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16.06.2026 11:08

PAM highlights quick and hefty sanctions and tighter legislation to combat labour exploitation

Labour exploitation and the grey economy linked to it is a billion-euro business. It affects the victims the most, but also honest companies and the entire society. – We believe that it can be eradicated and that’s why we’ve made our own proposals, says PAM President Annika Rönni-Sällinen.

– Our view is that the business model of labour exploitation that has taken root in Finland is because the risk of getting caught is next to none and the consequences are insignificant, says Annika Rönni-Sällinen, President of Service Union United PAM.

Labour exploitation is exploiting a worker for profit taking advantage of their vulnerable situation. Labour exploitation happens by violating collective agreements and labour laws such as the Working Time Act.

Trade unions have over the years made numerous proposals that could have prevented exploitation, but they did not get traction. What’s new in PAM’s solutions for the next parliamentary period is hefty administrative sanctions that authorities can order quickly when a violation is discovered.

– They’ve been regarded as impossible, but it’s just a case of deciding to create them. There are such sanctions already in use in European countries such as Holland, Belgium and Austria, Rönni-Sällinen says.

– Resolving issues through the prosecutors and courts can take years, which is too long for both the victim and the perpetrator.

A large share of the trade unions previous proposals have been objected to by employer representatives and there hasn’t been enough political will.

The proposals PAM now proposes in no way increase companies’ administrative burden or bureaucracy, or it can be avoided through their own choices. It’s enough to do as you’re supposed to.

– On the other hand, the dismantling of labour legislation in protection of workers, as well as cuts to authorities’ resources and making things more difficult for the labour movements has made exploitation easier, Rönni-Sällinen says.

PAM’s solutions for eradicating labour exploitation (in Finnish)
PAM’s proposals for the next parliamentary period here (in Finnish)

Keywords:

labour exploitation legislation politics

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