STTK: Implementation of the minimum wage directive gives a false impression of the situation in Finland

This year, a tripartite working group has prepared the national implementation of the directive of the European Parliament and of the Council on adequate minimum wages. The directive was to be implemented nationally by 15 November.

Based on the working group’s memorandum, no legal amendments are required in Finland to implement the directive. Central employee confederations presented a dissenting opinion on the memorandum.

According to the Finnish Confederation of Professionals (STTK), the minimum wage directive was not implemented appropriately.

“At the same time with the implementation of the directive, national legal measures that place the directive’s objectives at significant risk were taken. Still, the implementation memorandum does not describe any projects included in the Programme of Petteri Orpo’s Government that weaken employees’ position and trade unions’ negotiating powers,” says lawyer Sanna Rantala.

STTK emphasises that the projects have been underway during the implementation of the directive, and some of them have already been enforced. As a result, the memorandum gives a false impression of the situation in Finland.

“According to the established interpretation of EU law, no legislation that places an EU directive’s objectives at significant risk can be issued during the national implementation of the directive. The Finnish Government’s activities are in apparent conflict with this policy,” Rantala says.

The original purpose and objective of the directive is to reduce poverty among employees, guarantee adequate minimum wages and promote collective bargaining.

“In Finland, the negotiating system is being crumbled by projects under the Government Programme such as expanding local bargaining to be generally binding. Legal amendments to local bargaining reduce the coverage of collective agreements, not increase it as required by the directive. Furthermore, restricted secondary action, higher compensatory fines and the inclusion of the export policy in legislation significantly reduce the negotiating powers of employee confederations,” Sanna Rantala says.

Further information at STTK: Sanna Rantala, +358 40 646 9864