SAK Immigration Policy Objectives

1·2011

SAK Immigration
Policy Objectives

SAK Immigration Policy Objectives 1

1 INTRODUCTION ................................................................................................... 2
Human mobility is part of economic globalisation .................................................... 2
Few foreigners live in Finland .................................................................................. 3
Immigrant unemployment is nearly three times the national average ...................... 4
Equal numbers of immigrants and temporary foreign workers in Finland ................ 4

2 WE ARE ALL ENTITLED TO DIVERSITY AND FAIR TREATMENT AT
WORK ...................................................................................................................... 6

3 A MANAGED IMMIGRATION POLICY IS BASED ON THE NEED FOR
LABOUR .................................................................................................................. 7

4 TWO LABOUR MARKETS: AN UNACCEPTABLE OPTION .............................. 9
Employers accountable for infringing laws and collective agreements .................. 10
Social security for all .............................................................................................. 10
Meaningful subscriber liability for infringements by subcontractors and
agencies ................................................................................................................. 11
Improved rights for trade unions to supervise terms and conditions of
employment............................................................................................................ 12
Greater resources and duties for public authorities ............................................... 12
Finland must respect the status of migrant workers ............................................... 13
Integration measures for all immigrants ................................................................. 15
More and better language training ......................................................................... 15
Swifter recognition of qualifications ........................................................................ 16
An adequate labour market information pack for immigrants ................................. 16
Allowing for the needs of immigrant families .......................................................... 16
APPENDIX 1 Foreign population of Finland by nationality, native
language and country of birth ................................................................................. 18
APPENDIX 2 The work of SAK to promote multiculturalism and equality at
the workplace ......................................................................................................... 19
APPENDIX 3 Social security of foreign workers in Finland ................................... 22

2 SAK Immigration Policy Objectives

1 INTRODUCTION
Immigration and multiculturalism have been topics of considerable public
debate recently in Finland. Discussion has focused on immigrant
integration, the rights of refugees and asylum-seekers, immigration for
employment, and whether there is any need for more foreign labour. SAK is
part of the labour movement, so this policy statement and its
recommendations will deal only with the world of work.

Solidarity, equality and fairness are fundamental values of the trade union
movement. People should not be treated inequitably because of their native
language, skin colour or origin. Everyone is entitled to equitable treatment
regardless of nationality and ethnic extraction, and racism is unacceptable
in any form.

A responsible immigration policy will ensure that society and the world of
work remain capable of ensuring the effective integration and employment
of immigrants. Immigrant integration has to be an interactive process that
allows for the needs of the individual. A responsible policy will also entail
managed immigration of migrant workers based on a real need for labour.

SAK stresses that everyone working in Finland should have equitable terms
and conditions of employment. Employers are responsible for ensuring that
the collectively agreed rates are paid for work done in Finland and that this
work complies with Finnish terms and conditions. Enterprises that use
subcontractors and employment agencies must also be responsible for
ensuring that these business partners comply with legislation and provide
proper jobs for their employees.

Human mobility is part of economic globalisation

People have always migrated from place to place and country to country.
Modern migration flows are linked to globalisation and the gulf in living
standards between the wealthy industrialised countries and the developing
world. The character of migration has also changed, with technological
progress enabling greater mobility and faster communications.

To many people in the developing world, the wealthier countries offer a
valuable opportunity for higher income. Many people in the destination
countries for migration flows feel in turn that migration offers one solution to
the labour shortage caused by an ageing population. Immigrants and
migrant workers already form an essential component of the labour force in
many countries. The increased cultural interaction accompanying
international mobility is also a value in itself.

The benefits of migration are offset by a downside in the form of human
exploitation. The jobs that foreigners find are often poorly paid and
insecure. Cheap labour can force decent jobs out of the market, thereby
impairing the rights and purchasing power of all employees. Developing
countries also increasingly suffer from a brain drain leading to problems
such as poor and inadequate public health services and education. It is


important to give more careful consideration to the ethical aspects of hiring
labour from developing countries.

The European Union has guaranteed free mobility of services and freedom
of business establishment within its territory. Since the 1990s the EU and
its Member States have worked hard to promote labour mobility in the
internal market. The Posted Workers Act1 stipulates the minimum terms
and conditions of employment of employees working temporarily in Finland
for a foreign employer or of agency workers hired to work for a Finnish
client in Finland. Both the Council and Parliament of the European Union
are currently processing proposed Directives stipulating the rights of
employees from outside of the EU/EEA countries. This also testifies to the
growing interest of the EU and its Member States in labour from beyond
their borders.

The labour market in many European countries is broadly split into two
sectors, with immigrants often over-represented in jobs with minimal rights
and security. Nearly everywhere the trade union movement has been
engaged in a struggle to achieve equitable treatment of employees and to
oppose the exploitation of immigrants through deteriorating terms and
conditions of employment. Finland is no exception to this.

Few foreigners live in Finland

Finland has historically served mainly as a point of departure for migrants,
and only became a significant destination for immigrants in the early 1990s.
By the end of 2009 there were about 155,000 foreigners living in Finland,
corresponding to just under three per cent of the country’s total population
(Appendix 1: Foreign population of Finland by nationality, native language
and country of birth). This figure gives the number of people without Finnish
citizenship living permanently in Finland, and does not include naturalised
immigrants, foreigners working in Finland on a temporary basis or asylum-
seekers. There are relatively few foreigners living in Finland compared to
other countries in Western Europe.

