Legislative program needed to implement the EU’s occupational Safety and Health Strategy

Effective occupational safety measures and prioritization of workers’ health and safety are resource factors that also support productivity and the economy in a socially sustainable manner. The COVID-19 crisis made the interaction between the economy, health, and safety increasingly visible and highlighted the need to strengthen internal cooperation within the European Union. A common Occupational Safety and Health Strategy supports cooperation and brings the union’s activities closer to people’s everyday lives. As the changes in the world of work are continuous and rapid, and challenges such as the climate crisis bring new risk factors, the Occupational Safety and Health Strategy must also evolve, and its objectives should be able to be updated during the strategy’s validity period. Finland also benefits from these EU occupational safety measures.

A Directive to prevent psychosocial risks

The EU’s Strategic Framework for Occupational Health and Safety recognizes psychosocial risks and increased mental health problems. This is a phenomenon that significantly threatens the health of workers, leading to considerable negative consequences such as workplace stress. There are economic costs involved in workers’ absences; sick leaves and early disability pensions. Over half of workers in EU countries report that work-related stress is common in their workplace, and four out of five managers are concerned about work-related stress. According to a survey conducted by the European Agency for Safety and Health at Work, the majority of employers state that compliance with the law is the main reason for addressing occupational health and safety issues in the workplace.

However, the actions proposed in the EU strategy are limited to projects, campaigns, and recommendations. In addition to these, a legislative program is needed to support the implementation of the strategy. The need for legislation to prevent psychosocial risks and work-related mental health problems is evident. We need a directive for the prevention of work-related psychosocial risks, overload, and mental health problems, and the Commission must act promptly. EU-level legislation is needed because, so far, only a few member states have clear legislation on managing psychosocial stress factors.

Key legislative initiatives to ensure Occupational Health and Safety

Another significant cause of incapacity to work is work-related musculoskeletal disorders. Legislation regarding this issue also needs to be reviewed, updated, and developed.

In the next legislative term, efforts to develop occupational chemical safety at the EU level should continue. Setting and updating exposure limits is necessary to reduce the risk of work-related cancer and reproductive health risks.

Regulations benefit workplaces only when they translate into practical actions in everyday workplace operations. EU legislation on occupational health and safety should take into account recent research findings and the current challenges posed by factors such as the changing world of work, the climate crisis, technostress, ethical stress, and global infectious diseases.

In addition to preparing new directives, the effective implementation, application, monitoring, and updating of existing regulations must also be prioritized in the EU. The European Parliament and the Advisory Committee on Safety and Health at Work, operating under the Commission, play a significant role in the preparation and monitoring process. Alongside new challenges, traditional occupational health and safety work and risk prevention must also be well managed.

Impact of Digitalisation

Remote and hybrid work, digitalisation of the workplace, and multi-location mobile work are becoming more common across various sectors. The specific features of Occupational Health and Safety related to remote work must be considered in all activities. The right to disconnect for workers must be strengthened. Regulation of digitalisation and AI (Artificial Intelligence)
systems must also establish fair frameworks for future development.

Additional information:

• Susanna Salovaara, Director at FinUnions, tel. +32 488 47 95 08, susanna.salovaara@finunions.org  
• Pekka Ristelä, Head of International Affairs, SAK, tel. +358 40 5468781, pekka.ristela@sak.fi
• Maria Häggman, Head of International Affairs, STTK, tel. +358 40 148 9091, maria.haggman@sttk.fi

The European Commission’s minimum wage proposal would promote sectoral collective agreements

The Finnish trade union confederations SAK and STTK welcome the Commission’s proposal for a minimum wage (COM/2020/682 final) and support its objectives. With its proposal, the Commission wants to strengthen the role of the labour market parties and collective bargaining in EU countries. It therefore wants to tackle the Europe-wide problem of wage adequacy and development and to address the associated distortions of competition in the internal market

SAK and STTK consider it important that the draft directive is strongly based on the promotion of collective bargaining. It is good that the key element of the proposal is the promotion of a model similar to the Finnish system, i.e. a system based on sectoral collective agreements in the member states.

The directive must support an increase in the minimum wage, especially in low-wage EU countries, and the best way to do this is through collective bargaining. Statistics show that wage levels are the best, both on average and in terms of low-wage earners, in countries where wages are widely agreed in sectoral collective agreements.

The minimum wage directive proposed by the Commission would not be a threat to the Finnish collective bargaining system. The proposal does not require the introduction of a statutory minimum wage in EU countries, nor does it include measures that have a direct impact on wage levels. Wage determination can continue to be based entirely on collective agreements, and the proposal does not interfere with the competence of the labour market parties to agree on working conditions through agreements. The proposal respects the limits of EU jurisdiction.

The obligation imposed on member states by the directive to report on wages and the coverage of collective agreements would have an immediate effect on Finland. The reporting obligation as part of the monitoring of the implementation of the Directive is justified.

