New Government Bill Proposal on Enhanced Local Bargaining

The Finnish Government has proposed significant changes to labour legislation that are aimed at enhancing local bargaining opportunities at workplaces. If enacted, these changes will make local bargaining notably more accessible and effective for both organised and non-organised employers. The changes are set to take effect on 1 January 2025. All employers should be aware of these changes to leverage new local bargaining opportunities.

The proposed legislation will give workplaces broader possibilities to negotiate their own company-specific collective agreements by removing restrictions that have so far limited company-level local bargaining to the national level for unions.

Due to the legislative changes, workplaces will have broader autonomy to negotiate terms that best suit and balance their operational needs and employees’ preferences, potentially leading to more efficient and harmonious workplace relations.

Non-unionised workplaces will be able to apply the provisions established in generally binding collective agreements for local bargaining, creating a level playing field with unionised workplaces in that regard. The change will make it possible for non-organised workplaces to agree, for example, on more flexible arrangements for working hours and annual leave.

Under the current legislation, local bargaining has typically required the presence of an elected union-linked shop steward. After the changes, the lack of a shop steward does not prevent local bargaining, and local agreements can be made with other employee representatives as well, ensuring more workplaces can engage in local bargaining going forward.

This change is particularly significant for smaller companies or those with less formal union and/or employee representation structures as it provides a clearer pathway for local bargaining that is not feasible under current legislation.

All employers should prepare themselves for the upcoming changes by reviewing their current local agreements and bargaining practices. Employers should also think about how the new local bargaining options can be used to make their workplaces more flexible and efficient. It is essential to understand the new legal framework and how it can be best applied in each workplace’s specific circumstances.

Borenius offers comprehensive services to assist in navigating these legislative changes, ensuring that your organisation remains compliant and can make the best of the new bargaining opportunities.

For more detailed advice and support on how these changes may affect your business, please contact our labour law experts at Borenius. We are here to help you understand the implications of the new legislation and develop strategies that align with your business goals.