SAK Immigration Policy Objectives

1·2011

SAK Immigration Policy Objectives

SAK Immigration Policy Objectives 1

1 INTRODUCTION ................................................................................................... 2Human 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 .............................. 9Employers 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

about 57,500–67,500

Foreigners permanently

domiciled in Finland and in work 65,000

↓ ↓

From EU countries about 40,000–50,000

• Permit holders 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

155,700 (2.9 %) Foreign language native

speakers 207,000 (3.9 %)

Foreign born 233,200 (4.4 %)

Russian 28,200 Russian 51,700 Former

USSR 47,300

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 contributions are paid, then there is a right to child home care allowance and local authority public health services. Insured in Finland against work-related accident and occupational illness.

Right to sickness insurance benefits, child home care allowance and family allowance. National pension and survivors’ pension accrue. Covered by Finnish Unemployment Security Act. Insured in Finland against work-related accident and occupational illness.

Covered by Finnish residence-based and employment-related social security.

EU/EEA or Switzerland, posted worker

Right to medical care. Otherwise coverage by the social security system of the country of origin.

Right to medical care. Otherwise coverage by the social security system of the country of origin.

Right to medical care. Otherwise coverage by the social security system of the country of origin (where status of posted worker continues).

Third country

Insured in Finland against work-related accident and occupational illness.

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

Covered by Finnish residence-based and employment-related social security.

News & Politics

SAK Immigration Policy Objectives