Mikko Kiesiläinen (Greens), the managing director at Libera Foundation, says the European Commission has decided to consider a complaint filed by the market-liberal think tank against the universally binding nature of collective bargaining agreements in Finland.
Libera: EU Commission to consider complaint against binding nature of Finnish CBAs
“The way that collective bargaining agreements are universally binding in Finland violates the rules of the European Single Market,” he argues in a press release.
Kiesiläinen reminds that collective bargaining agreements can be universally binding without violating the rules, as evidenced by Norway. In Finland, however, the binding nature of the agreements has been used wrongfully to restrict competition.
“Organised employers can stipulate that local bargaining applies only to organised companies, making it possible for members of employer organisations to operate in a cartel-like fashion,” he explains.
Kiesiläinen pointed out earlier this autumn that labour market organisations in a number of sectors have decided that the right to local bargaining can be taken fully advantage of only at organised workplaces.
“This means that non-organised workplaces may not even be able to agree on the length of the lunch break,” he said.
Libera Foundation adds that the universally binding nature of collective bargaining agreements is also discriminatory against foreign companies eager to expand to Finland.
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