The lower limit of the minimum wage, which would be tied to the average and median wages in each country, is not included in the proposal. Securing a decent level of minimum wages, for example through such a lower limit, in countries with a statutory minimum wage would also be indirectly in Finland’s interest.

Additional information:

• Ms Susanna SALOVAARA, Director at FinUnions, +32 488 47 95 08, susanna.salovaara@finunions.org  
• Mr Pekka RISTELÄ, Head of International Affairs, SAK. +358 40 5468781, pekka.ristela@sak.fi 
• Ms Maria HÄGGMAN, Head of International Affairs, STTK, +358 40 148 9091, maria.haggman@sttk.fi

Strengthening of the EWC Directive is necessary        

FinUnions supports the Commission’s goal to revise the European Works Council Directive. The Commission published its proposal for the revised directive on January 24, 2024.

The task of European Works Councils (EWCs) is to provide employees with influence in large multinational companies where important strategic decisions are made at the company’s European headquarters. Their purpose is to ensure that despite economic globalization, workers’ rights to information and consultation in decision-making are respected. It is a form of transnational cooperation. Finland has a significant number of EWC companies on a European scale. A considerable number of Finnish employees in various sectors are represented through the EWC system.

The proposed changes to the directive aim to facilitate the establishment of European Works Councils in multinational companies. It is also necessary to clarify the regulation regarding the matters on which European Works Councils need to be informed and consulted. The Commission aims to promote timely information and consultation of workers the changes and ensure that EWCs have the necessary conditions to carry out their tasks. The purpose is also to strengthen gender equality in EWCs.

FinUnions and European trade union confederations consider the strengthening of the directive necessary. Currently, the directive does not ensure workers’ rights as of timely access to information and consultation. Consultation often occurs too late in the process. Additionally, excessive confidentiality has limited consultation rights and information sharing. There have also been problems in determining which issues are considered transnational, or within the scope of the European Works Council’s responsibilities, and how the impacts or potential impacts of the issue are assessed. The sanction system related to non-compliance with regulations is inadequate, and the legal protection process is complex. The sanction system should be clearly outlined in the directive, as it supports the implementation of the directive’s purpose in all EU/EEA countries.

The Central Organisation of Finnish Trade Unions (SAK) and the Finnish Confederation of Professionals (STTK) will form a more comprehensive opinion on the details of the directive as the directive is making progress, considering also the influencing and preparatory work of the European Trade Union Confederation (ETUC).

Additional information:

• Susanna Salovaara, Head of Office, FinUnions, +32 488 479 508, susanna.salovaara@finunions.org

• Pekka Ristelä, Head of International Affairs, SAK, +358 40 5468781, pekka.ristela@sak.fi

• Maria Häggman, Head of International Affairs, STTK, +358 40 148 9091, maria.haggman@sttk.fi

EU fiscal rules must be reformed rapidly

• The debt rule must be abandoned
• The deficit rule should allow for public investments
• Current account management more strongly involved in the regulatory framework

FinUnions’ member organizations SAK and STTK  consider it necessary to reform the rules of EU fiscal policy. Even before the COVID-19 crisis, the European Commission began reforming its debt and deficit rules, but the work was not completed.

During the COVID-19 crisis, fiscal policy rules have been shelved. Instead of returning to the old regulatory framework, we need to move to comply with revised rules after the crisis. The current rules have proved to be pro-cyclical, reinforcing economic fluctuations when they should instead support counter-cyclical fiscal policies.

The debt rule must be abandoned. Following the COVID-19 crisis, it is unrealistic to return to the public debt ceiling of 60% of GDP. It is difficult to find an economic justification for the ceiling of the debt rule, and it is not even necessary to achieve it in the near future.

The deficit rule should make public investments possible. The 3% of GDP deficit rule set out in the Maastricht Treaty can serve as a basis for a new regulatory framework, but it must exclude public investments. This will ensure that the public sector has the opportunity to revitalize and sustain investments even in recessions. This follows the so-called the golden rule that investments should be financed with debt and current expenditure with income over cyclical fluctuations.

Deficit rules also need to be simplified. The definition of a structural deficit is uncertain and often changes over time. For this reason, rules based on a structural deficit should be abandoned.

Current accounts at the heart of the new regulatory framework. Current account imbalances were largely the cause of the Eurozone crisis. Rules based on current account management should therefore be significantly strengthened. Current account deficits and surpluses should be treated symmetrically, for example by requiring the 3% deviation to be invested in the European Investment Fund.

Additional information:

• Ms Susanna Salovaara, Director at FinUnions, tel. +32 488 47 95 08, susanna.salovaara@finunions.org 
• Mr Patrizio Lainà, Chief Economist, STTK, tel. +358 40 583 4432, patrizio.laina@sttk.fi