Nearly 65 per cent of Finland’s foreigners live in the country’s ten largest
cities, with most of them based in Helsinki. Nearly one in ten Helsinki
residents speak a native language other than Finnish or Swedish –
principally Russian, Estonian, English and Somali.

The background of immigrants living in Finland varies by nationality and
citizenship, country of birth, language, education and grounds for admission
to the country. There is no uniform immigrant population, nor are the same
immigration measures and services suited to all. Foreigners can
nevertheless be sorted according to grounds for admission2 into the
spouses of Finnish citizens, students, migrant workers, refugees admitted
under the UNHCR resettlement programme, spontaneous refugees and
other displaced persons, immigrants admitted for family reunification, and
returnees of Finnish extraction. The most popular reason for moving to

1
Laki lähetetyistä työntekijöistä, no. 1146 of 1999.
2
This more strictly refers to the grounds for granting permission to arrive and remain. The categories in
the list are not mutually exclusive.


Finland remains the choice of spouses concerning their common country of
residence. Most immigrants are from Russia, Estonia and Sweden.

Immigrant unemployment is nearly three times the national
average

The age distribution of immigrants living in Finland differs from that of non-
immigrant Finland. About 80 per cent of immigrants are of working age,
compared to only 66 per cent of the original population. The employment
rate of immigrants in 2009 was nevertheless only 52 per cent (65,000
people), whereas the corresponding employment rate of the original
population approached 70 per cent. Immigrant unemployment is nearly
three times the national average. There are also major disparities between
the employment rates of various immigrant groups sorted by nationality.
Immigrants from the industrialised countries enjoy relatively high
employment levels, whereas the labour market looks less kindly on
humanitarian migrants.

The employment of most immigrants tends to be insecure. Regardless of
education, immigrants are often employed in service sectors, especially as
cleaners and restaurant workers. There are also many employees of
immigrant background engaged in transport, logistics and warehousing
work. Some are employed in the financial and insurance sectors. Finland
has also attracted highly trained foreign experts, such as IT-specialists,
scientists, teachers and medical practitioners.

Equal numbers of immigrants and temporary foreign workers in
Finland

Even though many public authorities compile statistics on foreign workers,
no precise figures are available on the number of foreigners working in
Finland on a permanent or temporary basis. Very little is known, in
particular, of the number of temporary workers from the EU/EEA zone.

The most accurate figures for foreign workers concern permit holders from
outside of this zone. Just under 5,500 residence permits were issued to
these “third country nationals” for the purpose of employment in 2009. Most
of these permits went to cooks, chefs, cold buffet chefs, gardeners,
cleaners, agricultural workers, plumbers, heavy goods and combination
vehicle drivers, and welders. The most common nationalities of permit
applicants were Russian, Ukrainian, Chinese, Turkish, Croatian, Thai and
Filipino.

A combination of official statistics, academic studies and research by labour
market organisations suggests that roughly 57,500–67,500 foreigners were
working in Finland on a temporary basis in 2009. This is about the same as
the number of immigrants in work.

Temporary employees divide into seasonal workers and posted or agency
workers, most of whom come to Finland from other European Union
Member States. There were about 40 to 50 thousand workers of this kind in
2009, with a further 12,000 employees on visitor visas working in seasonal


jobs lasting for less than three months. Seasonal workers come to Finland
both from neighbouring regions and from the Far East. Some work is also
commissioned from foreign workers on a basis other than employment.
There are no reliable figures indicating the scale of this kind of work.

The Finnish Construction Trade Union has estimated that about 20 to 25
thousand foreigners worked in the building sector in 2009. According to a
major study made by the union in spring 2010, Finnish construction workers
are already clearly a minority of the building façade renovation workforce in
Helsinki, for example. Most of the foreign labour working in the construction
industry comes from Estonia, with the remainder coming mainly from such
countries as Poland, Ukraine and Russia.

Large numbers of temporary workers are also hired from abroad to work on
farms and in market gardening businesses. The latest statistics in this field
date from 2007, when more than two thousand agricultural and market
gardening enterprises employed some 14,700 foreign workers.

Table 1 Workers of foreign origin in Finland in 2009

Workers of foreign origin
about 122,500–132,500

↓ ↓

Temporary foreign workers Foreigners permanently
about 57,500–67,500 domiciled in Finland
and in work 65,000

↓ ↓

From EU countries • Permit holders
about 40,000–50,000 from third countries
about 5,500

• Seasonal workers
about 12,000
(from EU and third
countries)


2 WE ARE ALL ENTITLED TO DIVERSITY AND
FAIR TREATMENT AT WORK
Solidarity, equality and fairness are fundamental values of the trade union
movement. Everyone is entitled to equitable treatment regardless of
nationality and ethnic extraction. Attitudes critical of immigration and even
racism have gained considerable ground in public debate. This way of
talking encourages suspicion and even hatred of immigrants, and can have
destructive social consequences. It is important to ensure that xenophobia
is not permitted to gain a foothold in Finland and that we avoid antagonism.

Joint measures taken by labour market organisations are crucial for
preventing ethnic harassment and discrimination against immigrants and
ethnic minorities at work. SAK joined Finland’s other national labour and
employer confederations in signing a declaration in 1995 to combat racial
discrimination and xenophobia, and to promote equal opportunities at the
workplace.

