Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

Equal Remuneration Convention, 1951 (No. 100) - Finland (Ratification: 1963)

The Committee notes the detailed information provided by the Government in its report as well as the comments from the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Salaried Employees (STTK), the Confederation of Unions for Academic Professionals in Finland (AKAVA), and the Commission for Local Authority Employers (KT).

1. The Government states that in 1997, women's total average earnings in the public and private sectors combined constituted 79.2 per cent of men's corresponding average earnings, representing an increase from 1994 of 4.5 per cent. The figures reported also reveal sectorial differences in whether the pay gap has widened or narrowed between men and women over the last few years. These sectorial differences are further borne out by the comments of AKAVA which reports a widening of the gender wage gap, stating that the pay of all AKAVA-affiliated women in full-time employment was 76 per cent of men's in 1995; in 1997, the corresponding figure was 74 per cent. From a more long-term perspective, KT states that earnings differentials between men and women workers have decreased since the 1970s. SAK indicates that pay differentials between men and women workers have remained unchanged in the 1980s and 1990s, although there have been changes in the pay structure as Finland moves from merely work-based pay to a pay based on competence and performance.

2. With respect to the reasons for the wage differentials, the Government indicates that these differentials are affected by numerous factors simultaneously, including occupational segregation as well as spending cuts made in the public sector during the recent recession. Reference is also made to changes in the unemployment rate for men and women and the differential impact the recent economic growth has had on men and women which affects their remuneration levels. AKAVA considers that the employer's sector and sphere of operations, the post concerned, and the employee's years of experience are all factors which contribute to this situation. AKAVA points out that pay differentials are smaller in the state administration than in the municipal sector, although it maintains that the widespread use of fixed-term employment relationships may weaken the standing of trained women in the state administration in the long run. The KT attributes the continued differentials to a gender-separated labour market, training, the age structure and the amount of overtime worked by men and women workers.

3. The Committee notes from the Government's report that the conclusions of the study commissioned by the Equality Ombudsman on the pay differentials between men and women from an economic point of view found that the adoption of legislation on equal pay was insufficient to reduce the pay differentials and that active measures were required, such as the introduction of effective equality programmes. Measures to facilitate work and family responsibility were found to have a limited effect on reducing the pay gap as long as men do not take up the opportunities to use these measures along with women. The study also concluded that the negotiating power of women was viewed as a vital element in further reducing the pay differential. The Committee would be grateful if the Government would continue to provide information on the progress of efforts taken to reduce the wage gap and combat occupational segregation in both the public and private sectors. Please provide, in particular, information on active measures such as the equality programmes referenced in the Government's report and initiatives in the areas of education, vocational training and occupational guidance aimed at reducing pay differentials.

4. The Government states that, in the commercial sector, increment levels for part-time employees governed by collective agreements were changed at the beginning of 1998 and that the new regulations permit part-time employees to accumulate years of service and move into correspondingly higher pay grades, in the same manner as full-time employees. The Government indicates that this legislative change will improve the earnings level of the large majority of women part-time workers in the commercial sector. The Committee notes this information with interest and requests the Government to provide copies of the relevant regulations and to supply information on the impact of the regulations on the gender pay gap.

5. The Committee notes with interest that the collective agreement for 1998-99, concluded on 12 December 1997, provides for the payment of equality allowances to be shared out as agreed by the unions involved. The STTK reports that it has received positive feedback from member unions on the manner in which equality and low-income allowances have been shared out. The Government further indicates that preparations are under way for collective agreements on new pay systems in numerous sectors of the public administration, covering 80 per cent of all state personnel. In relation to the monitoring of collective agreements, the STTK points out the difficulty it has due to the limited access the shop stewards have to pay information. It states, however, that other approaches to equal pay are also needed, including a reform of pay systems through the development and introduction of job demand evaluation tools, as well as by making workplace equality planning more effective. The Committee expresses its hope that the Government will continue to supply information on new developments in this area, and requests the Government to provide a copy of the interim report compiled by State contracting parties, focusing on the link between job demands and pay as well as between gender and pay.

6. The Government indicates that the collective agreement mentioned above stipulates that the central labour market organizations' working group shall continue its work, which includes promoting and monitoring the development and introduction of job evaluation systems and issuing statements and opinions on evaluation at the request of the social partners, the Equality Ombudsman and the unions. The Government is asked to provide a copy of the handbook on job evaluation published by the working group, as this annex was not received with the report. The Government is also asked to continue to provide information on the ongoing activities of the working group, including copies of any reports issued by the group on job evaluation systems and trends in equal pay.

7. The Committee notes the information contained in the Government's report concerning the annual workplace equality plans formulated by employers under the 1995 amendments to the Equality Act. The Government states that some equality plans call for the creation of pay systems built on job evaluations as a means to achieve greater pay equality. Other plans require pay analyses to be carried out at regular intervals to permit pay discrimination to be identified and corrected, while others view a reallocation and reorganization of work as one method of promoting equal pay. The Committee would be grateful if the Government would provide a copy of the 1996 materials issued by the Equality Ombudsman providing employers with guidelines and instructions on how to comply with their equal pay duties. In addition, the Government is requested to provide information on the surveys conducted by the Ombudsman on workplace equality planning.

8. The Committee notes the information provided by the Government with regard to the equal pay complaints received by the Equality Ombudsman. The Committee hopes that the Government will continue to provide information on the Ombudsman's activities relevant to the investigation and resolution of equal pay complaints, including the manner in which the Ombudsman's decisions are implemented.