Collective bargaining overview: Most collective agreements settled, but negotiations continue in aviation

Most of the collective agreements that have expired since last autumn have now been renegotiated. Sectoral settlements on terms and conditions of employment reached by SAK trade unions in May included central and local government, wellbeing services counties and construction. Progress has been less brisk in collective bargaining for employees in air transport.

The Trade Union for the Public and Welfare Sectors (JHL) and other public sector staff organisations secured settlements with Local Government and County Employers (KT) at the beginning of May on terms and conditions of employment in municipalities and wellbeing services counties. These agreements are now in force until the end of February 2028. Pay rises over this period of just under three years will total 7.37 per cent, matching the nationwide trend of 7.8 per cent for the full three years.

A decision was also taken to prolong a salary programme agreed for the municipal sector in 2023. This programme boosts municipal sector salaries by a total of 1.8 per cent above the agreed increases.

JHL also approved a new General Collective Agreement for Central Government in early May. This agreement for exactly three years will increase salaries by a total of 7.8 per cent, and may be terminated in its final year.

A new collective agreement has also emerged ifor universities after JHL and the other negotiating parties approved a proposal from the National Conciliator on 21 May. The new deal for university employees will apply for three years, with pay increases totalling 7.8 per cent and an option to terminate in the final year.

The settlements reached in this collective bargaining round have largely echoed the agreement for technology industries concluded by the Industrial Union in February, meaning a three-year agreement period with pay rises totalling 7.8 per cent and a facility for termination in the final year. Besides central and local government, such deals were also reached in May for all collective bargaining sectors in construction, electrification and electrical installation, and energy.

Industrial action continues in aviation

The Finnish Aviation Union IAU has continued efforts to renegotiate the collective agreement for air transport services that ended in March. The union turned down a settlement proposal for the sector at the end of April, arguing that it did not accommodate the complete freeze on pay rises that occurred in air transport services in 2021 and 2022. This meant that pay in aviation had lagged behind remuneration in other sectors. IAU feels that the new collective agreement should take this factor into account.

The union has called four work stoppages in air transport services, and has also announced new stoppages to take place at the end of May and the beginning of June.

The Finnish Air Line Pilots’ Association SLL has been negotiating terms and conditions of employment for Finnair pilots with Service Sector Employers Palta since August 2024. SLL now reports some progress in negotiations, and has suspended all industrial action, including its sustained ban on pilot overtime and standby duties.

The Finnish Transport Workers’ Union AKT has negotiated a settlement proposal concerning the collective agreement for Finnair cabin crews. The governing bodies of the parties to the ongoing dispute will now consider this proposal.

The Industrial Union reached a settlement on terms and conditions of employment at UPM Plywood in May. The deal came in the wake of a protracted strike called at the company by the Industrial Union and the Finnish Electrical Workers’ Union. This industrial action continued for nearly ten weeks.

Negotiations on new collective agreements will be monitored on the Finnish-language SAK website.

Article revised on 21 May at 14:40 o’clock following news of the settlement in higher education.