SAK has worked to promote immigrant and multicultural affairs in many
ways throughout the first decade of the new century. The concluding
document of the organisation’s 2001 congress Moving into the future takes
a strong stand for equality, fairness and tolerance. SAK believes that
diversity is a resource, not a threat. A globalising and equitable world of
work is an opportunity for Finnish society. Immigrants must have the same
opportunities as the original population to participate in the world of work
and the trade union movement, but the immigrant organising rate is
currently lower than the rate for Finnish employees. By spring 2010 there
were nevertheless already more than 17,000 members of immigrant
background in SAK-affiliated trade unions.

A multiculturalism group was established at SAK and its affiliates in 2002 to
function as a discussion forum that gathers and provides information and
maintains contacts with organisations of immigrants. This group also serves
as a lobbying network and investigates service requirements. SAK also
arranges forums for immigrant union members enabling them to meet one
another and other organisation activists, and to highlight problems that
arise at work and in society more generally.

SAK has recently been focusing on improving equal opportunities for
employees by lobbying for improved legislation, and the organisation is also
involved in various associated projects. The Baltic Sea Labour Network
(BSLN) initiative running until the end of 2011 seeks to prevent the unfair
exploitation of labour in the Baltic Sea region, to encourage immigrants to
join trade unions, to call greater public attention to the challenges of labour
mobility, and to lobby for better management of international labour flows.

SAK has worked through the BSLN project to promote multiculturalism and
equal opportunities. Further details of the project are provided in Appendix
2. The BSLN initiative has included projects to investigate diversity in the
world of work, and has strengthened the role of an information centre in
Tallinn, Estonia, that furnishes Estonian migrant workers with details of
working in Finland, labour rights and the trade union movement.


Many trade unions have also produced their own brochures and other
materials in various languages to explain typical features of working in
Finland and the rights of employees.

3 A MANAGED IMMIGRATION POLICY IS BASED
ON THE NEED FOR LABOUR
Most sectors of the Finnish economy have enough labour for their needs. It
has been observed that foreign labour is often hired in the industries
organised by SAK more because of poor terms and conditions of
employment or a desire to cut business labour costs than because of a
genuine labour shortage. Exercising judgement over the availability of
labour safeguards the employment of workers who are already in the
Finnish labour market and ensures that employees are hired from third
countries on fair and decent terms. This discretion will continue to be
necessary for as long as pro-active and retroactive supervision of terms
and conditions of employment remains inadequate and the employment
situation is unfavourable.

Despite the general employment situation, however, Finland can suffer
localised labour shortages in particular industries or specific enterprises.
Hiring employees from abroad may be one solution to the problems of
enterprises and industries where a labour shortage hampers operations or
prevents growth. To avoid labour shortages, it is also important to forecast
labour requirements with optimal precision and to train employees for work
in industries that are threatened by labour shortages. If insufficient labour is
available for hire in Finland, then a realistic estimate of the short and long-
term need for foreign labour is required. This is the only way of arranging a
systematic, managed policy of immigration for employment that is based on
real need.

Current statistics and studies are not accurate enough. Estimates of the
need for labour from abroad are too often based solely on the rate of
retirement and job vacancies. Much more government research is required
to forecast foreign labour requirements by industry, with detailed research
conducted into the terms and conditions of employment actually enjoyed by
foreign workers and the pay criteria applied by employers. Statistics on
employees arriving from other European Union Member States should be
improved in particular in order to ascertain the number of employees
concerned, the industries in which they work and the duration of their stay
in Finland.

SAK feels that all businesses should comply with OECD guidelines for
multinational companies, which emphasise that an enterprise should
primarily hire local staff. Any foreign workers who are required should
primarily be hired as direct employees and not through agencies.

Employers hiring from abroad must be liable for ensuring that the worker
receives adequate pre-departure information on the job that has been
offered and the associated duties, on the required language skills and
vocational qualifications, on the terms and conditions of employment and
the rights and duties of employees, on trade union activities, and on Finnish


society. Any direct or indirect collection of recruitment fees from such
workers must be outlawed.

Labour recruitment should become a focus of official control, and
employers must provide the necessary support and protection to
employees if evidence of migrant labour abuse emerges, such as enticing
workers to Finland with misleading promises. Steps must also be taken
against the perpetrators of such practices, for example, by blacklisting
them.

Recruitment of workers from abroad must be ethically sustainable. Finland
must not export its potential labour shortages to developing countries, nor
should labour migration undermine public services in countries of origin or
skew their educational systems to serve the needs of industrialised
countries for trained professionals at the expense of the developing world.

A successful labour immigration policy will require a partnership between
both sides of industry, and the involvement of both sides in formulating,
monitoring and evaluating public policy and legislation. There should also
be greater national and international collaboration between various public
authorities and labour market organisations in matters of labour
immigration.

SAK RECOMMENDS:

• Discretion over the availability of labour should continue for as long
as pro-active and retroactive supervision of terms and conditions of
employment remains inadequate and the employment situation is
unfavourable.

• The pay criteria of employers hiring workers from abroad and the
terms and conditions of employment of these workers must be
investigated.

• Statistics on immigration and labour mobility must be improved,
particularly with respect to temporary labour arriving in Finland from
other European Union Member States.

• Recruitment of labour from abroad should be subject to regulatory
control by public authorities. Self-regulation by enterprises does not
suffice.

