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

Direct Request (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the observations of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA) and the Finnish Confederation of Professionals (STTK) (thereafter referred to as “the trade unions”), and of the Federation of Finnish enterprises (SY), the Confederation of Finnish Industries (EK) and the Local Government and County Employers (KT), attached to the Government’s report.

Articles 1 and 2 of the Convention. Equality plans and equal pay surveys. According to the Equality Act, if the number of staff in the service of the employer is regularly 30 or more, the employer is to draw up an equality plan at least once every two years. The equality plan pays attention particularly to wages and other terms of employment, determines the equality promoting measures at the workplace and includes a pay survey (in 2021, there were 7,000–8,000 employers and 3,000 educational institutions under the obligation to draw up a gender equality plan). The Committee notes the Government’s indication in its report to the United Nations (UN) Committee on the Elimination of Discrimination against Women (CEDAW) that inspections carried out by the Ombudsman for Equality reveal that there is still a need for improvement in the quality of pay surveys and in gender equality planning in its entirety (CEDAW/C/FIN/8, 1 April 2021, para. 229). It further notes from the Government’s report that, according to a survey undertaken by Statistics Finland in 2020 focusing on the prevalence and quality of employers’ gender equality plans and pay surveys, the majority of organizations draw up such plans and surveys but that there is considerable variation in their scope and quality: improvements are needed in relation to cooperation with staff, pay comparisons (too limited in scope), processing of pay data and concrete measures included in plans. The Committee asks the Government to provide information on the measures taken or envisaged:

• (i)to support employers in improving the quality of their gender equality plans and pay surveys (including their scope of comparison); and
• (ii)to monitor and provide results on their impact on the gender pay gap in the workplace.

Article 2(2)(c). Collective agreements. The Committee wishes to recall the important role that collective agreements can play in the fight for pay equity. Therefore, the Committee requests the Government to indicate any steps taken, in cooperation with the social partners, to:

• (i)promote the inclusion of provisions implementing the principle of equal remuneration for men and women for work of equal value in local or industry-level collective agreements;
• (ii)remove any provisions which, directly or indirectly, results in discrimination; and
• (iii)evaluate the results achieved.

Article 3. Objective job evaluation. In view of the strong gender-segregation of the labour market in Finland (see the Committee’s comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111)) and the very slow pace of the decrease in the gender pay gap, the Committee wishes to recall that whatever methods are used for the objective evaluation of jobs, particular care must be taken to ensure that they are free from gender bias. It is important to ensure that the selection of factors for comparison, the weighting of such factors and the actual comparison carried out are not discriminatory, either directly or indirectly (see 2012 General Survey on the fundamental Conventions, paragraph 701). The Committee asks the Government to provide information on the measures taken to ensure that job evaluations carried out to determine rates of pay, in the public and private sectors, are objective and free of any gender bias.

Enforcement. The Committee notes the Government’s indication, in the report it submitted to the CEDAW in April 2021, that the revised Non-Discrimination Act makes it easier for authorities to take action on discrimination experienced by women (CEDAW/C/FIN/8, para. 12). It also notes the conclusions of a study published in November 2020 as part of the “Aidosti yhdenvertaiset” project assessing the effects of the 2015 reform of the Non-Discrimination Act, which underlined the lack of resources of officials and its effect on the under-reporting and partial non-identification of discrimination. It further notes that the UN Committee on Economic, Social and Cultural Rights recommended to: (a) investigate reports of breach of provisions on remuneration in collective agreements and increase labour inspection in sectors of the economy where such violations are likely to occur: (b) improve complaints mechanisms in these sectors to make them easily accessible; (c) assist victims in obtaining redress; and (d) ensure that contravening employers, even when they are based abroad, are subject to sanctions (E/C.12/FIN/CO/7, 30 March 2021, para. 26). The Committee requests the Government to provide information on:

• (i)the number, nature and outcome of cases concerning equal remuneration for men and women for work of equal value dealt with by the competent administrative authorities and the courts; and
• (ii)the measures taken or envisaged to reinforce labour inspections monitoring systems, especially with a view to detect violations of the principle of the Convention.

Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

The Committee notes the observations of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Unions for Professional and Managerial Staff in Finland (AKAVA) and the Finnish Confederation of Professionals (STTK) (hereinafter referred to as “the trade unions”), and of the Federation of Finnish Enterprises (SY), the Confederation of Finnish Industries (EK) and the Local Government and County Employers (KT), attached to the Government’s report.

Articles 1–3 of the Convention. Gender pay gap. Scope of comparison. The Committee notes the Government’s acknowledgement, in its report, that the gender pay gap has decreased very slowly, from 17.2 per cent in 2010, to 16.8 per cent in 2015 to 15.8 per cent in 2020. The Government explains that equal pay is promoted through legislation, the tripartite Equal Pay Programme (2020–23) and government research and development projects. It recognizes that previous Equal Pay Programmes (2007–10, 2010–15 and 2016–19) have not been very successful in reaching their main goal. The current Programme (2020–23) promotes gender impact assessments of collective agreements and pay systems that support equal pay and pay awareness, supports the reconciliation of work and family life and dismantles the gendered segregation of the labour market. The Committee notes that, on 1 September 2022, the Ministry of Social Affairs and Health launched an overall assessment of the equal pay measures introduced, including the tripartite Equal Pay Programme 2020–23. It also notes the Government’s statement that one solution it is currently exploring is pay transparency. A tripartite working group, appointed under the auspices of the Ministry of Social Affairs and Health, prepared amendments to the Act on Equality between Women and Men in order to increase pay transparency in all sectors, the objective being to prevent gender-based pay discrimination and to promote equal pay. The Government indicates that, unfortunately, this process was interrupted due to diverging views on the proposal among government parties. It refers to ongoing initiatives on pay transparency at the European Union level. It also points out that the most challenging obstacle in combating the gender pay gap is the gender segregation of the labour market: in 2019, the proportion of workers in “even occupations” (meaning occupations with 40 to 59 per cent male or female wage earners) was only 10.1 per cent (it was 13.1 per cent in 2010). It cites two projects on the subject: (i) “Dismantling segregation – Tools for a more equal working life (2021–2023)”, in the context of which a policy brief and toolbox for decision-makers on the more permanent methods of dismantling occupational segregation will be prepared; and (ii) “Working careers and occupational segregation behind the gender pay gap (2022–2024)”, a research project which aims to map differences in careers and career paths and their effect on pay differences, with a view to laying the foundation for developing careers and occupational structures on a more equal basis. The Committee notes the Government’s indication that there is considerable variation in the scope and quality of equality plans and pay surveys carried out in the public and private sectors. In most cases, comparisons are made between employees doing the same work. Comparisons between employees covered by different collective agreements are rare. The Committee also notes the Government’s indication that an extensive research and development project, entitled “Work of Equal Value 2021–2022” is being carried out, which examines “how the assessment of demands of the work should be standardized between the different sectors and occupations”, so as to better recognize the demands of female-dominated sectors and occupations, with a view to developing payroll systems that could better support equal pay for work of equal value.

The Committee notes that, in their observations, the social partners all agree that gender segregation of the Finnish labour market is a serious issue and mention the unequal uptake of family leave as a reason for the gender pay gap. The trade unions deeply regret the suspension of the process towards amending the Act on Equality between Women and Men and consider that increasing wage transparency and improving access to pay information in cases of suspected discrimination would help to ensure pay equity. SY considers that the main reasons for the gender wage gap are the fact that women and men work in different industries and that the annual working hours of men are higher than those of women; and it is of the view that the gap can only be reduced by influencing educational choices and attitudes. EK considers that pay discrimination is not a significant problem in Finland and that the principle of “equal pay (equal pay for equal work)” is well implemented. According to EK, the issue of the pay gap is different from the principle of equal pay or pay discrimination and increasing pay transparency or pay openness would have no effect on promoting equal pay; it is rather necessary “to increase the attractiveness of different sectors and improve the position of women in the labour market, [and to ensure] a more even distribution of family leave and adequate day care services for children”.

The Committee notes that, in its concluding observations, the United Nations Committee on Economic, Social and Cultural Rights noted that the implementation of the Equal Pay Programme without binding measures would not significantly accelerate the reduction of the gender wage gap. It recommended that the Government establish time-bound targets for closing the gender pay gap and legislate on remuneration transparency, with a view to making it easier to challenge unequal pay (E/C.12/FIN/CO/7, 30 March 2021, paragraphs 20–21). The Committee also notes that according to the national Action Plan for Gender Equality 2020–23: (i) the gender pay gap will be narrowed during that period by increasing pay transparency through legislation, by Government-led research and development projects and by joint efforts undertaken by the Government and the labour market organizations; and (b) Finland is in favour of promoting equal pay by increasing pay transparency through EU legislation and considers it important to clarify the concept of “equal pay for work of equal value”.

Regarding the gender segregation of the labour market, the Committee refers to its comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). As for the gender pay gap and the scope of comparison taken into account, the Committee notes that the principle of equal remuneration for work of equal value seems to be understood and applied in a very narrow way in the labour market in Finland. It wishes to reiterate that comparing the relative value of jobs in occupations which may involve different types of skills, responsibilities, efforts or working conditions, but which are nevertheless of equal value overall, is essential in order to eliminate pay discrimination resulting from the failure to recognize the value of work performed by women and men free from gender bias (see the 2012 General Survey on the fundamental Conventions, paragraph 675). In order to address gender pay discrimination in a gender-segregated labour market where women and men are concentrated in different trades, industries and sectors, the reach of comparison between jobs performed by women and men should be as wide as possible, extending beyond occupational categories, collective agreements and enterprises. The Committee encourages the Government to take steps towards clarifying the meaning of “equal remuneration for work of equal value” and ensuring that a wide scope of comparison is being applied in all activities which affect the application of the principle of equal remuneration for men and women for work of equal value, including equal pay surveys. It also asks the Government to provide information on whether and how it assesses the “equal value” of public employment jobs. The Committee requests the Government to continue providing information on the evolution of the gender pay gap and any measures aimed at its reduction, especially how the issue of occupational gender segregation is being addressed. It also asks the Government to provide information on the results of the overall assessment of the equal pay measures launched by the Ministry of Social Affairs and Health on 1 September 2022, as well as on the concrete outputs produced by the following projects: “Work of Equal Value 2021–2022”, “Dismantling segregation – Tools for a more equal working life (2021–2023)”, and “Working careers and occupational segregation behind the gender pay gap (2022–2024)”.

