Finland: Industrial relations

Original and updating author: Teea Kemppinen, Bird & Bird Attorneys Ltd

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Summary

• The Constitution guarantees freedom of association, and employees have the right to form, join - or not join - and participate in the activity of trade unions. (See Trade unions and recognition)
• Collective agreement coverage is high, at some 90% of the workforce, and collective bargaining therefore plays a key role in setting terms and conditions of employment across much of the economy. (See Collective bargaining and agreements)
• Employers that regularly employ at least 50 employees are fully subject to statutory "cooperation" obligations (including regular dialogue and change negotiations). Employers that regularly employ 20 to 49 employees remain subject to certain cooperation obligations (eg, provisions on transfers/mergers/divisions and some limited change negotiation obligations). (See Informing and consulting employees - general). 
• Employers covered by co-operation rules must hold change negotiations before certain redundancy, lay-off, part-time conversion or operational change decisions, with the scope, procedure and minimum negotiation periods depending mainly on workforce size and the number and type of employees affected. (See Informing and consulting in change negotiations)
• In the event of the planned transfer of a business or part thereof, the old employer and the new employer must, if they employ 20 or more employees, provide information to the representatives of the personnel groups affected by the transfer. (See Informing and consulting prior to transfers)
• "Community-scale" undertakings and groups of undertakings with headquarters in Finland must, at the written request of at least 100 employees or their representatives from at least two member states, establish a body to negotiate with central management over the establishment of a European Works Council or an information and consultation procedure. (See European Works Councils)
• While a collective agreement is in force, the signatory employers, employers' associations and trade unions are obliged to maintain "industrial peace". (See Industrial action)
• In companies with a workforce of 150 or more, employees are entitled to board-level employee representation under the Co-operation Act. (See Board-level employee representation)