• Recruitment must be conducted in an ethical manner, and
employers must provide the necessary support and protection to
employees if evidence of migrant labour abuse emerges, such as
enticing workers to Finland with misleading promises.

• Public authorities must collaborate more closely with labour market
organisations. These organisations must be involved in formulating,
monitoring and evaluating immigration legislation and policy.

• Any foreign workers who are required should primarily be hired as
direct employees and not as agency workers.


4 TWO LABOUR MARKETS: AN UNACCEPTABLE
OPTION
An increase in foreign workers in certain industries organised by SAK
affiliates has given rise to a two-tier labour market in which foreign workers
are disadvantaged. Foreign workers may not enjoy such benefits as
overtime and weekend work bonuses or holiday compensation. Female
foreign workers are doubly disadvantaged, and there are shortcomings in
industrial safety and housing conditions.

Most of the problems arise at workplaces where the workers are
temporarily in Finland and the work is distributed through subcontracting
chains. There are difficulties in the construction and technology, transport,
agriculture, cleaning, market gardening, hotel and catering, and other
industries. Many foreigners also have to pay agency fees when seeking
work in Finland, even though such fees are illegal.

An increasing proportion of work is nowadays commissioned without
concluding an employment contract, with many foreigners forced to work as
bogus entrepreneurs or on an assignment basis. This occurs in many lines
of work, ranging from industry to wild berry picking. The circumstances of
this kind of work typically bind the workers to one enterprise, forcing them
to suffer the associated business risk without sharing in the profits of the
undertaking.

Workers may accept such unsatisfactory arrangements because their
earnings in Finland are often higher than wages in their countries of origin.
They also often remain dependent on the agent or the party providing the
work, and therefore reluctant to contest their justified claims. One
particularly vulnerable and elusive area comprises domestic service work
such as housekeeping and childcare duties performed under unclear
arrangements. Working conditions in this field may be so poor that they
infringe fundamental rights. Nor does it help to dissolve this second-class
labour market that charges are seldom preferred in cases of discrimination
at work, as some public prosecutors fail to recognise this offence or
understand its seriousness.

Abuse of labour recruited from abroad has become increasingly common
and can also involve features of trafficking. These problems generally
become increasingly blatant when workers are brought over greater
distances to Finland or when they are less familiar with the country’s social
and working conditions. A new offence of extortionate work discrimination
incorporated into the Finnish Penal Code in 2004 has failed to deter
discrimination at the workplace. This provision is seldom applied, and the
penalties imposed for the offence have been lenient. The statutory
definitions of extortionate work discrimination, forced labour and human
trafficking should be revised.

Finland must be committed to combating human trafficking and must make
greater efforts to identify cases of forced labour. Greater resources must be
allocated for this purpose. Public prosecutors must also be trained to
recognise discrimination at work, extortionate work discrimination and
trafficking more effectively, and to press the appropriate charges for these
offences.


There are also undocumented migrants in Finland whose circumstances
remain largely unknown. The discrimination suffered by this group is
exceedingly difficult to detect, as most people in such circumstances avoid
any contact with official or even unofficial agencies, including trade unions,
out of fear of exposure.

Employers accountable for infringing laws and collective
agreements

The two-tier labour market has emerged due to the operations of employers
who are unwilling to comply with legislation or collective agreements. SAK
deplores the fact that workers and reputable businesses have to finance
social services on behalf of other operators who ignore or evade their legal
duties.

Employers must be liable for ensuring that all work done in Finland
complies with Finnish laws and collective agreements. The problem of
unlawful employment agency fees must also be tackled.

With the associated problems of unlawfully low pay and other defects in
terms and conditions of employment, abuse of migrant labour reduces tax
and social insurance revenues, infringes the rights of workers, and gives an
unfair competitive edge to the perpetrators of malpractice and to the
employers who allow it to continue.

Defects have also been found in safety training of foreign workers.
Employers must shoulder their responsibilities in this area and familiarise
all employees with the safety aspects of their work to ensure that they are
capable of working without endangering themselves and others. This will
require more time and expense in the case of foreign workers, but work-
related accidents must not be permitted to occur simply because of
inadequate knowledge or language skills.

Social security for all

Although European Union Member States decide their own national social
security arrangements, there are also European provisions governing the
social rights of workers, including an employee mobility Regulation and a
co-ordinating Regulation on social security systems. These Regulations are
based on the idea that workers should be insured in the country where the
work is done.

The Finnish social security system is unusual in the European Union,
insofar as it is divided into employment-based and residence-based social
security (see Appendix 3: Social security of foreign workers in Finland).
Foreign workers enjoy the same status in Finland as the original population
and are fully covered by Finnish social security.

A person coming to work in Finland is covered by employment-based social
security, meaning earnings-related pension, industrial accident and
unemployment insurance, immediately on commencing work. The right to
residence-based social security benefits and services in Finland takes


effect if the person concerned is forecast to remain in Finland permanently.
Residence-based social security includes the sickness and parental
allowances, unemployment benefit, national pensions and family
allowances paid by the Social Insurance Institution of Finland (Kela).

The criteria for regular residence associated with residence-based social
security will have to be reassessed when Finland formulates its position on
the relationship between its national social security system and Community
law.

Social welfare benefits are financed from tax revenues in Finland, whereas
the funds that enable payment of earnings-linked benefits based on
employment come from the social insurance contributions of employers and
employees. Under the insurance principle, eligibility for benefits depends on
participation in the associated contribution process.