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

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

The Committee notes the observations made by the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Finnish Confederation of Finnish Industries (EK) attached to the Government’s report.

Article 3 of the Convention. Objective job evaluation. In its previous comments, the Committee noted that according to the research project “Equal Pay, Equality and New Pay Systems” (SATU), the introduction of new pay systems resulted in a narrowing of the gender wage gap only among employees who earn the highest wages or those in the highest level positions and had a more prominent impact in the public and municipal sectors than the private sectors. The project “effectiveness of evaluating the demands of work, employee competencies and personal performance in Finland” (TAPAS) yielded information on the significance, applications and problems in the development of pay systems. The project produced a practical guide for equal pay, which compiles observations from workplaces in the project and provides instructions and recommendations on a general level. The Committee further notes the Government’s indication that results of the TAPAS and SATU projects have been disseminated through various events. The Committee also notes the project of 2013–14 surveying the development needs of pay systems in private service industries in light of the Government’s indication that the private sector is lagging behind in the development of pay systems. The Committee asks the Government to provide information on any further analysis of and follow-up to the findings of the SATU project. The Committee further requests the Government to provide information on the TAPAS guide’s impact and practical use. It also requests the Government to provide information on the findings of and any follow-up activities to the project surveying the development needs of pay systems in private service industries.

Public sector. With respect to the public sector the Committee notes that according to a working conditions survey by Statistics Finland, 47 per cent of municipal sector wage earners and 91 per cent of state wage earners reported that their pay system was based on job grade in 2013. Since 2003, the State has increased job grade evaluation in particular. According to AKAVA, new pay systems have succeeded in reducing pay gaps in the public sector, particularly in positions with the highest competence requirements, however, considerable differences remain between the wages of men and women working in middle management. From 2003 there has also been an increase in the use of job grade evaluation in the municipal sector from 28 per cent to 47 per cent. However, the situation has remained unchanged since 2008. The evaluation of personal performance was applied to 86 per cent of wage earners in the state sector and 33 per cent for the municipal sector in 2013. In the municipal sector, the introduction of new pay systems has slowed in recent years. According to the overall assessment of the Equal Pay Programme (2010–14), changing pay systems is often an extensive exercise and its preparations may take several collective agreement terms. It also requires financial investment. The Committee notes the Government’s indication that there is no comprehensive, reliable data on the number of wage earners in the scope of new pay systems. The Committee asks the Government to continue providing updated information on the progress made in the municipal sector and the impact of the competence and performance based pay systems on equal pay. It also asks the Government to provide information on how the lack of comprehensive, reliable data on the scope of the new pay systems is being addressed.

Collective agreements. The Government reports that the centralized framework agreement of the labour organizations (2011–13) included entries on gender equality and equal pay and that a tripartite report on the functioning and development needs of pay surveys was based on the framework agreement. The Committee however, notes that the industry specific collective agreements signed in 2011 in line with the centralised framework agreement did not include equal pay items of their own. Furthermore a centralised two-year Pact for Employment and Growth was signed in 2013. Industry-specific collective agreements following the centralised Pact for Employment and Growth signed in 2013 did not include separate equal pay items. The Government indicates that local pay arrangements have increased and their relative share of pay increases have grown. Furthermore, the information Committee on Cost and Income Developments, established by the Ministry of Finance, compiled a report in late 2013 on the promotion of equal pay through collective agreements, and has assessed the effects of agreement increases on the gender pay gap in 2010–12. The Committee requests the Government to continue providing concrete information on the impact of centralised and industry level collective agreements as well as the increase in local pay arrangements on equal pay. The Committee further requests the Government to provide a summary of the findings of the Committee on Cost and Income Development in their 2013 report. It also requests the Government to indicate any steps taken, in cooperation with the social partners, to promote the inclusion of separate equal pay items in industry-level collective agreements and the results achieved.

Enforcement. The Committee notes that the supervisory system for the Equality Act, comprising the Ombudsperson for Equality and the Anti-Discrimination and Equality Board, has been strengthened through the Act on the Amendment to the Act on Equality between Women and Men (1329/2014). The Government indicates that the independent status of the Ombudsperson for Equality has been reinforced and that there has been administrative restructuring. The Government also indicates that the number of cases handled by the Ombudsperson for Equality from 2012–14 varied between 152 and 211. About half of the cases related to discrimination in working life and many of these concerned equal pay. Cases concerned both basic pay and various kinds of bonuses and often concerned the effect of parental leave on wages. The Government also indicates that the supervision of pay discrimination reveals that the principle of equal pay is understood in a very narrow way in many workplaces in Finland. Accordingly, employers may argue that it is not possible to compare wages between employees placed at different pay levels. Furthermore, the Government indicates that the Ombudsperson for Equality has very limited resources for carrying out the task of monitoring the obligation of carrying out equality planning, and more resources are needed for this task. While noting the changes made to the supervisory system of the Equality Act, the Committee asks the Government to provide information on the Ombudsperson’s position regarding the scope of comparison between jobs and the outcome of key cases concerning equal remuneration for work of equal value. The Committee also requests the Government to continue providing information on the number, nature and outcome of cases concerning equal remuneration for men and women for work of equal value decided by the competent administrative authorities and the courts. It also asks the Government to provide information on how it addresses the problem of the Ombudsperson’s lack of resources to monitor the obligation to carry out equality planning.

Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

The Committee notes the observations by the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Finnish Confederation of Professionals (STTK), and the Confederation of Finnish Industries (EK) attached to the Government’s report.

Articles 1 and 2 of the Convention. Gender pay gap. The Committee recalls the objective of the tripartite Equal Pay Programme (2006–15) which was to reduce the pay gap to 15 per cent by 2015. The Committee notes from the Government’s report that the difference in pay between men and women decreased to 17 per cent in 2011 and has remained stagnant between 2012 and 2015. According to the overall assessment of the Equal Pay Programme the stagnation in the gender pay gap is due to a period of economic difficulty in Finland and smaller wage increases compared to previous years. The Committee notes that, according to EK and AKAVA, labour market segregation remains the main reason for the gender pay gap. In this connection the Committee notes that from 2004–14, the change in the proportion of workers in “even occupations”, meaning occupations with 40–59 per cent male or female wage earners, has been almost non-existent. In 2012, the proportion of wage earners in “even occupations” was 13 per cent of all wage earners. According to EK, addressing occupational segregation is the only sustainable measure to tackle the difference in average earnings. The Committee recalls that the Government’s Gender Equality Programme (2012–15) aims to reduce gender segregation in education, career choices and the labour market and that several initiatives have been taken in furtherance of this aim. In this connection the Committee refers to its comments under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). Noting the Government’s intention to implement the Equal Pay Programme until 2025, the Committee requests the Government to continue providing information on the evolution of the gender pay gap and any measures aimed at its reduction, especially how the issue of occupational gender segregation is being addressed. The Committee also asks the Government to provide summaries of any reviews of the Equal Pay Programme.

Equality plans and equal pay surveys. The Committee notes from the Government’s report that according to a survey undertaken by the central labour market organisations in 2012, the coverage of equality planning has increased. Yet, the Government indicates that coverage and quality of equality plans and pay surveys need improvement. The Government indicates that the Act on the Amendment to the Act on Equality between Women and Men (1329/2014) amended the provisions of the Act on Equality between Women and Men (609/1986) regarding the content of equality plans and pay surveys. Now, personnel representatives shall have sufficient opportunities to participate in and influence the drafting of the equality plan. If pay surveys reveal unfounded pay differences between men and women, these must be analysed and accounted for. If the pay differences are unfounded, the employer shall take corrective action. The Committee notes, however, the Government’s indication that in carrying out pay surveys, wages are usually only compared between employees with the same occupational title or employees in the same task groups and that it remains to be seen whether the scope of pay comparisons will be extended beyond the current situation. The Committee asks the Government to continue to provide information, including statistics, on the coverage of equality plans and pay surveys in workplaces and to monitor and provide results on their impact on the gender pay gap in the workplace in light of the amendments to the Equality Act. The Committee also asks the Government to provide information on the scope of pay comparisons used in pay surveys and in this context would like to refer to its comments regarding scope of comparison.

Scope of comparison. Repeatedly, the Committee has asked the Government to take action to enable a broader scope of comparison in the context of determining whether there has been compliance with the principle of equal remuneration for men and women for work of equal value. The Committee recalls its previous comments noting that, according to survey results, only 17 per cent of the workplaces had conducted comparison of wages of men and women across the boundaries set by collective agreements. The Committee notes that supervision of pay discrimination indicates that the principle of equal pay is understood in a very narrow way in many Finnish workplaces, employers sometimes claiming that it is not possible to compare wages between employees placed at different pay levels. The Committee notes that the equal pay provision in the Act on Equality between Women and Men (609/1986) does not contain any guidance or clarification as to the meaning of work of equal value. The Committee recalls that comparing the relative value of jobs in occupations which may involve different types of skills, responsibilities or working conditions, but which are nevertheless of equal value overall, is essential in order to eliminate pay discrimination resulting from the failure to recognize the value of work performed by women and men free from gender bias (see 2012 General Survey on the fundamental Conventions, paragraph 675). In order to address gender pay discrimination in a gender segregated labour market where women and men are concentrated in different trades, industries and sectors the reach of comparison between jobs performed by women and men should be as wide as possible, extending beyond occupational categories, collective agreements and enterprises. The Committee encourages the Government to take steps towards clarifying the meaning of equal pay for work of equal value and ensure that a wide scope of comparison is being applied in all activities which affect the application of the principle of equal pay for men and women for work of equal value, including equal pay surveys.

