How We Influence

Freedom of association and assembly are fundamental rights guaranteed in the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, the European Convention on Human Rights, and the Charter of Fundamental Rights of the European Union. The right to organize professionally, included in these rights, is reinforced in numerous international agreements and national legislation.

According to Section 11 of the Finnish Constitution, “everyone has the freedom of association. This freedom includes the right to establish an association without prior permission, to belong to or not to belong to an association, and to participate in the activities of an association. Similarly, the freedom of professional association and the freedom to organize for the protection of other interests are guaranteed.”

Freedom of association is not limited solely to the rights of employees but is a universal basic and human right, which includes the freedom to assemble and organize for any lawful purpose.

Throughout history, freedom of association and related collective bargaining negotiations have largely been seen as workers’ rights to protect their position in relation to employers. Freedom of association has been challenged with reference to competition law when it comes to the right of independent professionals to organize and advocate for their interests. Negotiating terms and conditions of work for non-employees has been considered as forming anti-competitive practices prohibited by EU and national competition law, such as cartels.

Fundamental rights are at the top of the hierarchy of legal norms and take precedence over other legislation. In legal interpretation, a lower-level regulation must not contradict a higher-level regulation. Competition law is considered ordinary legislation, primarily enacted to protect consumers and users, not to dictate terms and conditions of employment.

EU law is an essential part of the Finnish legal system. If national legislation conflicts with EU community legislation, Finnish courts should primarily apply EU legal rules. According to the case law of the EU Court of Justice and a few member states, competition law does not extend to restrict collective bargaining negotiations between workers and employers.

In late September 2022, the Commission approved guidelines on the application of EU competition law to collective agreements concerning the working conditions of self-employed workers, which is one of the most significant steps in the history of the trade union movement. These guidelines clarify how self-employed workers can collectively negotiate better working conditions without violating EU competition rules. In other words, the guidelines ensure that trade unions have the opportunity to negotiate for the working conditions of self-employed workers in a weaker bargaining position, just as they have negotiated for employees’ working conditions in the past. The guidelines make it clear that EU competition law does not prevent independent professionals from engaging in collective bargaining negotiations.

The guidelines highlight circumstances in which certain self-employed individuals can engage in collective bargaining negotiations to improve their working conditions without violating EU competition law. The guidelines clarify in particular that competition law does not apply to self-employed individuals who are in a situation similar to that of employees. These include, among others, self-employed individuals who:

• provide services exclusively or mainly to one company,
• work alongside employees, or
• offer services through or to a digital platform for work intermediation.

The Commission does not enforce EU competition rules against the collective agreements of such self-employed individuals whose bargaining position is weak. This is the case, for example, when the negotiating power of a self-employed individual is weaker compared to that of a financially stronger company, or when they engage in collective bargaining negotiations in accordance with national or EU legislation. Legislative conflict has hindered trade unions’ ability to negotiate working conditions as involuntary self-employment and non-employment work increase. As employment shifts towards involuntary self-employment, a group of individuals falls outside the protection provided by collective agreements and labor laws.

The Commission’s inquiry began in June 2020 as a result of the labor movement’s years of tireless advocacy. Its goal has been to clarify the conflict between fundamental rights and competition law and to ensure that EU competition rules do not prevent collective agreements aimed at improving the working conditions of self-employed individuals.

With the guidelines, legal uncertainty has been eliminated, benefiting a large portion of the EU’s over 24 million self-employed and freelancers. In the cultural sector, nearly half of the workers are self-employed professionals.

In Finland, collective bargaining is regulated by the Collective Agreements Act, which applies to agreements concerning employment relationships. Following the completion of the Commission’s legislative project, Finland must also ensure that national legislation recognizes the right of self-employed professionals to organize and negotiate on their behalf, and that the Collective Agreements Act does not restrict the freedom of self-employed individuals to organize.