A range of tools are needed to fight social dumping
Workers may have to work too long days, even weeks, sometimes without any days off. This means hundreds of hours of unpaid work, i.e. unfair advantage, to the employer a year. Photo: GettyImages.
Social dumping, i.e. exploitation of workers, can be seen in service sectors as underpay or too long working hours, for example. Social dumping can be countered through collective agreements, monitoring and criminalisation of underpay.
The system of generally binding collective agreements regulates most working conditions of employees. According to PAM’s Collective Bargaining Director Jaana Ylitalo, it is precisely the generally binding agreements that have prevented the rise of the two-tier labour market, as everybody has to play with the same rules.
However, collectively defined working conditions are sometimes being neglected in service sectors. This phenomenon is known as social dumping.
”If employees are not organised in their workplaces then there is not enough awareness of, for example, working conditions or wages”, Ylitalo says.
In PAM sectors, a number of problems related to social dumping exist. Underpay, i.e. paying the workers less than the minimum wage, can be seen in the cleaning sector, in particular, but also in the restaurant sector. Subcontractor chains are typical in the cleaning sector, meaning that those who work at the end of the chain are less monitored and therefore more prone to exploitation.
Neglecting rules on working hours is a common problem in service sectors. Workers may have to work too long days, even weeks, sometimes without any days off. This means hundreds of hours of unpaid work, i.e. unfair advantage, to the employer a year.
PAM has supported criminalisation of underpay, i.e. fines to those employers who pay their workers less than the minimum pay. At the moment, even intentional underpay may go unsanctioned which PAM thinks is unfair.
Many workers with immigrant background contact PAM on issues related to underpay and lacking labour protection. Especially foreign-born workers need more knowledge on Finnish working life.
”We know that underpay is much more common with workers with immigrant background, compared to for example Finnish workers”, Ylitalo says.
For this reason, PAM has cooperated with various immigrant groups to disseminate information on working life rules. Workers with immigrant background can contact the joint SAK and member unions’ employee rights advisory service for free, and receive advice.
”At first hand, we advise workers to join the union and later seek support from the workplace’s shop steward if needed. A high rate of union membership in the workplace means more security in different working life situations”, PAM’s Organisation Manager Heidi Lehikoinen points out.
At the moment, the rate of union membership in service sector workplaces is 55–70 per cent, depending on the individual sector.
Watch PAM’s video on social dumping in the service sector.
How to recognise social dumping?
As a consumer, you can contribute to fair working conditions in the service sector. Ask for a receipt of the service you order and compare prices. If the service is too cheap, it may be that the taxes are not paid correctly. Please react if the worker you meet seems wary, his or her working conditions are inferior or if you hear that the worker is always at work or works without pay. You can also send a confidential tipoff about black-economy activities to the occupational safety and health authorities.
Text:: Marie Sandberg-Chibani