Liability for arranging the social security of people working temporarily in
Finland generally remains with the worker’s country of origin. Such workers
represent cheaper labour for employers, as there is no duty to pay social
insurance contributions for them in Finland. They are also not liable for tax
in Finland. Employers must nevertheless arrange industrial accident
insurance for workers entering Finland from outside of the European Union.

Meaningful subscriber liability for infringements by
subcontractors and agencies

In addition to foreign businesses that trade regularly in Finland, there are
hundreds of enterprises operating with no permanent establishment. The
general rule is that foreign employers must take out pension and accident
insurance for employees working in Finland.

There is nevertheless no duty to arrange employment pension insurance
for workers from outside the European Union who are posted to Finland on
a temporary basis if an A1 or E101 certificate indicates that these
employees have pension insurance in their countries of origin. Enterprises
with no permanent establishment tend to operate as subcontractors in the
construction, engineering and cleaning sectors. It is virtually impossible to
monitor from Finland whether a foreign employer has arranged employment
pension or accident insurance in the worker’s country of origin or paid
lawful wages for the work.

Legislation on subscriber liability3 took effect on 1 January 2007, with a
view to improving the quality of business competition and compliance with
guaranteed minimum terms and conditions of employment, and ensuring
that subcontractors and employment bureaux discharge their statutory
obligations.

While this legislation has proved necessary, it does not yet guarantee
healthy competition, nor does it prevent infringements of terms and
conditions of employment. The new law must therefore be revised to stress

3
Laki tilaajan selvitysvelvollisuudesta ja vastuusta ulkopuolista työvoimaa käytettäessä, [“Act on the
Contractor’s Obligations and Liability when Work is Contracted Out”], no. 1233 of 2006.


the duties of employers, with more effective sanctions and regulatory
control. The duties of parties commissioning work and of principal
contractors must be extended to include liability for the wages, pensions
and social security contributions of subcontractor staff and agency workers,
and also for any unlawful agency fees that have been collected from
workers.

Improved rights for trade unions to supervise terms and
conditions of employment

Trade unions supervise the implementation of collective agreements at
workplaces. The supervisory abilities of unions, of shop stewards
representing them at workplaces and of local labour protection delegates
have been enlarged in recent years to include agency work. The employer
must also inform staff representatives of the names of employees from third
countries and of the collective agreement governing their terms and
conditions of employment. This duty also applies in cases of subcontracting
and agency work.

Opportunities for regulatory control by trade unions are nevertheless
limited. There is no guarantee that subcontractors and enterprises using
agency workers will even have an elected staff representative. For this
reason, the right of trade unions to supervise the implementation of
minimum terms and conditions of employment and wages should be
enlarged to ensure that conditions at workplaces can be supervised in
association with public authorities even when there are no locally elected
employee representatives.

Collaboration between labour market organisations and labour protection
authorities must be improved, and a system must be established whereby
the labour protection authorities that supervise compliance with generally
binding collective agreements can rapidly verify whether the terms and
conditions of employment of workers comply with these agreements and
with statutory requirements.

Additional powers are also required for tackling cases of malpractice
concerning wages and other aspects of employment. Trade unions should
enjoy independent standing in civil actions to enforce minimum conditions
of employment. This is the best way to defend the rights of vulnerable
foreigners lacking the local legal knowledge and language skills that are
required to pursue such actions in person. The claims filed by organisations
could concern cases with ramifications for equal opportunities and non-
discrimination. An independent right of action will nevertheless only be
effective if employers or the purchasers of labour and services are subject
to adequate sanctions.

Greater resources and duties for public authorities

Ensuring adequate regulatory control resources for public authorities would
be an investment that would pay for itself many times over in terms of
higher tax revenues and improved competitive conditions for the business


community4. Adequate regulatory control of employer compliance is an
important factor in ensuring equal rights for foreign workers.

Public authorities in Finland currently have no real powers to oversee
foreign enterprises operating with no permanent establishment. Information
is required to verify whether the undertaking meets the criteria for
permanent establishment and is accordingly liable to pay taxes and social
contributions. The common information system currently under construction
between the governments of EU and EEA Member States must ensure that
workers, subscriber enterprises and public authorities are in a position to
determine whether a business operating in Finland with no permanent
establishment has discharged its duties as an employer to pay taxes and
social security contributions in the country of origin.

Failure to pay employer contributions to the Finnish industrial accident
insurance scheme cannot be verified in advance. Compliance with the duty
to insure could be supervised more effectively by setting up an employers’
register for the accident insurance scheme.

Credible regulatory control requires adequate official powers, effective and
comprehensive co-operation between government agencies, and a
strengthening of statutes that currently ensure only superficial supervision.
Additional capable officials and other resources are required at the work
permit authorities, border guard, police and tax administration, with similar
reinforcement of effectiveness in labour protection inspections focusing on
foreign labour and subscriber liability. The electronic foreign labour
monitoring system of the Finnish Immigration Service must also be
expanded to cover not only the pay and other terms and conditions of
employment of foreign workers, but also compliance with employer
obligations on the part of the undertakings and agencies that hire these
workers.