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

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

The Committee notes the observations by the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Finnish Confederation of Salaried Employees (STTK), and the Confederation of Finnish Industries (EK) attached to the Government’s report.

Article 3 of the Convention. Objective job evaluation. The Committee notes the Government’s indication that the analyses established by the research project “Equal pay, equality and new pay systems” (SATU), which was completed at the end of 2010, showed that the introduction of a new pay system provided only limited opportunities for reducing the gender pay gap; while the new pay systems have most clearly narrowed the gender pay gap among employees who earn the highest wages or who work in the highest positions, no similar narrowing is yet to appear among the employees who earn lower wages or who work in lower level positions; the impact of the introduction of the new pay system is more prominent within the public and municipal sectors than in the private sector. The Committee also notes the Government’s indication that the project “Effectiveness of evaluating the demands of work, employee competencies and personal performance in Finland” (TAPAS), the main focus of which is to develop pay systems within the organizations, will continue until the end of 2011, and that this project is being carried out through workshops organized by 18 organizations; a practical guidebook “Equality for pay” was to be compiled in the autumn of 2011. The Committee asks the Government to provide information on any follow-up activities or research concerning the findings by the SATU research project, as well as on the results achieved by the TAPAS project. Please also provide information on the contents of the practical guidebook “Equality for pay” under the TAPAS project, and on its dissemination and impact.

With respect to the public sector, the Committee notes the Government’s indication that the public sector as a whole has adopted new pay systems, while the municipal sector has agreed to gradually introduce the systems; the capacity and resource availability of each municipality has impacted on each pay system reform. The Committee asks the Government to provide detailed information on the implementation and impact of competence and performance-based pay systems, as well as the progress made in the municipal sector, as well as relevant statistical information.

Scope of comparison. The Committee recalls its previous comments noting that, according to survey results, only 17 per cent of the workplaces had conducted comparison of wages of men and women across the boundaries set by collective agreements. It notes the Government’s indication that the Parliament’s Employment and Equality Committee is of the view that an amendment should be made to the Equality Act (Act on Equality between Men and Women (609/1986)) to oblige comparisons across the boundaries set by collective agreements, and that the Act should state more clearly that the definition of remuneration includes various additional forms of payment. In this connection, the Committee notes that the EK indicates that in practice it is impossible to compare the value of jobs across different workplaces or different collective agreements. The Committee asks the Government to provide information on any follow-up action, with the cooperation of the social partners, to the Parliament’s Employment and Equality Committee’s recommendation, with a view to enabling a broader scope of comparison in the context of determining whether there has been compliance with the principle of equal remuneration for men and women for work of equal value, particularly where women are more heavily concentrated in certain sectors.

Collective agreements. The Committee notes the Government’s indication that, pursuant to the collective agreement for governmental employees for 2010–12, it was agreed that the equal pay allowance would be added to a specific target sector in the amount of 0.20 per cent starting from 1 May 2011, aimed at pay equality; for example in 2010, the target was sectors predominantly occupied by women requiring highly educated workers. It also notes the Government’s indication that according to a survey on the impact of collective bargaining on the gender pay gap in 2007–10, the gender pay gap throughout the labour market was reduced by 1 per cent. The Committee asks the Government to continue to provide information on the equal pay allowance in the public service, the use of collective agreements to promote equal remuneration for men and women for work of equal value, and on the impact of the sectoral collective bargaining system on differences in pay between men and women.

Parts III and IV of the report form. Enforcement. The Committee notes that the STTK indicates that due to insufficient resources, efficient and systematic law enforcement in the area of equality in employment is hampered. The Committee asks the Government to provide information on any steps taken to improve enforcement in the area of equality in employment. The Committee also asks the Government to continue to supply information on the number, nature and outcome of cases concerning equal remuneration for men and women for work of equal value decided by the competent administrative authorities and the courts.

Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

The Committee notes the observations by the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Finnish Confederation of Professionals (STTK), and the Confederation of Finnish Industries (EK) attached to the Government’s reports.

Gender pay gap. The Committee notes from the Government’s report that the difference in pay between men and women was 17.9 per cent in 2011, and that according to the Government the gender pay gap has decreased, even if it has not reached the tripartite equal pay programme’s target of narrowing the gender pay gap to 15 per cent by the year 2015. Payment by results (bonuses) has had an influence on the gender pay gap especially during the recent recession, and the Parliament’s Employment and Equality Committee is of the view that the Equality Act (Act on Equality between Men and Women (609/1986)) should state more clearly that the definition of remuneration includes various additional forms of payment. SAK, STTK and AKAVA indicate that only 11 per cent of female AKAVA members received a performance bonus in 2010, while 27 per cent of male members received such a bonus. The Committee also notes the Government’s indication that labour market segregation remains the main reason for the gender pay gap, and in this context the Committee notes the information provided in the Government’s report under the Discrimination (Employment and Occupation) Convention, 1958 (No. 111). In this connection, the Committee notes the observation of the STTK that the objective under the equal pay programme to increase the number of people employed in “gender-equal job positions” (where the share of women and men is between 40–59 per cent) to one fifth in 2012, is unlikely to be achieved. The Committee asks the Government to refer to the comments made under Convention No. 111 on the issue of occupational gender segregation. It also asks the Government to indicate any measures taken in the context of the economic recession to implement the equal pay programme, and the impact of such measures at national, sectoral and workplace level. Please provide information on any other measures aimed at decreasing the gender pay gap, as well as the fullest possible statistical data on differences in men’s and women’s earnings with a view to assessing progress made. Please also provide information regarding any steps taken to amend the Equality Act to clarify that “remuneration” includes various forms of additional payments.

Equality plans and equal pay surveys. The Committee recalls its previous comments concerning the implementation gaps of equality pay surveys under the Equality Act. It notes the Government’s indication that according to a governmental survey in 2008–09, compliance with the obligation to draft equality plans in the workplace remains insufficient, and the quality of plans and pay survey requires improvement. In this connection, a series of articles drafted by the Ministry of Social Affairs and Health on equality planning in the workplace were effectively distributed through organizational publications and professional journals; in 2010, the Ministry and employers’ and workers’ organizations jointly produced an extensive set of training materials on equality planning for the workplace. The Committee notes that SAK, STTK and AKAVA consider that the employer’s obligation to analyse pay surveys should be included in the legislation. In this connection, the Government indicates that a tripartite working group appointed by the Government to examine the functionality and development needs of pay surveys completed its work in June 2012, and proposed updating the training on equality plans and pay surveys. It also notes the Government’s indication that Parliament placed an emphasis on securing employee representatives’ right to access to information in connection with pay reviews. It further notes the summary provided by the Government of the report on the functionality of the Equality Act, which includes the description of the obligations related to equality plans, as well as issues concerning the implementation of the Act and access to pay data. The Committee asks the Government to provide specific information on the content of the training on equality planning for the workplace, as well as the results achieved. It also asks the Government to indicate how the participation of employees and their organizations is ensured in the development of equality plans and implementation of pay survey. The Committee also asks the Government to provide further information on the actual impact of the pay survey on reducing gender pay differentials in the private and public sectors, including relevant statistical data, and information on the number of equal pay surveys that have resulted in specific follow-up action, including corrective action where pay discrimination was found.

Indirect discrimination with respect to remuneration. The Committee recalls the concerns expressed by AKAVA that young educated women are employed more often than men on a fixed-term basis particularly in the public sector, and that career progress for highly educated women employed on a fixed-term basis is as much as ten years behind that of men with corresponding levels of education. The Committee notes from the statistical information on the central Government fixed-term employment provided by the Government that, while the proportion of women is 52.6 per cent, the difference in pay between men and women was 8.7 per cent in 2009, which is one percentage point decrease from the previous year. The Committee asks the Government to indicate how the issue of female concentration in fixed-term employment is addressed in the context of indirect discrimination with respect to remuneration, and to identify any gaps in the legislation on equal remuneration in this respect. It also asks the Government to continue to provide statistical data, disaggregated by sex and age, on the employment of men and women on fixed-term contracts in the public sector, and their corresponding levels of remuneration.

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

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

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.

Article 3 of the Convention. Objective job evaluation. With respect to the projects on the development of pay systems, undertaken with financial support from the European Social Fund, the Committee notes that the “Equality for pay, TAPAS 2008–11” of the Helsinki University of Technology aims to develop pay systems on the basis of job evaluation and the employee’s performance supporting equal pay for 16 to 20 organizations from different industrial and collective agreement sectors; results will be complied in a practical guidebook. The survey under the project “Equal pay, equality and new pay systems – SATU 2008–10” of the Labour Institute for Economic Research, on the impact of the new pay systems on gender differences in pay at various stages of individual careers and lives in the public and the private sectors, is due to be completed in 2010. The Committee asks the Government to provide a summary of the findings of the research undertaken under SATU and TAPAS projects, as well as a copy of the practical guidebook on pay systems supporting equal pay under the TAPAS project.

