The Finnish labour market system
Trade unions
Why should you join a trade union?
Anyone working in Finland can become a trade union member. Trade unions support and help you in all problems that you might face as an employee.
You do not need to fully understand the content of the laws and collective agreements. If you feel that something is not right at your workplace or in your employment, you can always ask your trade union for help. Even the smallest unclear detail can be an important one.
The shop steward represents the trade union at your workplace. If there is no shop steward at your work, you can contact the trade union directly for advice.
Shop steward
  • is a person elected by the members of a trade union that employees can trust
  • helps employees belonging to the trade union at the workplace
  • knows the laws and the collective agreement of your industry
  • listens and can provide advice on what to do
  • speaks on your behalf to your supervisor, for example
  • can also help if the problem cannot be solved by discussing the problem with your supervisor.
The trade union has negotiated a collective agreement with the relevant employers’ association. The collective agreement includes the terms for employing workers and for working. The agreements usually apply to a single industry, such as house construction. Negotiating is often hard work. Your trade union will have more negotiating power if it has a large number of members. By joining a trade union, you make the union stronger. This means that the trade union will be able to negotiate the best possible terms of employment for you.
Which trade union is yours?
You should join the trade union that negotiates the collective agreement used specifically for your work or at your workplace. One workplace can have employees belonging to a variety of trade unions.
You can ask your co-workers which trade union they belong to or find your own trade union here.
How to join the trade union
If you do not know what your trade union is
  • ask the shop steward at your workplace
  • call SAK’s service number 0800 179 279
  • check your union’s web page at www.liitot.fi.
Fill in the subscription form on the trade union’s web pages. You can find links to subscription forms at www.liitot.fi.
If you need help, the shop steward at your workplace helps.
Members of a trade union pay ta membership fee to the union. You can pay the membership fees yourself or ask the employer to pay them from your salary.
7 reasons to belong to a trade union
When you start work, join a trade union. In Finland, the majority of employees belongs to the trade union of their sector. You can also join a trade union already during you study time.
1 The trade union is on your side
It negotiates on your behalf on salaries and other conditions of employment with the employers’ federation. This results in a collective agreement that gives you better conditions of employment than those stipulated by law.
2 Shop stewards advise and help you at the workplace
The shop steward represents the trade union and supervises that the employer complies with the collective agreement. If you have problems with the employer, you can always report it to a shop steward who can investigate the matter with the employer on your behalf.
3 The trade union’s employment counselling will help you if you have problems with the employer
You can call your union and ask for advice. If required, trade union lawyers can help you to resolve any disputes with your employer, even in court.
4 Trade unions enforce the interests of employees when laws are decreed
Thanks to trade unions, in Finland the working week is 5 days; the working day is no more than 8 hours, and employees are entitled to holidays, overtime compensation and holiday payments.
5 The trade union provides training, events and a community
You can find information about the training and events provided by trade unions, for example, on the web pages or social media channels of your trade union.
6 Your unemployment benefit improves if you also join an unemployment fund
When you join a trade union, you can also join the unemployment fund of your sector. If you are unemployed, the unemployment fund can pay you a unemployment daily allowance. It is usually better than the basic daily allowance paid by Kela. If you only belong to an unemployment fund, but not a trade union, you can receive unemployment benefit, but the fund will not help you with any problems at the workplace.
7 You receive benefits and discounts
Members of trade unions may receive discounts in, for example, petrol, insurances or hotel prices. Some trade unions offer, for example, cheap holiday cottages.
Local trade unions and staff associations
When you are member of a trade union, you usually belong to one of its local trade unions or staff associations. The local trade union or staff association brings together all members of the same trade union working in the workplace or the company. There are also local trade unions and staff associations that include all members of the same sector or region, in which case employees from several different workplaces may belong to them.
A collective agreement is different from an employment contract
A collective labour agreement is an agreement on the conditions of employment of the sector. The federation of employers and the trade union of employees negotiate it with each other.
There are separate collective agreements in different sectors (such as the restaurant sector, the cleaning sector, the construction sector, etc.). They specify the general conditions of employment in the sector, that is, the rules according to which work can be carried out and commissioned. The collective agreement determines, for example, how much salary must at least be paid to an employee and what the working hours are in the sector in question. The collective labour agreement is concluded for a fixed term, usually for 1-3 years.
The public sector – the state, municipalities and parishes – also has regular employees in a service relationship, whose salaries and other conditions of the service relationship are agreed upon in collective bargaining agreements on civil servant salaries.
The conditions of employment entered into the employment contract must be at least as good from the employee’s point of view as the conditions of employment of collective agreements. Conditions of employment better than those of collective agreements can also be agreed upon in an employment contract.
When you start at a new workplace, ask which collective labour agreement is applied there. You can obtain a collective agreement from your workplace or the trade union of your sector or from Finlex’s online service.
