Finland Times

The Supreme Court did not allow further appeals.

Earnings by distributors working for the Helsinki-based leaflets delivery company Helsingin Jakelu-Expert had amounted to two or three euros per hour, while the prevailing agreement of the Postal and Logistics Workers Union would have been over eight euros.

The employer had signed an agreement with a union established by people close to the management of the company.

The court found out the union did not truly represent the workers and, for example, had no shop steward structure. The verdict established that the union was promoting the interests of the employers and accordingly the tariff agreement signed with it was not valid.

Under the Finnish law, employers must pay salary levels that match the rates of the prevailing union of a sector. The system known as "general applicability" has come under intense criticism from employers and liberal economists in recent years.

In this case, the employer argued that the judicial decision limits "the freedom of agreement" between employers and employees.

News about the court decision coincided with the announcement that the state-owned Finnish Post will dismiss over 600 more employees. In Finland, normal postal delivery handles also bulk advertisement distribution, but competition from independent commercial distributors has been heavy.

A lower court first decided the issue in favor of the delivery company in 2014, but an appeals court accepted the complaint by the workers. As the supreme court of Finland did not authorize a further appeal, the appeals court decision got validity this week.

The commercial distribution industry recruits often unskilled immigrants and young people. Finnish Workers' Unions have targeted these groups with campaigns underlining the legal rights of the workers.

The distributor that now lost the case will have to pay adjusted salaries dating back from 2009. Industry sources have told local media the court decision is likely to trigger new court cases and change the practises.