NordenBladet — On 28 October 2020, the European Commission presented a proposal for a Directive on adequate minimum wages in the EU. The Government supports the proposal’s objective to combat in-work poverty, for example by improving the role of labour market organisations in wage formation and their ability to negotiate and agree wages through collective agreements.“Our Government Programme stresses the importance of social dimension in the EU and considers reducing inequality one of the key areas of EU cooperation. The Commission’s initiative responds to both of these issues,” says Minister of Employment Tuula Haatainen.The aim of the Commission’s proposal is to ensure adequate pay and a decent income to workers across the Union. Member States would not be required to introduce legislation on minimum wages or determine the level of minimum wages. The proposal aims to strengthen the role of labour market organisations in wage formation in countries where minimum wages are based on law.On 10 December 2020, the Government submitted a Union communication to Parliament concerning the Commission’s proposal and the Government’s position on it. Based on an initial assessment, the Directive does not appear to cause significant legislative changes in Finland. The processing of the proposal at EU level has only just begun, so Finland will clarify its position with time.No significant changes in Finnish legislation are expectedThe proposed Directive would provide a framework for addressing minimum wages in the Member States and for monitoring them at EU level. The changes would apply in particular to EU countries with a statutory minimum wage. The proposal aims to ensure that minimum wages comply with certain criteria and that labour market organisations participate in determining and monitoring the level of wages.The Directive does not propose a uniform minimum wage for the EU. Nor does it propose a statutory minimum wage for Finland or other Member States where wages are determined by collective agreements. According to the proposal, Member States should promote collective bargaining. Finland stresses the need to respect the contractual autonomy of the social partners in wage formation.The Commission proposes that Member States be required to provide statistics and reports on the development of minimum wages.“In some Member States, statutory minimum wages have fallen behind and in-work poverty has increased. Monitoring at EU level would support balanced wage development and thereby even out competition for companies in the internal market,” Minister of Employment Haatainen adds.

Source: Valtioneuvosto.fi

NordenBladet — The Government has prepared a draft report on education policy. The report provides an overview of the current situation in education and research and the target state and necessary measures to reach the target. The draft report has been sent on a broad round of consultations. The report is due to be submitted to Parliament early next year.

The report sets out a vision for education and research extending to the 2040s. It outlines the changes in resources, structures and guidance that will be needed to respond and to influence the factors changing the national and international operating environment, and to create the conditions for a meaningful life for everyone. In 2040, Finland will be a nation with a strong cultural and educational foundation that draws on effective education, research and culture that are all of high quality. Everyone has the right to learn and grow and to receive the support and guidance they need.

Broad-based preparation and consultation
Anita Lehikoinen, Permanent Secretary, Ministry of Education and Culture, tel. +358 295 330 182
Petri Haltia, Ministerial Adviser, Ministry of Education and Culture, tel. +358 295 330 096

Source: Valtioneuvosto.fi

NordenBladet — The objective of business cost support is to help companies cope with the difficult economic situation caused by the coronavirus. The support is compensation for the company’s inflexible costs and payroll costs, but it does not compensate for a fall in turnover. The support is targeted at companies whose turnover has decreased by at least 30% due to the coronavirus. A new application round will open soon with partly renewed conditions.

On 10 December 2020, the Government proposed that the President of the Republic approve the amendments to the Act on Support for Business Costs. The President is to approve the bill on 11 December 2020. The act would enter into force on 15 December 2020.The State Treasury is in charge of the application round. The State Treasury intends to start accepting applications from companies on 21 December 2020, with the application period lasting until the end of February. The State Treasury will provide information about the exact application period later.

“With business cost support, we want to help as many companies as possible to survive the coronavirus epidemic. Any company that has been hit by the virus can apply for support. The situation for companies in different sectors varies greatly, so belonging to a specific sector is not an absolute prerequisite for receiving support,” says Minister of Economic Affairs Mika Lintilä.

“It is our aim at the State Treasury to make the application for business cost support as quick and easy as possible for entrepreneurs. We have tested the application form with a client panel to ensure clarity and it has received good feedback. We have also simplified the application by not requiring any attachments as we can receive all needed information directly from the Tax Administration,” says Director of Insurance Jyri Tapper from the State Treasury.

