Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

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

The Committee notes the Government’s report and the comments of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Confederation of Finnish Industries (EK) and the Commission for Local Authority Employers (KT) included therein. It also notes the report on the Final Evaluation on the Framework of Actions on Gender Equality in Finland (2009), sent by the Government.

Gender pay gap. The Committee recalls that the tripartite equal pay programme has the objective of narrowing the gender pay gap to 15 per cent by the year 2015. The Committee notes from the Government’s report that over the past five years the gender pay gap has been reduced by one percentage point and that the difference in pay between men and women was at 18.83 per cent in 2008. With respect to average gross hourly earnings, Eurostat figures for 2008 indicate that the unadjusted gender pay gap remains unchanged at 20 per cent. The Committee further notes the Government’s statement that due to the economic recession, action to reduce the gender pay gap will encounter additional challenges. The report of the Final Evaluation on the Framework of Actions on Gender Equality in Finland (2009) indicates disappointment by some of the social partners at the concrete achievements of the programme and the fact that some of the structural problems of the labour market, such as occupational segregation, have not been sufficiently addressed. Nonetheless, the Committee notes the overall strong support by all parties to continue the equal pay programme. The Committee asks the Government to take appropriate measures to address the challenges encountered in the implementation of the equal pay programme with a view to enhancing its impact at national, sectoral and workplace level, and to provide detailed information on its implementation and the results achieved. Please also indicate the measures taken to address more effectively some of the structural causes of the gender pay gap, such as occupational gender segregation, and provide the fullest possible statistical data on differences in men’s and women’s earnings with a view to assessing progress made since 2008.

Article 2 of the Convention. Application in practice. Equality plans and equal pay surveys. The Committee notes from the Government’s report that surveys conducted in 2008 and 2009 for the purpose of assessing the functionality of the Equality Act (Act on Equality between Men and Women (609/1986)) indicate that a total of 62 per cent of the workplaces obliged to prepare an equality plan had done so, with the majority of the plans made in the government and municipal sectors. While 60 per cent of the workplaces undertook an equal pay review, employee representatives in the public sector had expressed criticism at the manner in which equality plans had promoted equal pay. Despite the requirement in the Equality Act, in only one third of the workplaces employee representatives had participated in equal pay reviews. The EK states that 75 per cent of its member companies prepared equality plans together with employee representatives. The Committee notes that SAK raises concerns about the manner in which equal pay reviews are able to address unexplained pay inequalities. According to SAK, the surveys on equal pay reviews indicated that reviews did not result in any action in 45 per cent of the workplaces. A survey conducted by SAK indicated that corrective measures had been undertaken in only 14 per cent of the cases in which pay discrimination was found. According to AKAVA, clarity of the legislation on pay reviews, the preparation of pay reviews and access to pay information remain problematic, especially in the private sector. The EK states, in this regard, that making gender equality plans more accessible at the workplace level and the drafting process more transparent have been identified by all social partners as priorities in making gender equality planning more efficient. The Committee notes that, according to the Ministry of Social Affairs and Health, a procedure in the workplace granting employee representatives direct access to information on pay could clarify the situation and reduce the administrative burden on businesses. The Committee welcomes the continued efforts made by the Government and the social partners to promote equal remuneration for men and women for work of equal value through equal pay reviews under the Equality Act. The Committee asks the Government to take measures, in cooperation with the social partners, to address the implementation gaps of equal pay reviews, including considering granting employee representatives direct access to pay information at the workplace level, taking measures aimed at identifying unexplained and discriminatory gender pay differentials and at improving participation of employees and their organizations in the development of equality plans and implementation of pay reviews. The Committee also asks the Government to provide further information on the actual impact of the pay reviews on reducing gender pay differentials in the private and public sectors, including relevant statistical data, and information on the number of equal pay reviews that have resulted in specific follow-up action, including corrective action where pay discrimination was found. Noting that the report on the functionality of the Equality Act was to be submitted to Parliament in 2009, the Committee asks the Government to provide a copy of the report, including a summary of its findings.

Indirect discrimination with respect to remuneration. The Committee notes the concerns expressed by AKAVA that young educated women are more often than men employed on fixed-term contracts, particularly in the state sector. As employees on fixed-term contracts often receive lower pay and career progress for highly educated women isasmuch as ten years behind than that of men with corresponding levels of education, AKAVA considers that the fixed-term employment contracts of young women may constitute an attempt by employers to avoid employment security and the costs incurred due to parental leave. According to AKAVA, the current legislation is unable to address such indirect discrimination against women with respect to remuneration. The Committee asks the Government to provide statistical data, disaggregated by sex and age, on the employment of men and women on fixed-term contracts in the state sector, and their corresponding levels of remuneration. The Committee also asks the Government to examine the following:

(i)    the extent to which the more frequent employment of young educated women on fixed-term employment contracts results in indirect discrimination with respect to remuneration; and

(ii)   any gaps in the legislation on equal remuneration with a view to addressing such indirect discrimination.

The Committee is raising other points in a request addressed directly to the Government.