Finland’s new co-operation law could cost workers thousands, unions warn

Finland’s right-wing Orpo-Purra government has rewritten the Act on Co-operation within Undertakings, slashing the time for change negotiations and raising the threshold for mandatory talks. The new rules, effective from July 2025, are expected to benefit employers while potentially costing workers thousands of euros.

Under the previous law, companies with at least 20 employees were required to hold change negotiations lasting between 14 days and six weeks. The new law raises the threshold to 50 employees and cuts negotiation times to between seven days and three weeks. For companies with 20–49 employees, lighter rules apply: negotiations are only needed if the employer plans to reduce at least 20 workers over a 90-day period.

The Industrial Union warns that the changes will directly impact workers’ pay. With shorter negotiation periods, redundancies or layoffs can begin earlier, meaning employers can stop paying salaries up to three weeks sooner. For an employee earning €3,000 a month, that could mean a loss of €2,250 per year.

Experts also question whether the shorter timeframe allows enough time for employees to present alternative solutions, reducing their ability to influence outcomes. The union fears the law effectively ends meaningful dialogue in smaller companies, where change negotiations were previously common.

Article source: heikkijokinen.info | Image credit: Reuters