Trade union confederations and employers’ confederations
Trade unions and employers’ associations are organisations representing employees and employers.
In the Finnish labour market system, the social partners of the labour market – trade unions and employers’ associations – agree on the terms and conditions of employment. Trade unions in Finland belong to one of three and employers’ associations to one of four confederations.
Finnish trade unions and trade union confederations also have a say in what kinds of labour laws are made in Finland. They work with the Finnish Government and the Parliament, for example.
Trade union confederations
Employees are represented by three confederations, whose members are trade unions from different industries.
Central Organisation of Finnish Trade Unions (SAK)
SAK represents employees working in manufacturing, transport and the private service sector, culture and sports, and employees in the public sector, such as people working in factories, municipal employees, retail and restaurant workers, cleaners and bus drivers.
Confederation of Unions for Professional and Managerial Staff in Finland (Akava)
Akava represents employees with university, professional or other high-level education, such as teachers, masters of science and economists.
STTK
Among other things, STTK represents experts working in factories, day care centres, nursing homes, hospitals and banks.
Employers’ confederations
Employers are represented by 4 confederations whose members are employers’ associations from different industries.
Confederation of Finnish Industries (EK)
EK represents employer companies in the private service sector, such as cleaning and property management services, a range of manufacturing industries, retail, and the tourism and restaurant sectors, for example.
Local Government and County Employers (KT)
KT represents municipalities as employers. It negotiates on employment terms and conditions, such as salaries, with the trade unions representing municipal employees.
State Employer’s Office (VTML)
VTML represents the state as an employer. It negotiates on employment terms and conditions, such as salaries, with the trade unions representing state employees.
Commission for Church Employers (KiT)
KiT represents the Evangelical Lutheran Church of Finland and its parishes as employers and negotiates with the trade unions representing church employees.
Industrial action
Industrial actions means, for example, going on a strike, banning overtime, or implementing a lockout.
Strikes and overtime bans are employee industrial actions. Lockouts are initiated by an employers’ association.
Industrial actions are last-resort actions, and should only be used if an agreement on the terms and conditions of employment cannot be reached otherwise. Industrial actions are based on the collective power of employees and you have the right to participate in strikes or other industrial actions with the permission of your trade union without fear that your participation would lead to negative consequences. In Finland, the right to organise a strike is strongly secured by legislation.
How does a strike begin?
Employees or employers may initiate industrial actions when a collective agreement is not in force. Industrial actions are usually initiated during negotiations for a new collective agreement.
If employees go on a strike, their trade union must notify the employer and the National Conciliator’s Office at least 2 weeks before the strike begins. The notification must include the grounds for the strike, its start time and its scope.
Employees can also go on a strike to express their dissatisfaction or to pressure political decision-makers. Even then, the National Conciliator’s Office must be notified. The duration of grievance strikes and political strikes is usually declared in advance.
Employees can also go on a sympathy strike. The aim of a sympathy strike is to help employees in another industry to reach an agreement. Sympathy strikes must also be notified in advance.
A union branch, personnel association or trade union may be ordered to pay fines for unlawful industrial action and for failing to comply with their duty to supervise compliance with the collective agreement.
What is your source of income during a strike?
You will not be paid wages while you are on a strike. You will also not be entitled to any benefits paid by the employer, such as the meal benefit, during a strike.
However, you may get strike pay if you are a trade union member.
Any pay for work that you have already done will be paid to you on the regular pay days during a strike as well.
What is a lockout?
A lockout is an industrial action initiated by employers used to prevent employees from working.
The employers must notify the employees’ trade union and the National Conciliator’s Office of the lockout in writing at least two weeks before the lockout begins. The notification must include the grounds for the lockout, its start time and its scope.
An employers’ association may be ordered to pay compensatory fines for unlawful industrial action and for failing to comply with its duty to supervise compliance with the collective agreement.
The National Conciliator
The National Conciliator acts as a mediator in labour disputes with the aim of preventing the affected employees or employers from having to resort to industrial action. If the negotiations for a new agreement do not proceed after the agreement period of a collective agreement has ended, the trade union may issue a strike warning or the employers’ association may issue a lockout warning. Next, the National Conciliator mediates between the social partners to find a solution that both the trade union and employers’ association are willing to agree to and to prevent both parties from having to resort to industrial action.
The National Conciliator will steer the negotiations even if the strike or lockout is started. In most cases the National Conciliator submits a proposal for a compromise for the parties to accept. The trade union and the employees’ association then either accept or reject the proposal.
In Finland, mediation is mandatory but reaching an agreement is not. This means that the trade union and the employers’ association must participate in the negotiations, but they are not obligated to make an agreement.
Labour Court
If a dispute related to a collective agreement arises while the agreement is still in force, the matter can be resolved by the Labour Court. The Labour Court only resolves disputes concerning collective agreements and provides other courts with opinions on these disputes.
