Know your Rights
Act on Co-operation within Undertakings
The financial difficulties in the world in general and
specifically here in Finland have led to econimical
stress that also concerns the universities.
Universities' funding has been cut by the government
and having less funding, the universities
are facing the difficult situation of trying to balance
their financial situations. This could of course be done
in several different ways, for example by trying to
find new funding elsewhere, but unfortunately also
through temporary lay offs and terminations of employment
contracts and also not renewing fixed term
contracts, which may have lasted for years at the university
sector.
Act on Co-operation within Undertakings governs
many things about co-operation between the employer
and the employees in the work place. It is a law
designed to help the employer and the employees as a
collective to negotiate and find mutual understanding
about things that have an effect on the employees in
the work place. This can mean different things. The
spirit of the law is that a genuine mutual agreement is
sought and both parties can be satisfied with the negotiations.
However, in the end, the employer always
has the last say and right to make the decisions they
want or need to do.
For example, different work place arrangements
and organization of the work are things that must be
handled in co-operation. Also more difficult and severe
things such as reduction of the work force must
be handled according to the Act on Co-operation
within Undertakings. The media seems to regard the
Act on Co-operation within Undertakings basically
only as a means to reduce the labor force. This, however,
is not the case, since most of the law is meant to
improve the co-operation between employer and the
employees, as I stated before.
In the negotiations according to the Act on Cooperation
within Undertakings, the employers'
representative negotiates with the employees' collective
representative, the chief shop steward. The
negotiations will concern all
employees mentioned in the
negotiation notice, regardless
whether they are members of
any trade unions or not. However,
after the negotiations are over, the shop stewards
may only consult those employees that are members
of the representative trade unions, according to
the shop steward system, which I have discussed earlier
in one of my articles. The negotiations to reduce
the work force last normally 6 weeks. Usually both
the employer's and the employees' representatives
inform the employees about the negotiations, (when
the negotiations start, during the negotiations and after
the negotiations are over).
If as a result, some employees are let go, they will
usually be contacted personally and let know about
the employer's decision privately. The employers
usually organize information seminars about unemployment
benefits and about seeking new work after
the co-operation negotiations are over. The employer
has to try to find new positions within its organization
for those facing their contract's termination. The
employer also has a legal obligation to re-hire the
employee within 9 month time from the ending of
the contract, (this is calculated after the notice time,
which applies). However, this re-hiring does not apply
to those working under fixed term contracts.
Terminology
Temporary lay off, an employee's employment contract
is not terminated, but the employee will not
work during the lay off period. Employee is eligible for
unemployment compensation during this time.
Co-operation procedures according to Act on Cooperation
within Undertakings Chapter 8, co-operation
negotiations which aims to reduce the work force
in the work place
Fixed term contract, an employment contract that
is valid for a certain, fixed, time after which the contract
ends without termination.
text Mia Weckman
lawyer, the Finnish Union of
University Researchers and Teachers
- Painetussa lehdessä sivu 40
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