With respect to the public sector, the Committee notes that according to KT the basis for determining position-specific salaries in collective labour agreements in civil servant salaries and other collective labour agreements in the municipal sector is primarily the degree of competence required for the position, taking into account competence factors such as knowledge, skills, the impacts and responsibilities involved and working conditions. A survey by EK showed that all collective agreements in the local municipal sector included remuneration systems based on the assessment of the competence requirements of the positions. In some 90 per cent of the cases, the assessment system in use was based on a shared view of the employer and the employee representative, and 80 to 90 per cent of the position-specific salaries were based on a systematic assessment of position-specific competence requirements. The Committee asks the Government to continue to provide detailed information on the implementation and impact of competence and performance-based pay systems in the public sector, including relevant statistical information.

Scope of comparison. The Committee notes from the Government’s report that the surveys conducted on equal pay reviews indicate that 65 per cent of workplaces that have conducted an equal pay review had compared the wages of women and men in various professional categories, while 45 per cent had compared wages of women and men in various employee categories; one quarter had compared wages of women and men in different departments. The instructions issued by the Ombudsman for Equality for comparing the wages of men and women across the boundaries set by collective labour agreements are, however, proving to be a challenge, and survey results indicate that only 17 per cent of the workplaces had conducted such a comparison. The Committee further notes that a survey by EK on collective agreements in the local municipal sector showed that for the purpose of assessing position-specific competence requirements, the basis of comparison remuneration systems was primarily conducted within the salary group; in some 10 to 22 per cent of the cases remuneration systems were compared across salary groups, within the framework of the entire sector. For the purpose of ensuring equal remuneration for work of equal value, the Committee asks the Government to provide information on the measures taken or envisaged, together with the social partners, to enable a comparison of jobs performed by men and women on the broadest possible basis, including comparisons across different collective agreements, across salary groups and across different sectors.

Impact of the collective bargaining system on equal pay. The Committee notes that the Finnish collective bargaining system has moved from centralized income policy settlements to sectoral collective bargaining. It also notes that according to EK, all collective labour agreements on civil servant salaries and other collective labour agreements in the municipal sector valid from 1 October 2007 to 31 of January 2010 include a component on promoting equal pay, and that following the collective bargaining round of 2007, the Government made additional contributions towards pay increases in sectors predominantly employing women in the public sector, in particular care personnel and librarians. The Committee further notes that both the Government and the social partners find it too early to assess the impact of the collective bargaining round on pay equality between men and women. The Committee asks the Government to continue to provide information on contributions towards pay increases in the public sector, the use of collective agreements to promote equal remuneration for men and women for work of equal value, and on the impact of the sectoral collective bargaining system on differences in pay between men and women.

Enforcement. Parts III and IV of the report form. The Committee asks the Government to continue to supply information on the number, nature and outcomes of cases concerning equal remuneration for men and women for work of equal value decided by the competent administrative authorities and the courts.

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

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.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Article 3 of the Convention. Objective job evaluation. Development of difficulty-based pay systems. Recalling its previous comments concerning the introduction of pay systems that rely on difficulty-based job evaluation, the Committee notes that several central labour market organizations have stressed the need to develop such pay systems as an important means of addressing the remaining gender pay gap. Noting from the Government’s report that a broad-based research and development programme concerning pay systems will start in 2008 with financial support from the European Social Fund, the Committee asks the Government to provide detailed information on the progress made in the implementation of this programme and to indicate conclusions or recommendations formulated and the results achieved.

As regards the public sector, the Committee notes the Government’s indications that a study conducted by the Helsinki University of Technology on pay systems based on job and competence evaluations and their effects on pay differences between the sexes in the government sector showed that such pay systems can reduce gender pay gaps, even though this did not occur within all government institutions. The Central Organization of Finnish Trade Unions (SAK) states that the Government’s new pay system was going in the right direction. However, there were difficulties in ensuring that implementation was consistent as between one government office and another. According to the Finnish Confederation of Salaried Employees (STTK), approximately 95 per cent of the new public sector pay system has been implemented so far. The STTK considers that the system’s impact on women’s wage development seemed to be positive, but noted that it is too early to assess the reform’s gender impact. The Committee asks the Government to continue to provide detailed information on the impact of the operation of difficulty-based pay systems in the public sector, in combination with competence and performance based pay, on the gender pay gap in public sector employment, including relevant statistical information.

Parts III and IV of the report form. Enforcement. The Committee asks the Government to supply information on the number, nature and outcomes of cases concerning equal remuneration for men and women for work of equal value decided by the competent administrative authorities and the courts.

Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

The Committee notes the Government’s report and the comments of the Central Organization of Finnish Trade Unions (SAK), the Finnish Confederation of Professionals (STTK), the Confederation of Unions for Professionals and Managerial Staff in Finland (AKAVA), the Confederation of Finnish Industries (EK), the Commission for Local Authority Employers, and the State Employer’s Office (VTML), included therein.

Assessment of the gender pay gap. The Committee notes from the Government’s report that between June 2005 and May 2007, the gender pay gap calculated on the basis of average monthly earnings (regular monthly working hours) has remained unchanged at 20 per cent. According to Eurostat, there has also been a 20 per cent gap between men’s and women’s average gross hourly earnings since 2002. SAK expressed concern that pay differentials have increased in certain sectors. The Committee previously noted that the equal pay programme, which was adopted based on recommendations made by a tripartite working group in 2005, aims at closing the current gender pay gap (average monthly earnings) by at least 5 per cent by 2015. The programme addresses the gender pay gap through various measures regarding pay systems, occupational segregation based on sex, equality planning, reconciliation of work and family life and corporate social responsibility. The Committee also notes the concerns expressed by some trade unions over delays in the programme’s implementation. The Committee asks the Government to provide detailed information on the implementation of the measures envisaged under the equal pay programme and to continue to provide detailed statistical information that will allow the Committee to assess the progress made in closing the gender pay gap.

Article 2 of the Convention. Application in practice. Equality plans. The Committee notes that according to a survey carried out by SAK, only 35 per cent of the enterprises surveyed had undertaken a pay survey as required under the Act on Equality between Men and Women. EK indicated that by autumn 2006, some pay surveys had been conducted by a majority of their members. According to SAK and AKAVA the legislation was not sufficiently clear as to how these surveys should be conducted and how work of equal value should be determined, particularly in cases where employees of the same employer were employed under different collective agreements or pay systems. STTK states similarly that equal pay could not be realized unless equally demanding jobs and their remuneration can be compared across collective agreements. SAK and AKAVA stress that access to the necessary pay information was unsatisfactory. According to EK, pay surveys were carried out using existing personnel or task-related classifications and no major difficulties were reported, while according to the Ombudsperson, data protection issues may be an obstacle. EK considered that equal pay is best promoted through up to date and fair pay systems.

In its report, the Government states that following the entry into force of the amendments to the Act that introduced pay surveys in the context of the adoption and implementation of equality plans, the Ombudsperson focused on the provision of information, advice and training. In 2006, the Ombudsperson began consultations with labour market organizations in order to address practical problems and difficulties in equality planning, and particularly as regards pay surveys. When workplaces had included concrete objectives concerning the removal of gender pay differentials in equality plans, it was found that there was more likelihood of progress. The Committee welcomes the efforts made by the Government and the social partners to promote equal remuneration for men and women for work of equal value through pay surveys under the Act on Equality between Men and Women, and asks the Government to continue to provide information on the implementation of pay surveys and their actual impact on reducing gender pay differentials, as well as on the measures taken to ensure that all workplaces required to undertake such surveys under the Act comply with their obligations. The Committee also asks the Government to provide further information on the measures taken to:

(i)    promote participation of employees and their organizations in equality plans and pay surveys;

(ii)   ensure appropriate access to pay data with a view to identifying discriminatory gender pay differentials; and

(iii) ensure that for the purpose of ensuring equal remuneration for work of equal value, jobs performed by men and women can be compared on the broadest possible basis, including comparison across different collective agreements.

Collective agreements. The Committee notes that SAK considers collective bargaining significant for addressing gender pay differentials, including through centralized collective bargaining and equality increments. According to STTK, the Government is committed to making additional contributions towards pay increases in public sector fields dominated by women. The Committee further notes STTK’s comment that the new collective agreement for the finance industry (2007–11) was an example of a collective agreement addressing equal pay concerns. The agreement includes a “salary discussion model” under which salary increases are partially performance based. The agreement also provides for increased information on salaries and job difficulty evaluation. Finally, the Committee notes that the memorandum adopted by the central labour market organizations in the framework of the round table on equality recommends that all parties to collective agreements assess, as and when necessary, how their agreements have impacted in differences in pay between women and men. The Committee looks forward to receiving information on the measures to implement this recommendation, and requests further information and examples on how collective agreements are being used to promote equal remuneration for men and women for work of equal value.

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

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

1. The Committee notes the comments of the following workers’ and employers’ organizations, which where included in the Government’s report: the Confederation of Finnish Industries (EK), 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), the Commission for Local Authority Employers (KT) and the State Employer’s Office (VTML).

2. Incomes policy agreement. The Committee notes from the Government’s report that one of the key objectives of the latest incomes policy agreement (2005–07) is the reduction of pay differentials between men and women. The EK, SAK, STTK and AKAVA indicate that efforts are under way to establish a common method of difficulty assessment with the intention of developing pay systems based on the difficulty of the tasks involved. The Committee would welcome receiving any information on the effects of the incomes policy agreement and the common method of difficulty assessment in reducing pay differentials between men and women.

3. Collective agreements. The Committee notes that, under the amended Act on Equality between Men and Women, pay comparisons should also be made across collective agreements (The Act on Equality between Women and Men 2005, Ministry for Social Affairs and Health, Gender Equality Publications, 2005:2, page 16). The Committee asks the Government to provide information on any efforts taken or envisaged to promote the application of the principle of equal remuneration for men and women for work of equal value through collective agreements, including information on the promotion of job evaluation and classification that facilitate the application of the principle within and between different sectors of employment.

