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Equal pay policies: International review of selected developing and developed countries

by Paula Määttä

IV. Finland

E. The role of the social partners

Equal pay policy

The labour market parties are almost solely responsible for equal pay policy because they negotiate wages in connection with the incomes policy and because wages are determined mainly in collective agreements. The employees central organizations are the Central Organization ofFinnish Trade Unions (SAK), the Confederation of Technical Employee Organizations in Finland (STTK) and the Confederation of Unions for Academic Professionals (AKAVA). The employers central organizations are the Finnish Employers Confederation (STK), the Confederation of Finnish Industry and Employers (TT) and the Employers Confederation of Service Industries (LTK), State Employers Office (VTML) and Commission for Local Authority Employers (KT). (Määttä 1993, 33-40.)

In Finland, there are about 2.6 million wage-earners, approximaely 1.8 million of whom belong to a trade union. The number of men and women members varies among trade unions. Generally, men are more interested in taking part in trade union activity than women. There are only a few women in decision-making bodies in trade unions. Chairpersons are usually men. Only few trade unions (the SAK, for example) have female chairpersons. (Määttä 1993, 33-37.)

The principles of equal pay and equality between the sexes are not the primary objectives of employers organizations as they are for employees organizations. Employers organizations emphasize that women employees are not discriminated against in terms of wages. It is not in the employers interest to increase womens wage levels up to that of men because it would result in greater expense, whereas employees organizations highlight the problem of lower-paid women workers and the importance of evening out the wage differential between the sexes. (Martikainen & Yli-Pietilä 1992, 224.; Määttä 1993, 39-40, 72).

The employees and employers representatives explain wage differentials between women and men in different ways. Employers explain the unfulfilled principle of equal pay by inability to pay wages in different ways. The SAK and the AKAVA consider that collective agreements discriminate against women because the wage structures are not systematic nor do they pay equal attention to job requirements of mens work and womens work. (Määttä 1993, 72-73.)

Nowadays trade unions pay greater attention to their own internal policies for promoting the position of women. Several unions have decided to promote equality in their internal administration as well as in their personnel policies. Some of them have set up joint working groups on equality.


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Updated by BC. Approved by MR. Last update: 10 August 2000.