Finnish employers seek more Estonians for work in Finland

Use of Estonian temp agencies to continue as restrictions on new EU members end

print this

Representatives of temp agencies in Estonia expect Finnish employers to use their services more eagerly than before for the purpose of recruiting Estonian workers.
      Citizens of Estonia and other new member states of the European Union are to have full access to the Finnish labour market from the first of May. That date marks the end of the interim period, in which citizens of new EU member states were required to have work permits, in spite of the principle of free movement of labour in the EU.
      During the interim period, many Finnish employers have managed to use Estonian labour by taking advantage of a loophole provided by Estonian temp agencies. Estonian citizens nominally employed by the Estonian companies have actually been working in Finland.
      The Central Organisation of Finnish Trade Unions (SAK) has expressed the hope that with the open labour market now formally extended to Estonian citizens, Finnish employers would start hiring Estonians directly, without resorting to any intermediaries. However, there are indications that this will not happen any time soon.
      "At first we were afraid that there would be fewer offers, and that companies would recruit their workers directly", says Riin Kilk of the Tallinn temp agency Personalipunkt Extra.
      In fact, the opposite seems to be true. The temp agencies Adecco, Uniq U Eesti, and Varumeesteenidus have noticed an increase in inquiries from both Finnish employers and Estonian job-seekers.
      Finnish employers are looking for people to work in construction, manufacturing, customer service, logistics, and industry.
     
The news does not come as a surprise to Riitta Wärn, a labour market expert at the Confederation of Finnish Industry (EK).
      "I have warned about this for over a year - ever since EK said last year that the whole interim period should be cancelled quickly, because the market was becoming distorted."
      When Finland placed restrictions on the free movement of labour from the countries that joined the EU in May 2004, there were no restrictions on the movement of services; temp agencies were seen as part of the service sector, and Estonians started to come to work in Finland as employees of temp agencies or subcontractors. The wages of such workers are paid by the Estonian company, which is paid a fee by the Finnish company using the service. It has been difficult for Finnish officials and labour unions to monitor the pay and terms of employment of such workers; the activity has been seen to distort competition in certain fields. Estonian temp workers have also been used to replace Finns.
     
"I see no reason why the market should be rectified, considering that people have had two years to get used to this system. Service in Tallinn has been good", Wärn says.
      During the interim period, a Finnish employer wishing to hire an Estonian without an intermediary has had to wait for up to six weeks for the prospective employee's work permit to be processed; those who are nominally employees of a temp agency have been available at a day’s notice.
      Klik believes that Finnish employers want to continue to save in personnel and bookkeeping costs.
      SAK’s Matti Viialainen does not feel that the interim period is the reason for the popularity of subcontracted labour. He blames the fact that the restrictions did not extend to services, as the SAK would have liked.
      Viialainen also points out that temp work and subcontracting are on the increase otherwise as well. Statistics Finland reports that employment exchange services are the most rapidly-growing part of the service sector in Finland.
     
Minister of Labour Tarja Filatov (SDP) is aware of the situation.
      She notes that the use of temp agencies has also increased in Sweden, which did not impose an interim period for workers from other EU countries.
      She added that it would be very difficult to get rid of the practice in seasonal work.
      "And with a shortage of labour starting to hit Estonia, employees there can better choose how they want to go abroad, if they want to."
      The labour shortage is already being felt in Estonia.
      "Demand is growing primarily in local markets. The labour shortage in Estonia is getting to be critical, as people are wanted in every sector", notes Heigo Kaldra of the Estonian branch of the international temp agency Manpower.


Previously in HS International Edition:
  Finland is ready to lift EU labour restrictions (15.3.2006)
  Finnish trade union confederation says Estonian workers treated badly in Finland (8.6.2005)
  Labour Ministry: Interim period for labour from new EU states causes problems (19.1.2005)
  Loophole allows Estonians to work in Finland immediately after EU membership (5.4.2004)

Helsingin Sanomat