Fall in turnover due to coronavirus is a condition for receiving business cost support
Due to the reduced turnover caused by the coronavirus pandemic, companies have struggled to pay inflexible business costs and payroll costs. The business cost support is intended for companies whose turnover has fallen by at least 30% due to the pandemic between June and October 2020, compared with the corresponding period in 2019. If the company was established on or after 1 May 2019, the reference period is from 1 January 2020 to 28 February 2020.

In addition to the company’s own turnover, the decrease in the turnover of companies in the same business sector will be assessed. If the turnover of the sector has decreased by at least 10%, the sector is deemed to have suffered from the coronavirus and the company can apply for business cost support without any additional justification. Assessing the situation in the sector will help to direct support specifically to those companies affected by the virus and speed up the processing of the company’s application at the State Treasury.

The sectors covered by the support will be laid down in a separate decree to be issued by the Government on 18 December 2020. The sectors will be determined on the basis of turnover data from the Tax Administration for June–October 2019 and 2020.

All companies affected by coronavirus can apply for business cost support
A business can apply for business cost support even if the turnover in its sector has not fallen by at least 10% and the sector therefore is not included in the Annex to the Government Decree on Support for Business Costs. In such a case, the company must present particularly compelling evidence that the decrease in turnover has been due to the coronavirus crisis.

Business cost support also covers foundations and associations engaged in business activities. Support may not be granted for business activities in primary agricultural production, fisheries and aquaculture.Unlike in the first application round, there is no minimum level of turnover required from companies to be eligible for support. In this way, the support will be better targeted at small enterprises. The minimum support is still EUR 2,000 and the maximum support is EUR 500,000.A company may apply for this support even if it has already received other direct financial support due to the coronavirus crisis. However, the aid already granted will be taken into account in the amount of the business cost support so that the total aid granted under the same temporary State aid rules of the European Commission does not exceed EUR 800,000.

Business cost support aids entrepreneurs during the pandemic
Support for business costs is one way for the State to support companies during the coronavirus pandemic. The first application round took place in July–August. The State has reserved EUR 550 million for the second round of applications in 2021, but the estimate of the appropriation needed is uncertain and may not be used in whole. The use of the appropriation depends on the number of companies meeting the criteria for support and their costs.

With the help of previous support from Business Finland and ELY Centres, companies were able to develop and redirect their operations in the coronavirus situation.

Other means include guarantees from Finnvera, funding programmes from Tesi (Finnish Industry Investment) and the employment package created in cooperation with labour market organisations, which included eased rules on lay-offs and cooperation negotiations. In addition, temporary reductions to pension insurance contributions and temporary amendments to the Bankruptcy Act are also in effect. Other forms of aid have included special support for the food and beverage services sector and sole entrepreneurs.

Source: Valtioneuvosto.fi

NordenBladet — According to Minister of Finance Matti Vanhanen, the recommendations set out in the OECD’s Economic Survey of Finland, published on 10 December, should be closely studied.

“There is a great need for structural reform in our economy. And in this coronavirus year, Finland has demonstrated that we are able to act objectively, briskly and with a focus on solutions. This same national spirit of pushing ahead must continue in the years to come,” says Minister Vanhanen.  The OECD expects Finland’s economy to grow by just below two per cent in the next few years. Finland should not be content with this, however, says Vanhanen. But achieving a higher level of growth will require flexibility in working life and higher productivity.

“Since the financial crisis, growth in the Finnish economy has been subdued. A sharp rise was not seen until 2015. A similar recovery period of almost ten years is something we can’t afford. We need to look at the period beyond the coronavirus crisis. In the spring, we must focus firmly on preparing measures to raise the employment rate and boost productivity and growth in the economy. Building up debt allows us only to buy time for bringing in the reforms,” says Minister Vanhanen.

Vanhanen points out that in the OECD’s view, Finland’s growth in the next few years will be low due to post-coronavirus uncertainty having an impact on investment decisions. He consequently believes that working life reforms and funding solutions must be examined from the investment perspective in particular.

According to Vanhanen, Finland has, fortunately, already started to tackle some aspects of the OECD’s recommendations. For example, steps to strengthen the labour market position of people approaching retirement age are currently being considered by the Government.

“Over the years, it has become common in Finnish workplaces to view employees nearing the age of 60 as the first who would be let go. Many think of this as making way for younger people. But we shouldn’t resort to this kind of zero-sum thinking. The employment rate should be raised across all age groups. We need to expand the size of the cake.

