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

Equal Remuneration Convention, 1951 (No. 100) - Finland (Ratification: 1963)

The Committee notes the Government’s report and the comments of the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Professionals (STTK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Confederation of Finnish Industries (EK), the Commission for Local Authority Employers, and the State Employer’s Office (VTML), included therein.

Assessment of the gender pay gap. The Committee notes from the Government’s report that between June 2005 and May 2007, the gender pay gap calculated on the basis of average monthly earnings (regular monthly working hours) has remained unchanged at 20 per cent. According to Eurostat, there has also been a 20 per cent gap between men’s and women’s average gross hourly earnings since 2002. SAK expressed concern that pay differentials have increased in certain sectors. The Committee previously noted that the equal pay programme, which was adopted based on recommendations made by a tripartite working group in 2005, aims at closing the current gender pay gap (average monthly earnings) by at least 5 per cent by 2015. The programme addresses the gender pay gap through various measures regarding pay systems, occupational segregation based on sex, equality planning, reconciliation of work and family life and corporate social responsibility. The Committee also notes the concerns expressed by some trade unions over delays in the programme’s implementation. The Committee asks the Government to provide detailed information on the implementation of the measures envisaged under the equal pay programme and to continue to provide detailed statistical information that will allow the Committee to assess the progress made in closing the gender pay gap.

Article 2 of the Convention. Application in practice. Equality plans. The Committee notes that according to a survey carried out by SAK, only 35 per cent of the enterprises surveyed had undertaken a pay survey as required under the Act on Equality between Men and Women. EK indicated that by autumn 2006, some pay surveys had been conducted by a majority of their members. According to SAK and AKAVA the legislation was not sufficiently clear as to how these surveys should be conducted and how work of equal value should be determined, particularly in cases where employees of the same employer were employed under different collective agreements or pay systems. STTK states similarly that equal pay could not be realized unless equally demanding jobs and their remuneration can be compared across collective agreements. SAK and AKAVA stress that access to the necessary pay information was unsatisfactory. According to EK, pay surveys were carried out using existing personnel or task-related classifications and no major difficulties were reported, while according to the Ombudsperson, data protection issues may be an obstacle. EK considered that equal pay is best promoted through up to date and fair pay systems.

In its report, the Government states that following the entry into force of the amendments to the Act that introduced pay surveys in the context of the adoption and implementation of equality plans, the Ombudsperson focused on the provision of information, advice and training. In 2006, the Ombudsperson began consultations with labour market organizations in order to address practical problems and difficulties in equality planning, and particularly as regards pay surveys. When workplaces had included concrete objectives concerning the removal of gender pay differentials in equality plans, it was found that there was more likelihood of progress. The Committee welcomes the efforts made by the Government and the social partners to promote equal remuneration for men and women for work of equal value through pay surveys under the Act on Equality between Men and Women, and asks the Government to continue to provide information on the implementation of pay surveys and their actual impact on reducing gender pay differentials, as well as on the measures taken to ensure that all workplaces required to undertake such surveys under the Act comply with their obligations. The Committee also asks the Government to provide further information on the measures taken to:

(i)    promote participation of employees and their organizations in equality plans and pay surveys;

(ii)   ensure appropriate access to pay data with a view to identifying discriminatory gender pay differentials; and

(iii) ensure that for the purpose of ensuring equal remuneration for work of equal value, jobs performed by men and women can be compared on the broadest possible basis, including comparison across different collective agreements.

Collective agreements. The Committee notes that SAK considers collective bargaining significant for addressing gender pay differentials, including through centralized collective bargaining and equality increments. According to STTK, the Government is committed to making additional contributions towards pay increases in public sector fields dominated by women. The Committee further notes STTK’s comment that the new collective agreement for the finance industry (2007–11) was an example of a collective agreement addressing equal pay concerns. The agreement includes a “salary discussion model” under which salary increases are partially performance based. The agreement also provides for increased information on salaries and job difficulty evaluation. Finally, the Committee notes that the memorandum adopted by the central labour market organizations in the framework of the round table on equality recommends that all parties to collective agreements assess, as and when necessary, how their agreements have impacted in differences in pay between women and men. The Committee looks forward to receiving information on the measures to implement this recommendation, and requests further information and examples on how collective agreements are being used to promote equal remuneration for men and women for work of equal value.

The Committee is raising other points in a request addressed directly to the Government.