4. Public sector pay systems. Recalling its previous comments concerning the introduction of new difficulty-based pay systems for government employees, the Committee notes from the Government’s report that, as of 30 November 2005, the new systems apply to all employees concerned. The Government indicates that at this stage it was difficult to assess the effects of the new system on women’s and men’s pay and the gender pay gap. The Committee asks the Government to take the necessary steps to monitor the effects of the new pay system on the remuneration received by male and female government employees and to provide information on the results of such an analysis in its next report. Noting KT’s indication that new municipal pay systems are being developed which will be based on personal skills and job demands, the Committee asks the Government to keep it informed on the progress made in this regard and on the manner in which the principle of equal remuneration for work of equal value is being taken into account in this context.

5. Gender-based occupational segregation. Further to its previous comments on this issue, the Committee notes EK’s and KT’s concerns regarding the persistent high level of gender-based occupational segregation. It notes from the Government’s report that a working group, comprised of representatives from the school and university systems, the Ministry of Education, the Ministry of Labour, and the social partners, in early 2004, recommended several changes concerning the content of education, training for teachers, and student counselling, with a view to promoting gender equality and reducing segregation in training and education. The Committee asks the Government to provide information on the follow-up action taken to the recommendations of this working group and on the specific measures to reduce horizontal and vertical occupational segregation within the equal pay programme, including social partner initiatives.

6. Part-time and fixed-term employment. With regard to part-time and fixed-term employment, the Committee notes the Government’s indication that the occupational safety and health authorities are responsible for supervising the application of section 2 of the Employment Contract Act which prohibits discrimination on the basis of part-time or fixed-term employment. The Committee also notes that the Minister of Labour has commissioned a study on the prevalence of fixed-term employment, examining the issue from a perspective of gender equality and the requirements of the Act on Equality between Women and Men. The Committee asks the Government to provide information on the findings of this study and on any other measures taken to further assess and address the impact of part-time and fixed-term employment on the gender pay gap. Please also indicate whether the occupational safety and health authorities have dealt with any cases concerning unequal treatment in respect of remuneration of part-time or fixed-term employees and, if so, the outcome of such cases.

Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

1. In its previous observation, the Committee noted that the gender pay gap in Finland had remained unchanged in recent years and asked the Government to provide information on the measures taken to identify and correct pay differentials due to the undervaluation of work predominantly performed by women. In this regard, the Committee notes from the Government’s report that the Government’s Action Plan for Gender Equality 2004-07 sets out a number of objectives and measures aimed at reducing gender-based pay differentials, in cooperation with workers’ and employers’ organizations. It notes with interest that, as provided for in the Action Plan, the previous equality provisions have been strengthened by the Act amending the Act on Equality between Men and Women (Act No. 232/2005). The Committee notes in particular that under the amended Act on Equality between Men and Women, equality plans, which are obligatory for private and public undertakings with more than 30 employees, must include information that enables workers and employers to monitor the equality situation in the enterprise concerned, i.e. details concerning the employment of men and women in different jobs and a survey of the grade of jobs performed by men and women, the remuneration for those jobs and differences in pay (section 6a(2)). Further, equality plans must set out measures to achieve pay equality and a review of the impact of measures previously taken to this end. Under the Act, employers must also promote equitable recruitment of women and men in the various jobs and create equal opportunities for career advancement (section 6(2)). The Committee asks the Government to provide information regarding the following:

(a)   implementation and enforcement of the equal pay provisions of the amended Act on Equality between Men and Women, including information as to the activities of the Ombudsperson for Equality and the Equality Board to supervise compliance with the Act, as well as relevant court decisions;

(b)   progress made in the preparation and implementation of equality plans that address equal pay issues in accordance with the Act, indicating examples of  plans that have resulted in the reduction of gender-based pay differentials in the enterprises concerned; and

(c)   the manner in which compliance with the Act’s equal pay provisions is ensured through the promotion and use of objective job evaluation methods.

2. The Committee further notes that a tripartite equal pay working group was established with the task of preparing an equal pay programme to be implemented through tripartite cooperation. The working group completed its work in May 2005, proposing a comprehensive programme that provides for measures to be taken in a number of targeted areas, including measures to address horizontal and vertical occupational segregation by gender, women’s career development, equality planning, reconciliation of family and work responsibilities, pay systems, employment contract policies and statistics. The programme aims at closing the current gender pay gap of approximately 20 per cent, calculated on the basis of regular monthly working hours, by at least 5 per cent by 2015. The Committee asks the Government to provide detailed information on the measures taken under the equal pay programme in respect of each of the areas mentioned above and the progress made in achieving the target set for 2015. Noting that the Government’s report does not contain updated statistical information concerning men’s and women’s earnings, the Committee asks the Government to provide such information in its next report, as well as any further studies or analyses undertaken concerning the evaluation and elimination of the gender pay gap.

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

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

1. Further to its observation, the Committee notes with interest that section 6(4) of the new Constitution of Finland of 9 June 1999 stipulates that "equality of the sexes is promoted in societal activity and working life, especially in the determination of pay and other terms of employment, as provided in more detail by an Act". It further notes that the Ministry of Social Affairs and Health set up a tripartite committee to consider amendments and additions to the Act on Equality Between Men and Women (609/1986) (Equality Act), including items on equal pay and an investigation into the equality impact of the legislation. Noting that the tripartite committee has submitted a report in September 2002, but that no legislative initiatives have been taken to date, the Committee asks the Government to keep it informed of any developments in this regard.

2. With regard to the promotion of pay parity in atypical employment relationships, the Committee notes from the Government’s report that more women (17 per cent) than men (8 per cent) continue to be in part-time work and fixed-term employment contracts continue to be more common among women (20 per cent) than men (13 per cent). According to the Confederation of Unions for Academic Professionals (AKAVA) this especially adversely affects the pay situation of highly educated women. As much as 76 per cent of the young women of members of AKAVA employed by the State have fixed-term employment contracts and on average the pay of employees in fixed-term employment is lower than those with permanent employment contracts. The Committee notes in this regard that section 2(3) of Chapter 2 of the newly adopted Employment Contracts Act No. 55 of 2001, which explicitly refers to the provisions of the Equality Act, states that "without proper and justified cause less favourable employment terms than those applicable to other employment relationships must not be applied to fixed-term and part-time employment relationships merely because of the duration of the employment contract or working hours". The Committee asks the Government to provide information on the application and enforcement of the relevant provisions of the Employment Contracts Act and to indicate how they have impacted on the wage gap between men and women. Please also provide information on the measures taken to increase the ability of more highly educated women to compete on an equal footing with men for permanent contracts.

3. Further to the above, the Committee notes that the experience-based increment scheme applicable in the municipal sector, was modified in 2000 in accordance with the general collective agreement for municipal officials, and is now based on the duration of the employment relationship rather than on accumulating experience at work. This means that maternity and parental leave, care leave, sick leave and all other authorized absences are included in the calculation period for the increment. The Committee notes that since 2000, part-time work has been counted as equivalent to full-time work in the calculation of the experience increment, and that municipal employees on maternity or parental leave between 1996 and 2000 were awarded almost one extra year for the calculation of the increment. The Committee asks the Government to continue to provide information on how it ensures the application of the principle of the Convention to part-time employees and to indicate the impact of these measures on women’s pay in the sectors concerned.

4. Further to its observation, the Committee notes from the Government’s report that changes in occupational and sectoral segregation have been slow and that segregation in educational and training fields leads to occupational segregation in the labour market. The Committee notes the various activities listed in the Government’s report to reduce segregation in the labour market and educational and training fields, including the new initiatives that have been launched in 2002. The Committee asks the Government to continue to provide information on the measures taken to eliminate gender-based occupational segregation, in particular through vocational training and education initiatives, and their specific impact on the pay gap between men and women.

5. With regard to job evaluation, the Commission of Local Authority Employers (KT) states that job demands assessment has progressed in the municipal sector because the criteria used do not discriminate on the basis of gender. Furthermore, the current incomes settlement and the development programme for the municipal sector pay system for 2002-07 will promote improvements in local pay and continued job demands assessment, which will particularly benefit women in the sector. According to the Central Organization of Finnish Trade Unions (SAK), job evaluation is conducted in different sectors but no comprehensive study of the present situation is yet available. They suggest that trade unions study how indirect discrimination through collective agreements affect the position of men and women, allowing a comparison to be made between the benefits available to workers with atypical employment contracts and those available to permanent and full-time workers. The Committee notes in this regard that a research project sponsored by the labour market organizations entitled "Equal remuneration with pay system reforms - assessment of job demands and employee competence in Finland" aims to establish which kind of pay systems best support the narrowing of unfounded wage gaps between men and women and how pay systems can be developed to ensure equality. SAK further believes that the same job evaluation carried out in the municipal sector under the terms of a collective agreement should be used to compare the pay of employees working for the same employer under different collective agreements. AKAVA notes that the real impact of pay systems developed on the basis of job evaluation on pay equality has not been sufficiently studied and suggests that the State administration, where pay system reform based on job evaluation has progressed the most, examines the importance of job evaluation in promoting pay parity.

6. Further to the above, the Committee notes that the report of 2000 of the working group of the State Employers’ Office (VTML) investigating the pay system for government employees, indicates that a fair and motivating pay system is needed that gives more emphasis in pay calculations to the work performed, thus allowing change-responsive pay and greater efficiency. It also notes that currently 26 government departments and agencies have reached agreement on a new pay system and the Ministry of Finance provides assistance on the pay system reform to relevant departments and agencies. The Government’s report further indicates that the development of new pay systems for the State sector is scheduled for completion for the end of the current agreement period and that the reform of the Equality Act will promote job demands assessments and equal remuneration across collective agreements by including in equality plans the charting of the demands of men’s and women’s jobs and pay differentials. The Committee asks the Government to continue to provide information on the use of job demand assessment and the development of effective pay systems to ensure equality, and on the impact of the new pay systems on existing pay differentials in the government departments and agencies that have reached agreement on such a system.