The Labour Court may impose a fine on a trade union branch, personnel association, trade union or an employers’ association for unlawful strikes, lockouts or other violations of the relevant collective agreement.
The Labour Court’s decision cannot be appealed against to any other court of law.
Cooperation at the workplace
Cooperation at the workplace refers to the employer negotiating with the employees. The Act on Co-operation within Undertakings exists to ensure that employers and employees can jointly develop the work and the working conditions.
According to the Act, employers must discuss with their employees on matters related to their work. The employer must provide the employees with all important information within a reasonable time.
The employees have the right to propose improvements on their working conditions. The employer must listen to the proposals and give a response to them.
Large employers with more than 20 employees must organise employee co-operation negotiations before reducing the number of personnel. In the negotiations, other solutions are sought to replace dismissals.
More information:
Tyosuojelu.fi
Are you having problems with your employer?
If you have any problems with your employer relating to, for example, your pay or other employment terms and conditions or the terms of your collective agreement, try to discuss the matter with your employer first. Many issues are solved by communication.
If the problem is not solved, ask for help and advice:
If you are a trade union member
Talk to your shop steward or occupational safety and health representative at your workplace or of your union. If the problem cannot be resolved with help from the shop steward, contact your trade union’s regional office or your union’s helpline.
If you are not a trade union member
Talk to a colleague or occupational safety and health representative or your workplace. If the issue cannot be resolved, you can contact the occupational safety and health authorities or SAK’s employee rights helpline.
Are you having problems with your wages?
Keep a record of the hours you work and compare the record to your payslip. The employer must provide the employee with a payslip when the employer pays wages. Keep your payslips.
If you notice any errors or deficiencies in your pay, follow these steps:
1. Ask your employer to pay the missing amount. Send your request by text message or email.
2. If your employer does not pay the amount owed to you, regardless of your request, contact your trade union. If you are not a member of a trade union, you can contact your legal aid office or a law firm, for example.
If an employer is unable to pay because it does not have the money, apply for pay security immediately. You can receive the unpaid amount through the pay security system if your employer is unable to pay.
Act quickly! The pay security application must be submitted within three months of the date on which you were supposed to receive your pay.
More information:
Instructions on how to apply for pay security
Contact information for legal aid offices
Recognise exploitation at work
Industrial exploitation means, for example, that the employer
  • pays less salary than what the collective agreement and the law prescribe (underpayment)
  • does not give an employee days off prescribed by law and the collective labour agreement
  • requires employees to work too long days without compensation
  • collects money from the employee as a compensation for the job or the residence permit
  • prohibits the employee to take sick leave
  • does not arrange for occupational health service
  • provides inhumane housing conditions.
Industrial exploitation occurs also in Finland. Often, the victim is an employee with a foreign background. He or she may not know the rules of Finnish working life or fears that he will lose his right of residence.
If you suspect that you are the target of criminal exploitation of workforce, you can contact the police or Victim Support Finland (RIKU). You can contact Victim Support Finland confidentially and get advice on how to proceed. Please contact by e-mail (help@riku.fi) or by phone (including text messages or WhatsApp) to 040 632 9293.
If the exploitation is also associated with limitation of freedom, coercion, pressurising, threatening, forcing to take debt, misleading or violence, it can have the constituent elements of human trafficking. You can contact the assistance system for victims of human trafficking by calling 0295 463 177 (www.ihmiskauppa.fi/en).
Residence permit or certificate because of exploitation by the employer
If you have been the victim of an employer’s exploitation and significant neglect, you can apply for an extension permit or certificate of an extended right to work and change your employer. You must have a residence permit in Finland that includes the right to work. Read more tat the Finnish Immigration Service’s online service.
Read more:
Police: Reporting an offence
Victim Support Finland
System of assistance for victims of human trafficking
Labour laws
Labour law applies to all employers
In addition to collective agreements, the Finnish legislation regulates carrying out and commissioning work. They cover all sectors. Labour law prescribes what can be agreed upon in collective agreements and employment contracts. Salaries and other benefits may not be inferior to those stated by law and collective agreements. If your employer is not obligated to abide by a collective agreement, they must still abide by Finnish legislation.
What does ‘tripartite’ mean?
In Finland, the Parliament enacts labour laws, but the laws are agreed on a tripartite basis first.
‘Tripartite’ means that the trade union confederations and employers’ confederations negotiate with the government on all laws related to work. The confederations include the trade union confederations SAK, Akava and STTK and the employers’ confederations EK, KT, VTML and KiT.
Tripartite negotiations are not a Finnish invention; the concept is well-established in history. Finland is committed to tripartite negotiations on matters related to work in international agreements.
