Renewing labour market

The Finnish labour market system has fallen behind compared to the competing countries. In order for the industry to keep employing and provide export revenues essential for the welfare state, the labour market system is expected to reform to meet the demands of global competition.

Finland must be able to provide companies with circumstances that facilitate the move to the global markets. This means that taxation, legislation, funding, and the level of work force expenses encourage companies to grow, employ, and try harder than ever.

The goals of the renewal of the labour market system are:

  • Employment terms and conditions are made at workplaces where the tasks and duties are known best.
  • An encouraging salary system: instead of across-the-board pay increases, the pay is determined by the level of challenge of the work, the employee's competences, and the results.
  • The basis of work time arrangements should be the demand and customers' needs: more work is done when there's a shortage of time and holiday takes place at a quieter period.

An undisrupted labour market is part of competitiveness. Compared to the key competitors, Germany and Sweden, Finland is a strike-prone country. Illegal industrial action in particular causes companies significant damage in relation to the consequent penalties.