Finland must respect the status of migrant workers

Finland has not yet ratified International Labour Organisation (ILO)
Convention no. 143, concerning Migrations in Abusive Conditions and the
Promotion of Equality of Opportunity and Treatment of Migrant Workers,
nor Convention no. 97 concerning Migration for Employment. It also has yet
to ratify the United Nations International Convention on the Protection of
the Rights of All Migrant Workers and Members of Their Families, even
though Finnish legislation already largely satisfies the requirements of this
instrument.

To improve the status of migrant workers, Finland should at least ratify this
latter Convention, together with ILO Convention no. 143, which obliges a
contracting State to determine whether there are illegally employed migrant
workers on its territory and whether there depart from, pass through or
arrive in its territory any movements of migrants for employment. A country

4
For further details on this subject, see the November 2010 publication SAK:n tavoitteet harmaan
talouden torjumiseksi [“SAK objectives for combating the grey economy”].


that has ratified this Convention must also determine whether these migrant
workers are subjected to conditions contravening relevant provisions.

Finland must be proactive in protecting the rights of mobile workers, and it
must do more to co-operate with international agencies such as the
International Organisation for Migration (IOM).

SAK RECOMMENDS:

• Increased employer liability. The duties of parties commissioning
work and of principal contractors should be extended to include
liability for the wages, pensions and social security contributions of
subcontractor staff and agency workers in the subcontracting chain.

• Trade unions should enjoy independent standing in civil actions.

• Regulatory control of employers hiring foreign workers should be
made more effective, with additional sanctions where required.

• Additional capable staff and further resources should be allocated to
the Occupational Safety and Health Administration (inspections of
migrant workers and subscriber liability), the Border Guard and the
police for improved regulatory control of the terms and conditions of
employment of foreign workers.

• Finnish industrial accident insurance must continue to cover
everyone working in Finland. The only exceptions to this would be
workers who are covered by the legislation of another European
Union Member State or a State Party to a bilateral social security
agreement.

• Regulatory control of occupational health services should be
enhanced.

• The boundary between laws governing trafficking offences and
extortionate work discrimination and the associated need for any
new legislation should be studied. This will also involve clarifying the
concept and status of forced labour.

• Finland should ratify ILO Convention no. 143 and the United
Nations International Convention on the Protection of the Rights of
All Migrant Workers and Members of Their Families.


5 WORK AND LANGUAGE SKILLS EASE
IMMIGRANT INTEGRATION
Immigrant integration is a two-way process: foreigners moving to Finland
will adapt to life here, but Finnish society will also change with the arrival of
people from other cultures. The entire country – including workplaces,
residential areas, associations and the membership of trade unions – will
become increasingly international and diversified.

Language skills and employment facilitate immigrant integration, and
regular work is the most effective way to safeguard the livelihood of
immigrants and their families. The unemployment rate of immigrants in
Finland nevertheless remains considerably higher than that of the original
population. Public authorities must investigate the principal reasons for
immigrant unemployment and the obstacles to finding work. They must
collaborate with labour market organisations to find solutions to this
problem. Full employment must remain the aim in integrating permanent
immigrants of working age.

Integration measures for all immigrants

New immigrant integration legislation that is due take effect in Finland on 1
September 2011 will seek to respond more effectively to the needs of
contemporary society and immigrants. SAK believes that the new
legislation must also bring migrant workers into the scope of most official
immigrant integration measures. The new legislation will require
Employment and Economic Development Offices or local authorities to
prepare an initial integration needs analysis for all immigrants. This will
form a basis for assessing the need for language courses and any
additional or further training that is required for accessing effective
immigrant integration measures and rapid employment. Employment and
Economic Development Offices or local authorities will have to ensure that
an individual immigrant integration plan is prepared for immigrants when
necessary. Immigrants will also be guided towards customary measures to
promote employment, such as labour market training and other vocational
development services.

Employment and Economic Development Offices and local authorities have
not always managed to implement immigrant integration plans in the
agreed manner, and so continual supervision of the quality and
implementation of immigrant integration plans will also be required.
Adequate support must be provided for immigrant integration without
reducing the resources allocated to other employment policy measures.

More and better language training

All immigrants must have access to language courses. The prospects of
finding work are better for those who can speak the language of a country
and understand how its people behave at work. It is essential for an


immigrant to learn Finnish or Swedish in order to lead a full and normal life
outside the home. The standard of language courses currently arranged for
immigrants varies widely, and there are often long queues for course
admission. The instruction is also not always suited to the immigrant’s
needs and current standard. The government must make a thorough and
careful study of the problems of language training and of the quantity and
quality of these services. The number of language courses of varying
standard should be increased and the quality of language instruction must
be improved. Immigrants must also be given an opportunity to take part in
language training during working hours and employers must contribute to
the associated costs.

Swifter recognition of qualifications

Qualifications – especially those earned in Finland – improve access to
employment. The Ministry of Education and Culture must accelerate
recognition of foreign qualifications and the degree equivalence process.
Additional resources must also be allocated to the further training that is
required for working in Finland. Apprenticeship and other vocational training
combined with Finnish and Swedish language instruction will facilitate
immigrant employment. Training formats of this kind have a good track
record and should be used more often. Skills tests are also a way for many
immigrants to gain the required vocational competence, and there should
be more opportunities to take such tests.