”In the short term, the extended unemployment allowance that gives an unemployment path to retirement has been an easy way of adjusting for both employees and employers. But this arrangement is ultimately discriminatory against older workers. Studies in Finland, too, have shown that whenever the age threshold for the extended unemployment allowance has been raised, people have found jobs more easily, and their income, and even their health, has improved. “Age discrimination must be brought to an end, both in legislation and in the practices followed. Attitudes must change. Health services, too, must function more smoothly, so that rehabilitation and support are available when they are needed. Everything should dovetail together so that older workers can improve their capacity to work and can cope at work.” Besides recognising the need for reforms, the OECD also identifies Finland’s strengths in the labour market, such as the special arrangement where temporary lay-offs are possible instead of permanent job losses.

“The labour market organisations acted commendably in the spring, when it proved possible on a fast-track timescale to introduce temporary measures for lay-offs and unemployment security, among other things, which helped the system to operate under crisis conditions,” says Vanhanen.

The OECD also recommends that flexibility in collective agreements be extended to all employers, which in practice means expanding the opportunities for local collective bargaining. “I see the promotion of local collective bargaining as a key tool that we can use to support the competitiveness of our export sectors in the coming years. The operating environment for businesses is uncertain and changing, which means that different companies even within the same sector have different competitive situations. For local collective bargaining to succeed, it is necessary to have trust and sufficient employee involvement in the company’s decision-making. Introducing greater flexibility is in our own hands, at national level,” says Minister Vanhanen.

The OECD, says Vanhanen, is right to draw attention to the need to raise productivity and cost-effectiveness in public services, for instance through the health and social services reform and digital transformation.“It should also be noted that the health and social services reform will be one of biggest structural reforms ever undertaken. A cost-effective reform will be possible thanks to the common budget, management arrangements, client data and personnel of the wellbeing services counties. The costs of the ICT changeover will initially be high, but this will bring enormous benefits in the long term,” notes Vanhanen.

Source: Valtioneuvosto.fi

NordenBladet — On Thursday 10 December, the Government adopted a resolution on Finland’s COVID-19 vaccine strategy, the key content of which was outlined in negotiations last week.Finland’s objective is to protect the entire population once an authorised vaccine is available. The vaccines will be offered free of charge to anyone who wishes to be vaccinated. Vaccination of children will become topical once the target group studies are complete.

The evidence-based vaccine strategy has been prepared by the Ministry of Social Affairs and Health on medical grounds and in consultation with national experts. The strategy defines the main principles for prioritising COVID-19 vaccination in Finland. Vaccination will be offered based on a medical risk assessment. In the initial phase, the vaccine will be offered to healthcare and social welfare workers caring for COVID-19 patients and to care home workers, elderly persons and persons at high risk for severe disease due to underlying health conditions.

Finland is taking part in the European Union’s joint vaccine procurement, which guarantees access to COVID-19 vaccines from several manufacturers. The European Commission has negotiated agreements on six different COVID-19 vaccines. Finland is a party to all six agreements.

The practical arrangements for vaccination must take into account the possibility that a COVID-19 vaccine will not be available to everyone at once. According to an estimate by the Ministry of Social Affairs and Health, the first vaccines will arrive in Finland at the beginning of 2021. Once they have arrived, the vaccination process will begin as soon as possible. The practical arrangements for vaccination will be coordinated by hospital districts. Municipalities are responsible for organising vaccination in their areas. Municipalities can cooperate with other municipalities, with occupational healthcare and private service providers, and with the hospital districts in their areas. The final decisions on vaccination cannot be made until the vaccines have been authorised and are available. The Government will decide on the implementation of vaccinations by adopting a Decree in accordance with the Communicable Diseases Act once the vaccines to be used have been confirmed.

Source: Valtioneuvosto.fi

NordenBladet — Policy options to regulate responsible business conduct are being discussed in Finland and in the European Union. The Finnish Ministry of Economic Affairs and Employment will appoint a working group to support preparations on due diligence. Due diligence means the responsibility of businesses to address and prevent adverse impacts on human rights or the environment.

The Ministry requested its stakeholders to appoint a representative to the new working group on 9 December 2020. The group’s term will run from 15 February 2021 to 1 February 2022. Its members will represent ministries and organisations working with responsible business conduct. The Ministry and the working group will arrange opportunities for other stakeholders to participate in the preparations.

