Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

Employment Policy Convention, 1964 (No. 122) - Finland (Ratification: 1968)

The Committee notes the information contained in the Government’s report received in October 2007, the attached documents and the information sent in reply to the observation of 2006. It also notes the comments from the Central Organization of Finnish Trade Unions (SAK).

1. Articles 1 and 2 of the Convention. Active employment policy measures. In reply to the observation of 2006, the Government indicates that thanks to the five-year National Programme for Older Workers, the employment rate for this category has increased to reach the level that existed before the economic recession of the 1990s. According to the data published in the OECD Factbook 2008, the employment rate for the 55–64 age group was 54.5 per cent in 2006. The proportion of persons who took early retirement also decreased. The Government thinks that the National Programme for Older Workers has proved effective in responding to the problems of availability of the workforce arising from demographic changes. According to a report published by the Finnish Central Pensions Office in April 2008, the average actual age for retirement increased from 59.1 years in 2005 to 59.5 years in 2007. The Veto National Programme, which began in 2003 and is intended to motivate older workers to continue working for an additional two or three years, also continued during the period covered by the report. However, during the period examined, the employment situation for young people did not improve; in 2006, the unemployment rate for young people under 25 years of age was more than two times greater than that of the working population as a whole (18.8 and 7.7 per cent, respectively, according to OECD statistics). The Government points out that, in the context of the reform of the mode of operation of employment offices carried out between 2004 and 2006 as part of the reform of public employment services, 44 job centres have been created to assist jobseekers. The Committee invites the Government to continue to supply information on the effects of measures intended to improve job opportunities for older workers who wish to remain in the labour market. It requests the Government to include in its report information on the way in which recently adopted measures to combat youth unemployment have increased opportunities for lasting employment for young people entering working life. It also requests the Government to continue to supply information on the effects of the reform of public employment services on the pursuit of the objectives of the Convention.

2. Measures in favour of workers affected by change in the enterprise. The Committee notes the adoption, on 30 March 2007, of the Act on Cooperation with Enterprises with the objective of supporting employment in the event of change in the operations of the enterprise. Apart from timely communication on the current situation and future projects of the enterprise, the Act also provides for measures enabling employees to be consulted on decisions concerning their work and their position in the enterprise. Furthermore, the Act of 1 July 2005 on Change Security also aims to improve the situation of workers facing dismissal or dismissed for economic or production-related reasons. The Committee would like to receive information on the experience of the social partners with regard to the impact on job creation of measures taken in favour of workers affected by changes in enterprises.

3. Training policies. The Government indicates that, in 2006, 69,000 persons commenced training in the form either of advanced vocational training or as a diploma course in vocational training. In accordance with the Finnish Government’s programme announced on 15 April 2007, resources will be allocated to increase the volume of vocational training dispensed in partnership with private enterprises and also for subsidized employment within them. The Committee asks the Government to indicate in its next report the results in terms of employment of the training dispensed jointly with private enterprises.

4. Article 3. Participation of the social partners. The Committee notes the comments formulated by the SAK, which expresses satisfaction at the reforms implemented, and notices that unemployment has decreased, even among older workers and the long-term unemployed. However, the SAK fears that the possibilities for long-term jobseekers to find work might suffer from the fact that the Government is orienting its employment policy towards greater cooperation with private enterprises. Furthermore, the SAK considers that linking employment policy resources to changes in the employment situation will lead to those resources being reduced and to a deterioration in the structure of unemployment. The SAK notes that, during the previous Government, employment measures were drawn up in cooperation between labour market organizations and the Government. Moreover, the SAK indicates that the new Government has declared in its programme that measures such as protection in the case of change, employment insurance and reforms relating to adult education will be drawn up in collaboration with labour market organizations. The Government, for its part, states that labour market organizations have actively participated in the drawing up of the Act on Change Security. In this regard, the Committee would be grateful if the Government would continue to supply information on the way in which account is taken of the opinions of employers’ and workers’ representatives and other stakeholders in the preparation, application and revision of employment policies and programmes.