1. MINISTRY OF SOCIAL AFFAIRS AND HEALTH 1 The role of social partners in Finland Esko Salo Ministerial Counsellor, Legal Affairs 9.2.2007

2. MINISTRY OF SOCIAL AFFAIRS AND HEALTH 2 Background In Finland over 70 % of employees are members in trade unions three trade union confederations and one confederation of employers federations long tradition of making incomes policy agreements differences in society are small

3. MINISTRY OF SOCIAL AFFAIRS AND HEALTH 3 The role of labour market organisations unemployment benefits are often one part of the incomes policy agreements labour market organisations are playing part in the legislative process employers and employees have an important role in the financing representatives of the labour market organisations are as members in the Unemployment Security Appeal Bord and in the Insurance Court unemployment funds, which are administering earning-related unemployment allowance, are operating in connection with the trade unions

4. MINISTRY OF SOCIAL AFFAIRS AND HEALTH 4 Weaknesses laws are mostly compromises process is often very slow and heavy in the incomes policy agreements unemployment benefits are only a small part and not the most important

5. MINISTRY OF SOCIAL AFFAIRS AND HEALTH 5 Advantages if all have similar views on a matter, it goes fast forward big reforms are possible without any problems unemployment insurance system is wide accepted in the parliament the drafts of a proposed law are accepted without changes labour market organisations have a lot of information about working life taking part in financing prevents the increase in expenditure trade unions co-operation with the unemployment funds improves the administering of the unemployment allowance