7. The Committee notes the information received on the opinions issued by the Ombudsman concerning alleged pay discrimination. It notes in particular that in December 2000 a ruling was passed by the Helsinki District Court requiring the Federation of Special Service and Clerical Employees (ERTO) to award compensation to a female employee for wage discrimination. The Committee notes that in determining the amount of reimbursement, the court emphasized that an employees’ organization should be especially aware of the standards set in the employment legislation. Noting that ERTO has not taken steps to correct the wage discrimination since receiving the Ombudsman’s opinion, the Committee asks the Government to indicate in its next report the progress made in this regard, as well as to continue to provide information handled by the courts or the Ombudsman.

8. The Committee notes that while the collective agreements concluded in many sectors have emphasized the importance of having an equality plan, the introduction of equality plans has not reached adequate levels. It notes in this regard that the remit of the committee reviewing the Equality Act includes considerations how equality plans can be improved, including the question related to the possibility subjecting the employer’s neglect to draft an equality plan to legal sanction. The Committee asks the Government to continue to provide information on the manner in which it ensures the use of equality plans in the public and private sectors, and on the results achieved.

Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

1. The Committee notes the detailed information provided by the Government in its reports 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 (AKAVA), the Confederation of Finnish Industry and Employers (TT), the Employer’s Confederation of Services Industries in Finland (Palvelutyönantajat), the Commission of Local Authority Employers (KT), and the State Employer’s Office (VTML).

2. Further to its previous observations, the Committee notes that the gender wage gap has remained unchanged in recent years and that women’s average earnings in regular work were about 80 per cent of the equivalent earnings of men. It also notes from the study entitled Gender Wage Differentials in the Finnish Labour Market of 2002 that the gross wage differential is the lowest among manufacturing workers and local government workers (just under 20 per cent and just above 20 per cent respectively) and the highest for salaried manufacturing employees (over 30 per cent). The study indicates, however, that when excluding the smallest and most segregated occupational categories of manufacturing wage earners, the wage difference drops to 15 per cent. The central Government and private sector employees have a wage differential of approximately 25 per cent. The Committee notes that AKAVA provides more or less similar data on wage differentials in the public and private sectors, but that it indicates that it is impossible to draw direct conclusions from these figures about the real extent of pay discrimination because more accurate figures have to take into account information on sector, job title, job description, training and experience. AKAVA states that if the pay differentials due to differences in job title were removed, this alone would reduce the need to raise women’s average pay from 37 per cent to 18 per cent.

3. The Committee notes that the Government’s report and the abovementioned study indicate that half of the wage gap is due to differences in job descriptions and careers and the fact that women work in lower-paid sectors and occupations than those in which men work. Proportionately the biggest group of women lagging behind their male colleagues in terms of remuneration consists of well-educated and older women in demanding jobs, especially in the private sector. The differential in the municipal sector is largely explained by occupational segregation and the slightly lower educational attainment of women compared to men while, in the manufacturing industries, it is accruing age that leads to a widening gap between senior males and senior females. In the private sector, segregated selection into occupations generates a wage differential of almost 15 percentage points. The Committee notes that SAK, STTK, TT and Palvelutyönantajat all indicate that pay parity problems arise from the gender division by occupation and that a narrowing of the wage gap is possible only when imbalances in the gender ratio in different occupations are corrected.  However, TT and Palvelutyönantajat also state that studies on pay differentials between men and women in different service sectors should take into account the difficulty of work performed in each sector, which is important for comparing pay levels for the same work. They point out that studies carried out in the banking sectors indicate that the most significant explanatory factor was the difficulty rating of the job and that studies in the metal and engineering industries also concluded that by taking into account job difficulty and other factors, men’s pay was only 2-5 per cent higher than that of women.

4. The Committee notes in this regard that the application of the difficulty ratings for job evaluation purposes began in 2002 and that pay systems based on difficulty ratings and personal performance, and on the evaluation of these factors, are currently in operation in 26 government departments and agencies, covering 14 per cent of all government employees. However, it also states that no job evaluation system-based difficulty ratings are in use for senior salaried and professional personnel. The Committee asks the Government to continue to provide information on difficulty-based pay systems, including for senior personnel, and their impact on the wage gap between men and women.

5. The Committee notes from the information provided by the VTML and the Government that the collective agreements concluded for the state and municipal employees between 2001 and 2005 seek to reduce pay differentials by incorporating an equality allowance and a sectoral allowance. The VTML states that for the collective agreement concluded between the Ministry of Finance and the principal state employee organizations for 2003-05, the effect of the equality allowance for women was 0.21 per cent. The TT and Palvelutyönantajat indicate that the equality allowance based on incomes policy agreements is problematic for competitiveness, because it affects sectors in which labour costs rise faster than productivity. The sectors affected have a high proportion of low-income and women employees. They state that within the sectors, pay increases are no longer aimed at women or the lower paid, but are general increments paid to all, regardless of the employees’ gender or pay level. The STTK believes that equality allowances for women have a definite corrective effect on the pay differentials between female-dominated and male-dominated sectors, but that reducing pay differentials will require that job evaluation be extended to cover different sectors. The Committee asks the Government to continue to provide information on all efforts taken to identify and correct pay differentials between male-dominated and female-dominated sectors due to the undervaluation of work women perform or any other directly or indirectly related sex-bias factors.

6. Right to obtain information. The STTK states that ensuring pay equity requires that the right of shop stewards to obtain data be broadened to include the opportunity to obtain earnings statistics by pay category and gender from the employers. The KT indicates that the general municipal collective agreement requires that shop stewards be provided once a year with information on the basic salaries and job-specific salaries and individual-specific pay components of the personnel represented by them. The Committee notes that under the shop steward agreement between the Palvelutyönantajat and the SAK as well as the general agreement between the TT and the SAK, shop stewards have the right to obtain, either once a year or quarterly, data on the pay category and level and structure of earnings. However, the agreements provide that information on employee groups of fewer than six employees is not to be disclosed for reasons of privacy. The Committee also notes that the amendment of 26 January of 2001 to section 10(1) of the Equality Act provides that if there are reasonable grounds to believe that wage discrimination due to sex has occurred, the employer shall be obliged to disclose information on the wages and employment conditions of the persons concerned to the shop steward or the workers’ representative, who may reveal this information. It asks the Government to provide information on the practical application and enforcement of section 10(1) of the Equality Act, including with regard to employee groups of fewer than six employees.

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

Direct Request (CEACR) - adopted 2000, published 89th ILC session (2001)

1.  With respect to measures taken to reduce gender-based occupational segregation in the Finnish labour market, the Committee notes the work undertaken by the LUMA project to promote equal opportunities by increasing the number of girls and women studying mathematics, physics and chemistry and cultivating their interest in the technical professions. It also notes that a strategic project, "An equal labour market (2000-03)" will be launched within the framework of Finland’s National Action Plan for Employment for 2000, with the aim of influencing career placement mechanisms to achieve a greater balance of men and women in different fields. The Committee notes that the study will use research data and good practice to identify the key factors necessary for eliminating occupational segregation. The Committee also notes that the National Action Plan calls for the social partners to launch a three-year cooperation programme, including an information campaign, involving companies and schools to explore ways in which boys and girls could be influenced to take an interest in selecting non-traditional occupations. The Committee would be grateful if the Government would continue to keep it informed of the measures taken to reduce the wage gap between men and women and to eliminate occupational segregation in the Finnish labour market, and of the progress achieved.

2.  The Committee notes the Government’s explanation regarding the new provisions of the collective agreement for trade, which permit part-time employees to accumulate years of service in the same manner as full-time employees, enabling them to qualify for higher salary grades. The Committee also notes that the general collective agreement for municipal employees and officials, which came into force in 2000, places part-time work and absence from work due to family leave on a par with full-time work, for the purposes of determining pay supplements based on experience. Given the high numbers of women in part-time positions, as well as the fact that, at present, it is mostly women who take family leave, the Committee asks the Government to indicate the impact of these collective agreements on women’s pay in the sectors concerned.

3.  The Government indicates that an equality plan was in place in eight of Finland’s largest cities in 1997, but that there is no complete information on equality plans confirmed by local authorities. Proactive equality measures may be included in the occupational safety plan of action for a workplace pursuant to the Equality Act. The Equality Ombudsman and the occupational safety and health authorities have discussed how to promote equality in the workplace, possibly by having occupational safety and health inspectors raise the issue of equality planning in their annual inspections of occupational safety plans of action and by having the inspectors distribute a brochure on equality planning. The Committee notes that the two-year comprehensive incomes agreement ending in January 2000, contained a working life development programme, involving several working groups aiming to promote the implementation of equality between men and women in different ways. The Committee also notes the plan formulated by the Lappeenranta University of Technology, to increase the number of women students, as well as the plan by Fazer Suklaa Oy, which has, inter alia, increased training and versatility to encourage women to move to better-paid jobs. The Committee notes the copy supplied by the Government of the Equality Ombudsman’s equality planning guide, providing employers with guidelines and instructions on how to comply with their equal pay duties. The Committee would appreciate receiving information from the Government in future reports on developments in equality planning.

Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

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 (AKAVA), the State Employer’s Office (VTML) and the Commission for Local Authority Employers (KT).

