It Collective Agreement Finland

For example, the following working conditions are based on collective agreements: our collective agreements contain derogations from Finnish labour law and include several possibilities to derogate from collective agreements through company- or workplace-specific agreements. In Finland, there is no system for setting a single national minimum wage. However, most workers are subject to the collective agreements established by the collective agreement for the sector in which they work, either because their employer is a member of the employers` organisations that signed it, or because the agreement has been made compulsory for all employers in the sector as part of the renewal procedure (see above). For those who do not agree, the Employment Contracts Act provides that workers must receive a “normal and fair wage” for the work performed, although the rates of pay set in legally binding sectoral agreements set the minimum rates for each sector. In the absence of an agreement, the employer may, for reasoned reasons of production, allocate 16 hours of overtime work to workers in a calendar year. However, the hours should not be scheduled for the holidays of the week or for the Saturday of these weeks, unless this is agreed separately through local negotiations. In addition, the employer may provide 8 hours of training for leisure. For all these hours, an allowance is paid according to the basic salary, without any additional allowance or increase. However, unlike previous general income policy regimes, which cover all workers, the 2011 Framework Agreement only applied to sectors with existing collective agreements. As in the past, a number of non-remuneration issues were addressed (see The Theme of Negotiations).

Since the expiry of the Competitiveness Pact in 2017 – the exact date varied between the agreements – subsequent negotiations have returned to sectoral level rather than national negotiations. However, recent experience indicates that there is no guarantee that Finland will continue to do so indefinitely, as well as other Nordic countries which, for more than a hundred years, have been working with employers on development and cooperation in the labour market. In addition, collective agreements are used to agree, for example, on the reasons for employment, wage increases and rules on working time, overtime, weekday holidays, evening and weekend work. In the first year of the contract, a general salary increase of 1.3% is applied until 1 March 2020. . . .