New state-owned company to employ people with partial ability

A state-owned special assignment company named Työkanava Ltd will be established in Finland with the view to promote the employment of people with partial work ability who are in the most difficult labour market position.

The company would support their skills so that the people could find employment in the open labour market after working at Työkanava, said the Ministry of Economic Affairs and Employment in a press release on Thursday.

In addition, the new company will develop the intermediate job market in a new way.

The government submitted the proposal regarding setting up the new company to the Parliament on Thursday.

The company is set to launch operations in 2022. Where applicable, the company has been modelled after Sweden’s Samhall, which has operated for a long time.

“The right and opportunity to work according to their abilities is important not only for the people with partial work ability and but for the Finnish society as a whole. From this group of people, Työkanava Ltd will be able to employ the most disadvantaged people, whose employment prospects have so far not markedly improved despite different measures and services. The launch of the company is also proof that Finland is implementing its international obligations to the UN in accordance with the Convention on the Rights of Persons with Disabilities,” said Minister of Employment Tuula Haatainen.

Ownership steering for Työkanava Ltd is the responsibility of the Ministry of Economic Affairs and Employment.

The aim is for Työkanava Ltd to operate throughout the country, but the operations would start gradually. Työkanava could make use of existing services and work together with other intermediate labour market operators.

Työkanava would be financed with an initial capital of EUR 20 million allocated to it in the Budget from the Sustainable Growth Programme for Finland (EU Recovery and Resilience Facility RRF).

In addition, the company would be provided with an annual appropriation of EUR 10 million, with the aim of employing 1,000 persons in the long term. The company would also generate income from selling its services.

Employment with Työkanava Ltd would be the option of last resort when all other opportunities for finding employment have been exhausted.

At present, the TE Offices have registered more than 30,000 unemployed jobseekers who have been diagnosed as having reduced capacity to work. Of them, the most disadvantaged are people who have an illness or disability and who are aged over 55 and have a low level of education.

Employees would be hired directly by Työkanava under an employment contract. Their remuneration and other terms of employment would be determined under employment legislation and the applicable collective agreement.

The company would have no public administration functions and it would not exercise public authority. The only avenue available to Työkanava in selecting employees would be the TE Office, which acts as a public authority.

TE Office would direct people with partial work ability to employment with Työkanava Ltd in a centralised manner and based on the company’s needs.

“Employers’ attitudes towards the employment of people with disabilities and long-term illnesses are increasingly more positive, and I am very pleased about it. People with partial work ability have a wide range of skills and their educational background is broad and diverse. We hope that Työkanava will further lower the threshold for employing people with partial work capacity,” Haatainen said.