Specialists from SAK and its member unions represent their members in the tripartite negotiations. They share their views on what is best for the employees during the negotiations. They are experts at safeguarding the interests of employees. They are also familiar with the everyday operations of their members’ workplaces.
For example, the pension system, occupational safety, and social security are developed tripartitely. The solutions developed by tripartite working groups are often compromises. They are often associated with many other issues and the impact of the tripartite work cannot always be seen. However, their work does have a significant impact on the everyday lives, rights and working life of workers.
Shadow economy
‘Shadow economy’ refers to companies trying to gain financial benefits by neglecting some of their obligations as employers.
Phenomena of the shadow economy include, for example:
  • undeclared labour, which means that the employer pays its employee without withholding the statutory contributions and taxes from the employee’s pay
  • applying for social security benefits without the right to receive them
  • companies trying to gain financial benefits by using leased labour providers and subcontractors that have not taken care of their obligations as employers.
The shadow economy does not exist if everyone follows the rules.
The shadow economy is detrimental to you and the society. If the statutory employer contributions and taxes are not withheld from your pay, you will not accrue a pension. It also means that your employer has not insured you against accidents. Furthermore, you will not have the right to receive earnings-related sickness allowance or unemployment allowance. The society is deprived of the taxes normally paid for the work.
In Finland, authorities, policymakers and trade unions, among others, work together to avoid having a shadow economy.
For example, the occupational safety and health authority works to prevent a shadow economy. It monitors the following among other things:
  • employers only hire foreign employees who have the right to work in Finland
  • employers pay wages to the employees according to a collective agreement at a minimum
  • the employees’ working hours and overtime are in compliance with legislation and agreements
  • companies only enter into leased labour and subcontracting agreements with companies and employees that comply with legislation.
The international labour movement
The European Union affects the Finnish legislation on working life
Legislation or changes to agreements regulating work in Finland are often made because the European Union (EU) prepares a new agreement related to labour. After the EU adopts the agreement, the work is continued in the Member States. In Finland, SAK and the other trade union confederations and employers’ confederations participate in this work.
European labour-market-related confederations have the power to negotiate and agree on matters proposed by the European Commission. If an agreement is reached, the content of the agreement can be adopted by an EU Directive.
This cooperation and negotiations between the confederations is called social dialogue. Agreements formed in social dialogue are available on SAK’s working life page.
The Finnish trade union confederations have representatives in the European Economic and Social Committee and the Advisory Committee on Health and Safety at Work. The European Economic and Social Committee advises EU policymakers in matters such as working life. The Advisory Committee on Health and Safety at Work has influence in the EU’s legislative work.
FinUnions represents Finnish employees and trade unions in the EU
SAK and STTK have a joint representative body in Brussels, FinUnions. FinUnions is tasked with safeguarding the interests of Finnish employees and informing Finnish organisations about the activities and decisions of the EU.
FinUnions keeps an eye on labour market issues in EU institutions in cooperation with the confederations and trade unions representing Finnish employees. FinUnions also cooperates with the European labour movement umbrella organisation ETUC.
The International Labour Organisation ILO
The International Labour Organisation ILO promotes social fairness and human rights in labour and improves the position and working conditions of employees all over the world. It also develops international labour standards.
ILO is the only tripartite organisation of the United Nations (UN). In addition to the governments of the UN members, representatives of employees and employers from different countries take part in ILO’s decision-making. Finland is one of the member states of ILO.
ILO’s agreements and recommendations form a set of international labour standards. This means they are the baseline for all labour legislation in Finland as well. ILO has approved a total of around 400 agreements and recommendations. Finland has adopted or ratified around 100 of these agreements. ILO’s agreements have had a significant impact on Finnish labour legislation.
ILO has defined a set of fundamental labour rights that form the basis of international standards of working life. These fundamental rights are the freedom of association, the elimination of forced labour, the abolition of child labour, and the elimination of discrimination.
Are you interested in participating in international policymaking?
You can influence labour and human rights worldwide. We can all exert influence in social media and various networks, and participate in projects and events together with non-governmental organisations.
The Trade Union Solidarity Centre of Finland SASK
You can also effect change via the The Trade Union Solidarity Centre of Finland SASK. SASK is a development cooperation organisation of Finnish trade unions. It contributes to the improvement of human rights globally and to reducing poverty, child labour, forced labour, and other labour related issues. The aim of SASK’s work is to ensure a sufficient income for everyone.
SASK cooperates with trade unions in various countries in Africa, Asia and Latin America. SASK supports and promotes trade unions in different countries so that they can improve the status of their members.
Finnish trade unions – possibly your trade union as well – support the work of SASK. SASK’s operations can be supported and participated in by everyone interested in human rights and the opportunity to effect change. For example, you can join SASK as a support member (in Finnish) or learn more about SASK’s work as a SASK ambassador (in Finnish).

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