Finns active in shady construction business in Estonian

Half of Estonian companies under embargo by Finland’s construction union owned by Finns

print this

Helsingin Sanomat has learned that Finns have been eagerly setting up companies in Estonia. About half of the 21 Estonian companies under an embargo imposed by Finland’s Construction Trade Union are owned by Finns.
      This year a total of 175 new companies have been registered in Estonia that are either partially or completely owned by Finns, and whose line of business is either construction or renting out labour.
      Before the beginning of this year there were a total of 373 such companies.
      The Construction Trade Union says that a number of other companies, which are nominally owned and operated by Estonians, have Finns making the decisions, and reaping the economic benefits.
     
The union imposed the embargo on the 21 construction companies which had not provided what the union considered satisfactory information on the pay and working conditions of their workers. The embargo means that members of the Construction Trade Union are forbidden to work in cooperation with the company in question.
      Esko Auvinen and Markus Ainasoja of the Construction Trade Union say that the Finns who run companies which are nominally owned by Estonians usually have such a shady past that they are unable to operate openly under their own names.
      "It is wrong to accuse Estonians or Russians of violating the conditions of work. The ones who actually engage in dishonest practices are usually Finns.", says Auvinen.
     
Kari Tapio, director of the Confederation of Finnish Construction Industries, is not against Estonian companies entering the construction business in Finland, unless the companies violate labour contracts and the law.
      He notes that the number of Estonian construction companies has increased considerably in Finland during Estonia’s EU membership, which took effect in May.
      He says that in some cases, the Estonian companies have caused "market disturbances" in Finland.
     
The increased use of Estonian labour at Finnish construction sites has led to a statistical rise in construction wages in Estonia.
      "Construction workers working in Finland are paid in Estonia. Paradoxically this raises the statistical average wages in this country", says Tarmo Lige, managing director of the Estonian Association of Construction Entrepreneurs.
      He says that construction wages in Estonia have risen by nearly 20% this year. However, those who actually work in Estonia do not earn as much.
     
When Estonia joined the EU, Finland and a number of other EU countries imposed a an interim period of two-years, before the free movement of labour would apply to the new EU countries.
      During the period, citizens of the new member states need a work permit to work directly for a Finnish employer. However, the rule does not apply to those who work for an Estonian company and are sent to Finland as part of that job. Thus, Estonian companies can subcontract their services to Finland, allowing their employees to work in Finland without work permits.


Previously in HS International Edition:
  Estonia's six months in EU have brought no massive changes for Finland (2.11.2004)

Helsingin Sanomat