1.  The Committee notes from the report that the employment situation in Finland has been improving for several years and that employment has increased for both men and women. The Government states that there is no significant difference between the unemployment rate for women and that for men; in 1999, the unemployment rate for women was 10.7 per cent as compared to 9.8 per cent for men. SAK states that the recession of the 1990s caused persistent long-term unemployment which has affected women, particularly older women, more than men.

2.  The Government indicates that the pay differentials between men and women have reduced slightly in the 1990s, due largely to the economic recession of the early 1990s which reduced "wage drift" in the private sector, as well as to the equality allowances contained in the comprehensive incomes policy agreements of the 1990s. The data supplied by the Government indicates that pay differentials between men and women have decreased in the municipal sector, where women predominate (78 per cent of municipal employees are women). In 1999, women in the municipal sector earned approximately 77 per cent of men’s average overall monthly earnings (compared to 75 per cent in 1996). The data provided indicates that, in terms of regular working hour earnings, women’s pay in 1999 was 80 per cent of men’s. The Government points out, however, that a detailed analysis of the municipal sector by job group shows that the pay differentials are in fact slight and that there are occupations where men earn less than women on average. The Committee notes from the report that, in state employment, women’s average earnings in 1998 were 79.3 per cent of men’s (compared to 79 per cent in 1993). In the metallurgical industry, women’s average hourly wage for regular working time in the second quarter of 1999 was approximately 86 per cent of the comparable figure for men, while women’s pay was about 95 per cent of men’s when compared by pay group. AKAVA states that the pay differentials between men and women have remained largely unchanged in the late 1990s, with AKAVA women earning 73 per cent of men’s average pay, in 1999.

3.  The Government attributes the pay differentials noted to a range of factors, depending upon the sector involved. It indicates that differentials in the municipal sector are due to a specialized labour market, education, age structure, amount of overtime worked and other factors. It attributes the differentials in the state sector to divisions in the wage market and to the placement of men and women in different jobs. The Government indicates that differentials in the metallurgical industry are due largely to job specialization. The VTML states that, in analysing the pay differentials between men and women, pay levels should be compared with job difficulty. According to the VTML, if job difficulty and other factors are taken into account, then the actual imbalance caused by gender would be 2 per cent. AKAVA attributes women’s lower earnings to the prevalence of women in atypical employment relationships (part-time and fixed-term relationships), where pay is substantially lower than average for permanent employees. It points out that half of all women under 30 have a fixed-term employment relationship and that 85 per cent of young women members of AKAVA employed by the State have a fixed-term relationship. The KT emphasizes that municipal employees have excellent agreement-based opportunities for family leave, sick leave and other leave of absence, which considerably increases the demand for fixed-term employees, particularly in the largest fields of the municipal sector, which include health care, social welfare and education. The Government indicates in the report that the development of equal opportunities in the labour market is complicated by the fact that atypical employment is far more common among women than men. In this context, the Government points to the amendments to Chapter 2a of the Employment Contracts Act on family leave, which were designed to clarify the family leave provisions and facilitate the taking of such leave. The Committee would be grateful if the Government would continue to provide information on measures taken or envisaged to promote wage parity for workers in atypical employment relationships, as well as the impact of the amendments on the wage gap and on women’s ability to compete effectively with men on the labour market.

4.  The Committee notes that in 2000 the Equality Ombudsman launched a study project to create a framework for regularly outlining the pay differentials between men and women and to generate data on developments in regard to the differentials and the factors that cause them. The Committee would appreciate receiving information on the results of the study once it is completed.

5.  The Committee notes that the incomes policy agreement in force in Finland until the end of 1999 contained an equality allowance targeted at lower-paid sectors where women predominate. It notes from the report that branch-specific collective agreements concluded in late 1999 and early 2000 do not contain such allowances. The SAK states that the pay differentials between men and women have remained unchanged due to the equality allowances mentioned. The STTK indicates that women’s low-pay allowances in incomes policy agreements play a significant role in reducing the pay differentials in situations where overall pay raises are small, where pay developments observe agreement guidelines and wage drift is relatively minimal. However, the STTK points out that equal pay should be promoted through other measures such as pay system reform through job demands evaluation (evaluation of the demands inherent in the job) and equality plans formulated pursuant to the Equality Act. The STTK states, however, that the implementation of equality in the workplace has been hindered by a lack of systematic planning. An STTK survey among industrial employees indicated that only 6 per cent of all workplaces had an equality plan in place. The KT feels that achieving equal pay may have a negative impact because removal of pay differentials would prevent employers from implementing incentive pay policies.

6.  With regard to job evaluation methods, the SAK and AKAVA state that new pay systems based on job demands evaluation have been agreed upon in numerous sectors. The Government indicates that 17 state agencies and institutions now have agreements on the new pay systems. However, AKAVA points out that the impact of the new pay systems on promoting equality in the workplace should be studied, particularly in the central administration, where the pay system reform is most advanced. The Committee notes from the report that the Ministry of Finance and the main social partners signed an agreement on 10 March 1999 to promote the new pay systems, which provides for the establishment of a working group to draft a proposal for the codification of pay system reform in central government collective agreements for employees and officials. The Committee also notes the report supplied by the Government on job demands evaluation in the state sector, and that the State Employer’s Office is continuing the development of research and statistical methods relevant to this issue as part of its work on developing pay systems. The Committee would be grateful if the Government would keep it informed of the proposals made by the working group, as well as the results of the work of the State Employer’s Office in this area, including the impact of the new systems on existing pay differentials.

7.  The right to obtain pay data.  The STTK states that monitoring the application of the principle of equal remuneration is hindered at the workplace level by the fact that the availability of pay data to shop stewards is limited in that data on pay to employees covered by a different collective agreement from that of the shop steward is unavailable. The STTK notes, however, that progress was made during the 2000 negotiations when a shop steward under the Finance and Special Fields Union of the STTK obtained the right to access data on average pay and similar statistics separately for men and women by job demands level. The Government indicates that the right of shop stewards to obtain pay data differs in the public and private sectors, but that the amendments to the Act on the Openness of Government Activities (621/1999) improved the right of shop stewards to obtain information in the state and municipal sectors. The shop steward agreement relating to the collective agreement for municipal employees and officials also included a clause providing that shop stewards shall have the right to obtain data on the pay levels of employees and officials.

8.  The Committee notes the information provided by the Government with regard to the equal pay complaints received by the Equality Ombudsman. It also notes the comments of the Chemical Workers’ Union with regard to the application of Discrimination (Employment and Occupation) Convention, 1958 (No. 111) that it is difficult for employees to initiate complaints under the Act on Equality between Women and Men due to fears of retaliation. 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 a summary of the complaint, the action taken and the outcome.

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

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.

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

The Committee notes the detailed information provided by the Government in its report as well as the comments concerning pay differentials from the Central Organization of Finnish Trade Unions (SAK) and the Confederation of Unions for Academic Professionals (AKAVA).

1. Article 2 of the Convention. The Committee notes from the information provided that the gap between the average earnings of men and women has widened; whereas women earned 76.8 per cent of men's earnings in 1992, they earned only 74.7 per cent in 1994. The Committee also notes that information on trends and prospects for women's employment in the 1990s in Finland annexed to the report suggests that general economic fluctuations are responsible for fluctuations in the size of the gender wage gap, whereby it appears that women are more vulnerable in times of economic recession because of the sector- and type-specificity of their employment. The Committee would be grateful to receive the Government's comments on this suggestion as well as information on the specific wage differential in female-dominated, male-dominated, low-paid and typically part-time occupations.

2. The Committee notes the 1995 amendments to the Act concerning equality between men and women, which place a duty on employers to promote equality (section 5) and to include measures for equality in their annual staff plans. The Committee asks the Government to supply information on how wage equality, in particular, is promoted in these annual plans and, if possible, to send copies of some of these plans.

3. Noting that in the course of 1993-96, the Equality Ombudsman issued 26 opinions on remuneration and that the number of requests for opinions on wage discrimination continued to increase, the Committee would be grateful if the Government could provide information on the trends in these discrimination allegations, and the measures undertaken to implement the opinions of the Ombudsman. The Committee would also appreciate receiving information on the current number, and the nature, of allegations of wage discrimination received by the Ombudsman.

4. Article 3. The Committee notes with interest the information in the final report of the job evaluation working group set up by the central labour market organizations. Considering that, according to information from the Government, some of the recommendations and suggestions put forward by the working group, such as the setting up of a working group to monitor job evaluation for the purpose of promoting the development and introduction of job evaluation schemes, have been implemented, the Committee would appreciate receiving information on the composition and mandate of this new working group, especially with regard to the extent that this includes the recommendations and suggestions of the earlier working group. The Committee would also be grateful to receive a copy of the manual on the development of evaluation schemes.

5. The Committee notes the information provided regarding the number of collective agreements concluded within the framework of the ongoing re-evaluation of the state pay system which is based on linking wages to job demands and individual work performance and competence, as well as on the jointly achieved overall result of a given work community. Noting that before 1996, these agreements covered only 5 per cent of the employees under the state budget, the Committee requests the Government to provide information on the agreements that were expected to be concluded since then, as indicated in the report.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the recent studies of the gender-related reasons for differences between women's and men's earnings mentioned in the Government's report. It notes, in particular, one study in the metal and forest industries showing that gender-related reasons accounted for 4.5 per cent of the difference in the case of female workers and 8.5 per cent of female salaried personnel where the pay differentials between the sexes were respectively 16 per cent and 32 per cent. It also notes a second study, in the metal industry, showing that the gender-related pay difference was 2.7 per cent, when company-specific differences were taken into account. It notes the statement of the Confederation of Finnish Industry and Employers (TT) and the Employers' Confederation of Service Industries (LTK) emphasizing the importance of eliminating, as far as possible, the effect on pay of "other" factors that are not related to sex, "such as the sector duties, working time, training, work experience, personal competency and work performance".

