Collective bargaining overview: Bargaining stalls over pay and conditions in central government, but new settlements are reached in commerce, chemicals and land and sea transport

The SAK trade unions have continued intensive collective bargaining in March, with new agreements emerging in such sectors as commerce, railways, ports and sea transport, and the chemicals industry. Industrial disputes are explicitly ongoing in central government, air transport, in the food industry, and at UPM Plywood.

Collective bargaining on behalf of central government officials and employees is currently making no progress, and the state employer has suspended negotiations. Its offer of increases totalling 6.3 per cent over three years falls clearly below the 7.8 per cent rise approved for several sectors in the present bargaining round.

The SAK-affiliated Trade Union for the Public and Welfare Sectors JHL, STTK-affiliated Trade Union Pro and AKAVA-affiliated Negotiation Organisation for Public Sector Professionals JUKO responded on 19 March by announcing a ban on overtime and shift changes and a ban on accumulating flexitime balances in the central government sector. These bans apply to all central government staff with ordinary employment contracts. This is the first industrial action in the central government sector since 1986.

JHL has approved new terms and conditions of employment for the church, railways, and some smaller sectors. The three-year collective agreement for railways includes wage increases totalling 7.8 per cent.

Collective bargaining has begun with a view to renegotiating the agreements on terms and conditions of employment in the municipal and welfare sectors that are due to expire at the end of April. The scope of ongoing JHL negotiations also includes several collective agreements with Service Sector Employers Palta.

New collective agreement for the retail sector

Theatre and Media Employees in Finland Teme has approved the new collective agreement for the theatre industry. The agreement is valid for three years, with total wage increases of 7.8 percent. The ban on overtime and shift changes in the theatre industry has ended, and the strike warnings affecting theatres have been cancelled.

TeMe has approved a settlement proposal for film and TV productions. Employees in the sector will enjoy pay rises totalling 7.5 per cent over three years.

Service Union United PAM has concluded a three-year collective agreement for the commercial sector, with wage increases totalling 7.8 per cent. PAM has also approved a three-year collective agreement for ski resorts.

The union has turned down a proposed settlement on terms and conditions of employment in the customer service and telemarketing sector and issued a strike warning to seven sector businesses for the period between 8 and 10 April. A two-day strike was already arranged in this sector in March.

PAM is currently engaged in collective bargaining for the tourism and catering sector, security guards, real estate services, and several other service industries.

New agreements for land and sea transport, industrial action in air transport

The Finnish Transport Workers’ Union AKT has approved collective agreements for the stevedoring sector and its enterprises, for Airpro Oy and taxi services, and for six other branches of the road transport sector. These agreements will remain in force for three years, and include general pay rises totalling 7.8 per cent. These agreements are subject to termination in the final year.

The Finnish Seafarers’ Union has approved an extension of its collective agreements for international merchant and passenger ships and for icebreakers until the end of February 2028. The agreements may also be terminated in the final year.

The Finnish Air Line Pilots’ Association SLL has been engaged in collective bargaining with Service Sector Employers Palta on behalf of Finnair pilots since August, and a ban on pilot overtime and standby duties has been in place for several months.

The Finnish Aviation Union IAU announced a ban on overtime and shift changes in air transport services on 17 March. The Railway Union RAU is also currently negotiating two collective agreements for railway staff.

Strike threats in the food industry

The Finnish Food Workers’ Union SEL has turned down a second settlement proposal for the food industry, finding that it would have unreasonably impaired working time in bakeries by allowing employers to unilaterally impose 9-hour working days or six-day working weeks on employees.

On Sunday 23 March SEL launched strike action at three breweries to continue until 28 March. The union called a six-day strike at 150 bakeries in March, and has issued a corresponding strike warning for the period from 31 March to 3 April. A three-day strike warning issued by the union for 13 food industry workplaces has been deferred for two weeks by the Ministry of Economic Affairs and Employment, and is due to begin on 8 April.

SEL is also applying additional bargaining pressure by prolonging its 7 February ban on overtime and shift changes in the food sector until 4 May.

The Industrial Union has approved several three-year collective agreements for the chemicals, technology and wood products sectors, most recently including settlements for the rubber industry and the shoe and leather industry. A new collective agreement for the glazing, construction glazing and glass processing industry will remain in force for four years, subject to termination in the final year.

The Industrial Union has concluded individual agreements with over 70 enterprises in the mechanical forest industry. Bargaining at UPM Plywood has nevertheless failed to achieve any settlement for almost a year. The union reports that the wage increases so far proposed by UPM fall far short of those already agreed in the bargaining sector, and fail to adhere to the general trend.

Together with the Electrical Workers’ Union, the Industrial Union has issued a total of six warnings of one-week strikes at UPM Plywood. A fourth such strike week is currently ongoing.

The Electrical Workers’ Union has begun negotiations in its main bargaining sectors of the electrification and electrical fitting industry, and the energy, ICT and network industry. Collective bargaining by the Finnish Construction Trade Union in the construction industry has made slow progress, and is currently at a standstill. The agreements in this industry expired at the end of February.

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