An adequate labour market information pack for immigrants

Besides instruction in the Finnish and Swedish languages and an
appreciation of the national culture and social system, immigrants must be
provided with adequate facilities and resources for learning about the
labour market and the world of work, and for acquiring the necessary job
skills. These learning opportunities must be made readily available to
everyone moving to Finland, whether on a permanent or temporary basis.
Many employers take advantage of immigrant ignorance of the minimum
terms and conditions of employment in Finland.

The information package provided by the Ministry of the Interior to all new
immigrants must include adequate details of the labour market and a clear
explanation of the work of the trade union movement. As members of a
trade union, immigrants are in the best position to defend their rights at
work and help to prevent the emergence of a two-tier labour market.

Allowing for the needs of immigrant families

Immigrants are not merely a labour reserve that leaves the country when
no longer required, but real people who often have families to support.
Immigrant integration planning must allow for the needs of the whole family,
with greater attention paid to providing language and literacy skills training
to people who remain in Finland for humanitarian reasons, and particularly
to many women raising families at home. Efforts must be made to bring
such people into the labour market by providing suitable training. This is the


most effective way to ensure active social participation by women and care
of the family, which is a crucial element in integrating immigrant families.
Young immigrants must correspondingly have access to the additional
support teaching and preparatory education at schools and secondary
educational institutions that are required to enable their progress into
further education.

Immigrants have tended to gravitate towards the same residential areas
particularly in larger cities. While this is not necessarily a problem, it
combines with lower educational levels and a high rate of rental housing to
exacerbate the risk of growing deprivation in certain neighbourhoods. Local
authorities must do much more to prevent the emergence of
underprivileged urban residential areas. Rising immigrant homelessness is
a particularly disturbing trend. Immigrants must also be guaranteed access
to affordable housing.

Immigrants must have access to local social welfare and health services in
a language that they can understand. It is also important that they retain
their native languages in Finland and pass these on to their children.
Multilingualism is a benefit to the individual and to society as a whole.

SAK RECOMMENDS:

• Everyone moving to Finland should be informed about Finnish
society, the customs of the working world and the work of the trade
union movement as part of the basic information package required
under the Integration Act5.

• Application of the new Act must ensure that all immigrants have
access to an initial integration needs analysis and are able to take
part in Finnish or Swedish language courses and other immigrant
integration measures.

• The number of Finnish and Swedish language courses at various
levels must be increased considerably, with more attention paid to
improving the quality of language training.

• Language training should be included in vocational training for
immigrants.

• Employers recruiting staff from abroad must contribute to the costs
of language training and vocational orientation.

• Recognition of foreign qualifications and the degree equivalence
process must be accelerated.

• Additional resources must be allocated to the further training that is
required for working in Finland.

5
Laki kotoutumisen edistämisestä, no. 1386 of 2010. The provisions on the basic information package
are set out in section 7 of the Act.


APPENDIX 1 Foreign population of Finland by nationality,
native language and country of birth

Source: Statistics Finland: Census data 2009.

Population of Finland
5,351,400

Foreigners Foreign language native Foreign born
155,700 (2.9 %) speakers 233,200 (4.4 %)
207,000 (3.9 %)

Russian 28,200 Russian 51,700 Former 47,300
USSR
Estonian 25,400 Estonian 25,100 Sweden 31,000
Swedish 8,600 English 12,100 Estonia 21,800
Somali 5,500 Somali 11,700 Russia 7,300
Chinese 5,100 Arabic 9,700 Somalia 7,110
Thai 4,500 Kurdish 7,100 China 6,600
Iraqi 4,000 Chinese 7,100 Iraq 6,200

Figure 1 Foreign population of Finland by nationality, native language and
country of birth in 2009. Source: Statistics Finland: Population data
breakdown 2009.


APPENDIX 2 The work of SAK to promote multiculturalism and
equality at the workplace

Joint workplace training materials from the national labour market
confederations

In 2007 the national labour market confederations of Finland (SAK, the
Finnish Confederation of Professionals – STTK, the Confederation of
Unions for Professional and Managerial Staff in Finland – Akava and the
Confederation of Finnish Industry – EK) prepared joint training materials for
workplaces on promoting equal opportunities at work. The materials were
prepared by Linnea Alho, Outi Viitamaa-Tervonen and Pauli Juuti at Kiljava
Institute and JTO School of Management, and were entitled Mahmoud,
Mertsi ja Maija: Monimuotoinen työyhteisö ja syrjimätön työn arki [a
diversified workplace and non-discrimination in daily work]. These Finnish
language training materials are available online at www.sak.fi → Tämä on
SAK → Maahanmuuttajat.

Making multiculturalism a resource at work

SAK has been involved in several immigrant and multicultural projects. The
Etmo6 project financed by the European Social Fund EQUAL Community
Initiative was implemented in the Helsinki Metropolitan Area and the City of
Turku in 2001–2005, focusing on 16 workplaces where immigrants were
employed. This project provided a platform for one of the earliest surveys of
immigrant working conditions, comparing such aspects as differences
between immigrants and the original population concerning attitudes
towards work and adaptation to the world of work. The project prepared
training materials on multiculturalism and a video presentation entitled Olen
suomalainen – tarinoita työelämästä [“I am a Finn – tales from the world of
work”].

Education for a multicultural workplace

SAK was the administering partner in the Petmo7 project, which followed on
from Etmo. This project was implemented at 17 industrial, public sector and
private service workplaces in Helsinki, Espoo and Vantaa. The partners in
the Petmo project were three training organisations (TSL8, Kiljava Institute
and JTO School of Management), the Confederation of Finnish Industry –
EK, eight trade unions affiliated to SAK, and the TU9 and Tehy10 trade
unions affiliated to the Finnish Confederation of Professionals – STTK.
There were also three international partners in the project from the United
Kingdom, France and Austria.

