Labour Ministry: Interim period for labour from new EU states causes problems

The Ministry of Labour has admitted that legislation which took effect in May 2004 limiting the free movement of labour from new member states of the European Union has not had the desired effect. In fact, an assessment conducted by the ministry points to a number of negative consequences of the two-year interim period. Under the law, which runs out in May 2006, citizens of countries that joined the EU this year need a work permit before they can take employment in Finland. Finnish trade unions, fearing a flood of cheap Estonian labour onto the Finnish labour market, were among the main proponents of the measure. However, loophole allows Finnish companies to recruit Estonian workers through labour rental agencies. The arrangement allows Estonians to work in Finland as long as they have a nominal Estonian employer. The situation has actually led to a decline in applications for work permits by citizens of new EU member countries. Now, just over 200 work permits are granted to citizens of the countries in question. Before the EU expansion in May, the rate outside the summer season was between 600 and 800 a month.