Fewer Estonians hired directly by Finnish companies

Use of subcontractors and labour rental agencies increases

print this

Finnish companies have been hiring fewer Estonian workers directly after Estonia became a member of the European Union. On the other hand, the use of subcontractors and labour rental agencies has increased, leading to an increase in the number of Estonians actually working in Finland.
      It is estimated that the number of Estonians working in construction and in the service sector in Finland has grown since Estonia joined the EU in May this year. There have been fears especially in the construction industry that the situation could distort competition.
     
The use of temp agencies and subcontractors is partly the result of the two-year interim period restricting immigration by citizens of Estonia and seven other new EU member states.
      During this period, citizens of those countries coming to work in Finland need a statement from local labour authorities ascertaining that employees could not be found on the Finnish labour market for the job in question in a reasonable time.
      However, a legal loophole leaves the door open to workers hired by temp agencies and subcontractors. This means that a company registered in a new EU country can send its workers to Finland without a work permit on the basis of the principle of the free movement of services.
      Labour officials have noted a decline in the number of Estonians hired directly by Finnish companies. Between May and August this year, Finnish labour officials have given statements on just nine Estonian masons applying for a work permit in Finland. At the same time last year there were 91. The figures are similar for other professionals in the construction business.
     
"The two-year interim period has no practical significance. Estonian construction workers are coming to Finland anyway in the name of Estonian companies, or completely illegally", says Kyösti Suokas, second chairman of Finland’s Construction Workers’ Union.
      Tapio Kari of the Confederation of Construction Industries says that it is usually cheaper to use Estonian subcontractors and temp agencies than to hire Finns. He also suspects that this is leading to an increase in violations of labour standards.
      "If an Estonian company comes to Finland to work, bringing its Estonian workers with it, it is unlikely to have knowledge of all Finnish legislation and requirements. Therefore it would be better for the workers to be employed by a Finnish company. When someone competes unfairly, it will cause problems for subcontractors in honest competition", Kari says.
      Kari is sharply opposed to extending the two-year period of restricted access to the Finnish labour market by Estonians. On the basis of the experiences of the first months, he says that it would be good if the period could be shortened.
      However, Kaarlo Julkunen, second chairman of the Service Union United, is in favour of the two-year waiting period, saying that without it, there would have been an even greater surge of foreign labour onto the Finnish market.


Previously in HS International Edition:
  Construction workers without permits discovered at Santahamina garrison site (25.8.2004)
  Loophole allows Estonians to work in Finland immediately after EU membership (5.4.2004)
  Prime Minister Vanhanen: Baltic States no major threat to Finnish jobs (27.1.2004)
  Restrictions on workers from new EU member states for two years (16.1.2004)

Helsingin Sanomat