As of the beginning of March, anyone working on a construction site must have an individual tax number. The purpose of maintaining a registry is to not only ensure that taxes are paid, but to provide a means to check that all the workers on a site are legally employed.
The latest information from the national tax administration shows that there are around twice as many foreigners working in the sector in Finland as was estimated last autumn.
Approximately 53,000 foreigners working in the construction industry have registered for tax identification numbers. During the autumn, it was estimated that there were about 25,000 foreign workers employed on construction sites in the country.
Still some illegals
Jouni Ruotsalainen, the head of the Turku regional office of the Finnish Construction Trade Union, told Yle that the system has not eliminated all irregularities from the sector.
"There are situations in which employers have not informed the tax administration of personal tax identification numbers, even though the workers have them. This makes them illegal labourers," Jouni Ruotsalainen explains.
"Then there are cases in which workers do not have tax identification numbers. These workers are also illegally on construction sites," he adds.
The use of ID numbers is also being introduced on private home construction sites. According to union officials, most private home builders use unauthorized labour.
Substandard wages
The mandatory use of tax identification numbers has not eliminated the problem of some unscrupulous employers paying substandard wages. Most of those subject to this form of abuse, according to Jouni Ruotsalainen, are foreigners who are unaware of their rights.
"Even so, they pay taxes from their small wages. Doing so, they see that they cannot live in Finland on what they are being paid and find out that they should demand more," he relates.
These abuses distort competition and make it harder for honest contractors to get projects.
"Many workers come to this country on poor contract conditions. It gives companies who practice this an edge. Construction work should be done under the terms of the sector and in compliance with collective agreements. There are laws and they should be observed," says Jouni Ruotsalainen.