National work based on analysis on a corporate social responsibility act
In its programme, the Government of Prime Minister Sanna Marin is committed to promoting responsible business conduct in Finland and the EU. One of the measures in the Government Programme is a review on a new corporate social responsibility act. The act would be based on a due diligence obligation of businesses operating in Finland and abroad.

The Ministry of Economic Affairs and Employment commissioned a judicial analysis that outlined the nature of a corporate social responsibility act and due diligence obligations in Finland. The analysis explored possible regulatory options, their scope of application, supervision and sanctions under corporate social responsibility legislation. The Ministry organised a public consultation on the analysis report from 30 June to 30 September 2020. It received 48 opinions.

The new working group is to support the preparations carried out as part of official duties at the Ministry. This work will be based on the judicial analysis on a corporate social responsibility act and the opinions received during the round of consultation. The working group will be consulted regularly during the preparations.

Commission is collecting views on EU regulation
The European Commission has announced that it will submit a legislative proposal on sustainable corporate governance by the end of June 2021. The proposal would also cover due diligence. The Commission is consulting stakeholders on sustainable corporate governance until 8 February 2021. It is asking stakeholders to outline how the EU could help businesses make their operations more sustainable in economic, social and environmental terms.Finland will formulate its position following the regular national preparation of EU matters. The expertise of the new working group will be put to use in Finland’s efforts to influence preparations at the EU level and when legislative proposals are being discussed.

Source: Valtioneuvosto.fi

NordenBladet — In its latest Economic Survey of Finland, the Organisation for Economic Co-operation and Development (OECD) assesses the impact of the coronavirus crisis on the Finnish economy, among other things. A special theme of the report is the Government’s employment target.The Economic Survey was presented by Director of the OECD’s Country Studies Branch Álvaro Santos Pereira at the publication launch, held as a virtual seminar, on Thursday 10 December. OECD press release, Economic Survey of Finland and presentation material

Source: Valtioneuvosto.fi

NordenBladet — The Ministry of Transport and Communications has sent for comments a draft action plan on legislation and key measures supporting the development of automation in the desired direction. The main point is to develop and increase transport automation that meets human needs.Finland’s goal is to be a pioneer of transport automation. The plan is intended to ensure that legislation enables automation and its benefits – safe, efficient and low-emission transport.

The plan examines the current state of transport automation development from several different perspectives and outlines possible directions for development. The plan for the development and utilisation of transport automation sets three objectives encompassing all modes of transport:

1) Development and utilisation of transport automation so that the interest of individuals and societies lies at the core (human-centredness)
2) Improving the availability and exchange of transport-related information
3) Development of the regulatory framework on transport automation

Implementation of automation requires the development of legislation and the digital infrastructure
As a rule, the automation of all transport modes can be promoted through similar measures. These include, among others, promoting regulation, the digital and physical infrastructure and information exchange, supporting tests and pilots, and strengthening cooperation.

Legislative issues are central, as transport automation is based on the utilisation of data and artificial intelligence systems. Regulation concerning these should ensure the ethical development and utilisation of automation which, from the perspective of the traditional technical regulation of transport, is new.

The digital transport infrastructure must enable automated transport. The current level of infrastructure is sufficient for the present needs of digitalising transport, but wider utilisation of automation requires investment in next-generation 5G networks.In road traffic, for example, the aim is that automated vehicles can be introduced as they are placed on the market and are allowed to be introduced in stages. This means, for example, that with advanced automatic vehicles it would initially be possible to drive on motorways in Finland in good conditions or that remote-controlled small buses could provide transport services.

Human-centredness of the Government Programme is also at the heart of transport automation development
The action plan on legislation and key measures of transport automation is based on Prime Minister Sanna Marin’s Government Programmme, which aims to make Finland known as a technological pioneer in which the regulatory environment and administration enable digitalisation and sustainable development as well as an extensive experimental culture. Alongside achieving the goal, it is essential that the goal has been achieved ethically correctly, taking human needs and equality into account.On the basis of the plan, the intention is for the Government to make a government resolution and to start work on possible needs for legislative amendments. The plan also serves in the preparation of a 12-year national transport system plan and in international work to exert influence.

What next?Draft on transport automation action plan on legislation and key measures was sent for comments. The comment period ends on 15 January 2021.

Comments can be presented by all organisations and citizens at www.lausuntopalvelu.fi or by email. After the round for comments, preparation of the project will continue as civil service work. Possible review of legislation would start at the beginning of the year 2021.

Source: Valtioneuvosto.fi