Helsinki (28.11.2011 - Juhani Artto)

Then the trade union of transport drivers and port workers AKT and its employer counterpart agreed on details on how to apply the framework agreement, approved in October by the labour market confederations.

And so, the same morning these various confederations concluded that support for the agreement is broad enough to take effect. At noon the government announced that it had come to the same conclusion.

This means that all public sector employees and 91 per cent of the private sector employees are now covered for the next two years (or 25 months) by the regulations agreed upon in the framework agreement. Both union leaders and government representatives have characterized the comprehensive settlement’s overwhelming reach as a historic achievement.

Trade union leaders emphasize that the agreement significantly increases the predictability of the economy and effectively defends the purchasing power of workers and salaried employees. The agreement also brings qualitative improvements to several hundred collective agreements, updated on the basis of the framework agreement.

Employee groups that are not covered by agreements applying the framework agreement include the construction and food workers and a third of senior salaried employees. The Construction Trade Union let it be known on October 17 that it is not prepared to negotiate on the basis of the framework agreement. In the food industry, employers were not willing to negotiate on how to apply the framework agreement as the agreements, signed in May 2010, are still in force until March 2014.

As for the third group, senior salaried employees (circa 70,000 persons), the situation remains more problematic. From the trade union side the employers are entirely to blame for why this set of employees are not covered by the framework agreement. These employees have not yet managed to obtain any kind of collective agreements to provide them with job and other security as their employers have always totally rejected proposals for collective bargaining on their senior salaried employees' working conditions.

Read more:  The 25-month agreement between labour market confederations will raise wage and salary earners' purchasing power  (14.10.2011)