The Committee refers the Government to paragraphs 57 to 62 of its 1986 General Survey on Equal Remuneration where it examines other criteria used and warned of the need for bona fide application of apparently neutral factors, and the problem of evaluating a worker rather than the work. The Committee asks the Government to inform it in future reports of any other research studying sex-based vis-à-vis other factors in wage differentials or stressing residual gender-related gaps.

2. Noting the 1992 Supreme Court judgement concerning equal remuneration, the Committee asks the Government to continue to provide information on any court decisions or activities of the Equality Ombudsman concerning the application of the principle of the Convention.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

The Committee notes the detailed information provided by the Government in its report as well as the comments from the Confederation of Finnish Industry (TT) and the Employers' Confederation of Service Industries (LTK) on the methodology of studies into pay differentials, and the comments of the Central Organization of Finnish Trade Unions (SAK), the Confederation of Technical Employee Organizations in Finland (STTK) and the Confederation of Unions for Academic Professionals (AKAVA) calling for action to be taken on the great amount of data and studies showing unequal pay between men and women workers.

Article 2 of the Convention

1. The Committee notes from the statistical table in the Governments' report that despite the impact of the equality allowance in slightly reducing sex-based wage differentials, the trend towards narrowing this gap slowed down in the late 1980s. The greatest impact of the equality allowance was in the local government sector, where for full-time personnel in 1992 women's average monthly earnings were 76 per cent of men's. Noting that for civil servants in 1992 women's total average earnings were 79 per cent of men's, the Committee would be grateful to receive more statistical information, if possible, showing progress towards the reduction of sex-based wage gaps by sector with special emphasis on female-dominated occupations and low-paid occupations in relation to male-dominated occupations.

Article 3

2. The Committee notes with interest the information on the outcome of the study of the working group on job evaluation established by the central market organizations in 1990. The working group drew up a series of job requirements corresponding to the 1986 General Survey on Equal Remuneration and proposed measures to introduce job evaluation systems in various spheres of working life, such as sector-specific pay provisions, job evaluation systems for each contract sector, the use of job descriptions as a basis for job evaluation. The Working group stressed cooperation between the labour market parties and research promoting analytical job evaluation.

The working group then commissioned a pilot study aimed at testing its job requirement framework, which completed its work in 1993. The results showed that the chosen job evaluation factors could be applied to different sectors, that the jobs of women and men were equally demanding in both the public and the private sectors, that job descriptions were important and that job evaluation was a suitable tool for promoting equal pay between the sexes. As the Government reports that the pilot study is to continue with cross-sector comparisons, the Committee would like to be kept informed of its further findings and would like to receive a copy of its final report, which was expected to be completed in autumn 1993.

3. The Committee notes the information provided regarding the ongoing re-evaluation of the state pay system, according to which pay discrimination seems to be the lowest in the public sector and pay differentials are larger when statistics use average earnings rather than the various pay components. It also notes the principles on pay formulation contained in the 1992 State Employer's Salary and Wage Policy Programme, appended to the report, which aim at linking factors such as the demand for a job, personal work performance and operative results in setting fair and flexible pay levels.

The Committee would like to receive information on the practical application of this Programme and indications as to when the re-evaluation of the State pay system is completed.

4. The Committee is addressing a direct request to the Government on certain other points.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee has noted the information supplied by the Government in response to the Committee's previous comments.

1. The Committee recalls that, over the last several years, various workers' organisations have expressed concern over the lack of significant progress in reducing the wage differential between female and male workers. According to the Government's report, the Central Organisation of Finnish Trade Unions and the Confederation of Salaried Employees have stated that pay differences between women and men have still not been reduced. The Committee notes from the statistics available from the Office of the Council of State, provided by the Government, that there has been a continuous, though not dramatic diminution of the pay differential for all but one group of wage earners, over the last ten years. The Government has also indicated that in the public sector, where the total average earnings of women are some 77 per cent of those of men, the difference is mainly due to the fact that men and women hold different posts.

2. The Committee takes note of the information contained in the Government's report on a number of measures being taken to reduce wage differentials between the sexes:

(i) The labour market parties have been undertaking an investigation of the effect of the equality allowance, which was introduced in 1988 specifically to reduce pay imbalances between women and men. The Committee recalls that the size of the allowance is determined on the basis of the predominance of female employees in each sector. The Committee would be grateful if the Government would provide in its next report, information on the outcome of this study.

(ii) Following the decision of the comprehensive economic and incomes policy settlement to develop a job evaluation system, a working group was established to examine evaluation systems, taking into account, in particular, female-dominated sectors, and to develop recommendations which consider the possibility of comparing difficulty ratings between sectors. The Committee notes this initiative with interest and requests the Government to provide information on the findings of the working group and to indicate any measures taken to implement its recommendations.

(iii) Apart from responding to requests for advice on alleged pay discrimination, the Equality Ombudsman has also carried out on-site inspections of workplaces (under section 18 of the Equality Act) which involve interviews with employees and employers and the investigation of working conditions and the requirements of jobs. The Committee requests the Government to continue to furnish information on the activities of the Ombudsman in its future reports.

3. The Committee notes the information provided by the Government regarding the re-evaluation of state pay systems, which is being undertaken with a view to developing systems which provide for incentives to encourage productive, economical and profitable operations. The Committee requests the Government to provide information on any methods eventually put into place, which are relevant to the application of the Convention.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee refers to its observation. It notes the information supplied by the Government in its report. It also notes the statements, forwarded with the report, by the Confederation of Salaried Employees in Finland (TVK), the Central Organisation of Finnish Trade Unions (SAK), the Confederation of Unions for Academic Professions in Finland (AKAVA), the Finnish Employers' Federation (STK) and the Employers' Confederation of Service Industries (LTK).

1. In its previous observation, the Committee asked the Government to provide full information on the practical application of the Civil Servants Act (No. 755 of 1986) and the Act (No. 609 of 1986) on Equality between Women and Men. The Committee notes from the Government's report that since the Act on Equality between Women and Men has been in force, the equality authorities have received 679 written communications as at the end of June 1989; that the vast majority of these communications concerned suspected discrimination in hiring; and that each year there have been a few dozen communications regarding pay discrimination which came almost without exception from women. The Committee hopes that the Government will include in its next report information on communications regarding pay discrimination, on the actions and decisions taken by the equality authorities, and of the practical results attained.

2. The Committee notes the statistical data supplied by the Government on wages received by men and women workers in the public sector, and which tend to show that the remaining differences in average remuneration levels for men and women relate to different levels of duties. It also notes the statements made by the TVK according to which discrepancies in pay for male and female employees have not diminished since 1987, and that a member survey conducted by the Confederation in 1988 indicated that the pay of female TVK members amounted to 77 per cent of that of male TVK members. It also notes that the earlier trend towards greater equality in wages for men and women has come to a halt during the latter half of the 1980s; and that the AKAVA has conducted a member survey which indicates that, relative to men's salaries, earnings of female employees amount to only 82 per cent in the state administration, 83 per cent in the municipal sector, and 68 per cent in the private sector, and that discrepancies in pay are mainly due to specialisation into different types of work done by men and women. The AKAVA is of the opinion that the promotion of wage equality is dependent upon the realisation of more egalitarian attitudes towards different types of work.

In this connection, the Committee notes with interest from the Government's report that total reform of the state pay scheme is being planned in the committee on the state civil service employment relations and in the advisory committee on state employment relations, and that a proposal for reviewing the classification of job requirements used in the state pay scheme was being circulated in 1989 for comment from state offices and agencies.

The Committee refers to paragraphs 22 and 72 of its 1986 General Survey on Equal Remuneration, where it points out that, in spite of the difficulties associated with a broader comparison of jobs, the fact that women workers are more heavily concentrated in certain jobs and certain sectors of activity has to be taken into account so as to avoid or redress a biased evaluation of qualities traditionally considered as "peculiar to women". It requests the Government to supply in its next report full information on the proposed reform of the state pay scheme, the methods used for the objective evaluation of jobs on the basis of work to be performed, and on the results of that reform on the application of the principle of equal remuneration for men and women for work of equal value.

3. The Committee also requests the Government to supply full information on the methods of co-operation with the social partners for the purpose of giving effect to the provisions of the Convention, in particular with regard to the objective evaluation of jobs on the basis of work to be performed, and to provide information on the progress achieved in the private sector in the application of the principle of equal remuneration for men and women for work of equal value. In this respect, the Committee requests the Government to indicate in its next report whether the entry into force of the Act on Equality between Women and Men has resulted in a noticeable desegregation of the labour market on the basis of sex.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the information contained in the Government's report, which shows a slow but steady diminution of the wage differences between men and women workers, in the public sector in particular. It also notes the comments received from several workers' organisations to the effect that little or no progress has actually been achieved; and from two employers' organisations which indicate that the private sector has encountered no great difficulty in applying Act No. 609 of 1986 on Equality between Women and Men. The Committee has pursued these questions in a request addressed directly to the Government.

2. The Committee notes with interest that, in addition to a general pay rise in the public sector, the comprehensive agreement on economic and labour market policy signed on 23 August 1988 included for the first time a special "equality allowance" intended to reduce the imbalances in pay between men and women. The size of the equality allowance is determined on the basis of the predominance of female employees in each employment sector, with the decision on how it should be distributed left to each sector. The Committee notes the statement by the Central Organisation of Finnish Trade Unions (SAK) that the equality allowance is so limited in amount as to have had no significant effect on the wages imbalance between the sexes. The Committee requests the Government to indicate in its next report whether this scheme has been continued or expanded, and on the results achieved.