargaining appeared to have permanently shifted to industry level with increasing room for company level flexibility on top. However, in 2011 a national framework agreement was again signed.
more ...Workplace Representation
Employee representation at the workplace is primarily provided by the local union bodies rather than through statutory structures. Legislation gives union representatives rights in companies and other organisations with 20 or more employees. (The employment threshold was reduced from 30 in 2007.)
more ...Board-level Representation
Workers in companies with more than 150 employees have the right to participate in management decisions. However, how this is done, whether in a single-tier board, a supervisory board or at operating level, is left to local negotiations, with the company having the final word.
more ...European-level Representation
The mechanisms for choosing representatives from Finland for European level bodies – both European Works Councils and the European Company – are not set out in detail by the legislation. Representatives are to be chosen by employees, and fallback provisions only come into effect if otherwise no agreement on the method of selection can be reached.
more ...Health and Safety
A safety rep and two assistant representatives must be elected by workers in any undertaking employing at least 10 people. Such a representative may be elected in undertakings with fewer than 10 workers.
more ...Financial Participation
Since the 1990’s employee financial participation and profit-sharing in particular have been increasingly encouraged by the Finnish government, mainly via new legal regulations and initiatives. Compared with the rest of Europe, participation schemes are widespread.
more ...