Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

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

The Committee notes the observations of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA) and the Finnish Confederation of Professionals (STTK) (hereinafter referred to as “the trade unions”), and of the Federation of Finnish Enterprises (SY), the Confederation of Finnish Industries (EK) and the Local Government and County Employers (KT), attached to the Government’s report.

Articles 1–3 of the Convention. Gender pay gap. Scope of comparison. The Committee notes the Government’s acknowledgement, in its report, that the gender pay gap has decreased very slowly, from 17.2 per cent in 2010, to 16.8 per cent in 2015 to 15.8 per cent in 2020. The Government explains that equal pay is promoted through legislation, the tripartite Equal Pay Programme (2020–23) and government research and development projects. It recognizes that previous Equal Pay Programmes (2007–10, 2010–15 and 2016–19) have not been very successful in reaching their main goal. The current Programme (2020–23) promotes gender impact assessments of collective agreements and pay systems that support equal pay and pay awareness, supports the reconciliation of work and family life and dismantles the gendered segregation of the labour market. The Committee notes that, on 1 September 2022, the Ministry of Social Affairs and Health launched an overall assessment of the equal pay measures introduced, including the tripartite Equal Pay Programme 2020–23. It also notes the Government’s statement that one solution it is currently exploring is pay transparency. A tripartite working group, appointed under the auspices of the Ministry of Social Affairs and Health, prepared amendments to the Act on Equality between Women and Men in order to increase pay transparency in all sectors, the objective being to prevent gender-based pay discrimination and to promote equal pay. The Government indicates that, unfortunately, this process was interrupted due to diverging views on the proposal among government parties. It refers to ongoing initiatives on pay transparency at the European Union level. It also points out that the most challenging obstacle in combating the gender pay gap is the gender segregation of the labour market: in 2019, the proportion of workers in “even occupations” (meaning occupations with 40 to 59 per cent male or female wage earners) was only 10.1 per cent (it was 13.1 per cent in 2010). It cites two projects on the subject: (i) “Dismantling segregation – Tools for a more equal working life (2021–2023)”, in the context of which a policy brief and toolbox for decision-makers on the more permanent methods of dismantling occupational segregation will be prepared; and (ii) “Working careers and occupational segregation behind the gender pay gap (2022–2024)”, a research project which aims to map differences in careers and career paths and their effect on pay differences, with a view to laying the foundation for developing careers and occupational structures on a more equal basis. The Committee notes the Government’s indication that there is considerable variation in the scope and quality of equality plans and pay surveys carried out in the public and private sectors. In most cases, comparisons are made between employees doing the same work. Comparisons between employees covered by different collective agreements are rare. The Committee also notes the Government’s indication that an extensive research and development project, entitled “Work of Equal Value 2021–2022” is being carried out, which examines “how the assessment of demands of the work should be standardized between the different sectors and occupations”, so as to better recognize the demands of female-dominated sectors and occupations, with a view to developing payroll systems that could better support equal pay for work of equal value.

The Committee notes that, in their observations, the social partners all agree that gender segregation of the Finnish labour market is a serious issue and mention the unequal uptake of family leave as a reason for the gender pay gap. The trade unions deeply regret the suspension of the process towards amending the Act on Equality between Women and Men and consider that increasing wage transparency and improving access to pay information in cases of suspected discrimination would help to ensure pay equity. SY considers that the main reasons for the gender wage gap are the fact that women and men work in different industries and that the annual working hours of men are higher than those of women; and it is of the view that the gap can only be reduced by influencing educational choices and attitudes. EK considers that pay discrimination is not a significant problem in Finland and that the principle of “equal pay (equal pay for equal work)” is well implemented. According to EK, the issue of the pay gap is different from the principle of equal pay or pay discrimination and increasing pay transparency or pay openness would have no effect on promoting equal pay; it is rather necessary “to increase the attractiveness of different sectors and improve the position of women in the labour market, [and to ensure] a more even distribution of family leave and adequate day care services for children”.

The Committee notes that, in its concluding observations, the United Nations Committee on Economic, Social and Cultural Rights noted that the implementation of the Equal Pay Programme without binding measures would not significantly accelerate the reduction of the gender wage gap. It recommended that the Government establish time-bound targets for closing the gender pay gap and legislate on remuneration transparency, with a view to making it easier to challenge unequal pay (E/C.12/FIN/CO/7, 30 March 2021, paragraphs 20–21). The Committee also notes that according to the national Action Plan for Gender Equality 2020–23: (i) the gender pay gap will be narrowed during that period by increasing pay transparency through legislation, by Government-led research and development projects and by joint efforts undertaken by the Government and the labour market organizations; and (b) Finland is in favour of promoting equal pay by increasing pay transparency through EU legislation and considers it important to clarify the concept of “equal pay for work of equal value”.

Regarding the gender segregation of the labour market, the Committee refers to its comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). As for the gender pay gap and the scope of comparison taken into account, the Committee notes that the principle of equal remuneration for work of equal value seems to be understood and applied in a very narrow way in the labour market in Finland. It wishes to reiterate that comparing the relative value of jobs in occupations which may involve different types of skills, responsibilities, efforts or working conditions, but which are nevertheless of equal value overall, is essential in order to eliminate pay discrimination resulting from the failure to recognize the value of work performed by women and men free from gender bias (see the 2012 General Survey on the fundamental Conventions, paragraph 675). In order to address gender pay discrimination in a gender-segregated labour market where women and men are concentrated in different trades, industries and sectors, the reach of comparison between jobs performed by women and men should be as wide as possible, extending beyond occupational categories, collective agreements and enterprises. The Committee encourages the Government to take steps towards clarifying the meaning of “equal remuneration for work of equal value” and ensuring that a wide scope of comparison is being applied in all activities which affect the application of the principle of equal remuneration for men and women for work of equal value, including equal pay surveys. It also asks the Government to provide information on whether and how it assesses the “equal value” of public employment jobs. The Committee requests the Government to continue providing information on the evolution of the gender pay gap and any measures aimed at its reduction, especially how the issue of occupational gender segregation is being addressed. It also asks the Government to provide information on the results of the overall assessment of the equal pay measures launched by the Ministry of Social Affairs and Health on 1 September 2022, as well as on the concrete outputs produced by the following projects: “Work of Equal Value 2021–2022”, “Dismantling segregation – Tools for a more equal working life (2021–2023)”, and “Working careers and occupational segregation behind the gender pay gap (2022–2024)”.

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