6
Monikulttuurisuus voimavaraksi työyhteisössä (“Multiculturalism as a resource at work”).
7
Perehdyttämällä monimuotoiseen työyhteisöön (“Orientation for diversity at work”).
8
Työväen Sivistysliitto – the Workers’ Educational Association of Finland.
9
Toimihenkilöunioni TU – the Union of Salaried Employees (now known as Pro).
10
The Union of Health and Social Care Professionals.


An academic programme of four study credits for diversity trainers was
developed during the Petmo project. This has enabled Kiljava Institute and
JTO School of Management to arrange training courses for workers’
representatives and supervisors.

The project also produced a manual for use by immigrants and job
orientation trainers entitled Erilaisuus sallittu [“It’s OK to be different”],
edited by Päivi Vartiainen-Ora and Auli Korhonen, 2007.

A Petmo project guide to the world of work for immigrants in Finland is
available online through the website of the SAK e-learning environment at
www.tyoelamanverkko-opisto.fi/petmo.

Baltic Sea Labour Network (BSLN)

A three-year Baltic Sea Labour Network (BSLN) initiative financed by the
European Union seeks to prevent the exploitation of cheap labour in the
Baltic Sea region, to encourage immigrants to join trade unions, to call
greater public attention to the problems and challenges of labour mobility,
and to lobby for better management of international labour flows. The
project brings together 26 partners from the nine Baltic Sea States. Besides
SAK, the participants from Finland are the other national employee
confederations: the Finnish Confederation of Professionals – STTK and the
Confederation of Unions for Professional and Managerial Staff in Finland –
Akava.

The project has conducted interview-based research concerning trade
union membership and participation among speakers of the Estonian and
Russian languages, and their experiences of the world of work. It has also
provided a platform for arranging training for shop stewards, trade union
officials and immigrant organisations on such subjects as cross-cultural
encounters, labour mobility and issues arising from cross-border working.

Two guidebooks have been produced during the project:

• The Finnish Trade Union Movement – what every employee should
know provides basic details of the work of Finnish trade unions,
explaining how to join a union and the importance of membership in
four languages: Finnish, English, Russian and Estonian.
• Insurance against an accident at work or occupational disease for
employees coming to Finland has been published in five languages:
Finnish, English, Russian, Estonian and Polish.

Both guidebooks are available online at www.sak.fi/english → Publications
→ Publications 2010.

The BSLN project will continue until the end of 2011.

Tallinn Information Centre

The Tallinn Information Centre was established in 2002 to provide
information and advice on aspects of working in Finland. It serves as a


source of basic details concerning Finnish wage levels, taxation, terms of
employment and labour legislation, and explains the services of trade
unions and the principles of trade unionism in the Nordic countries.

The Information Centre was originally part of a three-year project financed
by the European Union Interreg IIIA programme to improve co-operation
between the Finnish and Estonian labour markets. The partners in the
project were SAK and its affiliated trade unions, the Finnish Union of
Salaried Employees – TU11 and the Confederation of Estonian Trade
Unions – EAKL. SAK and its affiliates and TU continued to fund the
Information Centre project until the end of 2008, and its work of providing
information on the Finnish labour market has continued at an office in
Tallinn maintained by the Finnish Construction Trade Union.

The project strengthened collaboration between Finnish and Estonian
labour market organisations and helped to make Estonian migrant workers
more aware of the norms that govern work in Finland and of the trade union
movement.

The Information Centre received about 9,500 visits during the initial project
from people interested in Finnish working conditions and the services of the
trade union movement, with a further 8,000 enquiries received by e-mail
and telephone. Most people seeking advice were employed in construction,
services, engineering and transport, agriculture and forestry, and health
care.

11
Now known as Pro.


APPENDIX 3 Social security of foreign workers in Finland

The following table provides a general guide to the main principles and
does not cover special cases or exceptional circumstances.

Social security entitlement may also be based on bilateral social security
agreements that Finland has concluded with the Nordic countries, the USA,
Canada, Chile, Israel and Australia.

Country of
origin Under 4 months 4 months–2 years over 2 years
EU/EEA or
Switzerland If employment pension Right to sickness Covered by Finnish
contributions are paid, insurance benefits, residence-based and
then there is a right to child home care employment-related
child home care allowance and family social security.
allowance and local allowance. National
authority public health pension and survivors’
services. Insured in pension accrue.
Finland against work- Covered by Finnish
related accident and Unemployment
occupational illness. Security Act. Insured in
Finland against work-
related accident and
occupational illness.

EU/EEA or
Switzerland, Right to medical care. Right to medical care. Right to medical care.
posted Otherwise coverage by Otherwise coverage by Otherwise coverage
worker the social security the social security by the social security
system of the country system of the country system of the country
of origin. of origin. of origin (where
status of posted
worker continues).

Third
country Insured in Finland Insured against illness Covered by Finnish
against work-related in home country, and residence-based and
accident and against work-related employment-related
occupational illness. accident and social security.
occupational illness in
Finland. Covered by
Finnish Unemployment
Security Act, but no
entitlement to
unemployment
benefits.

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