Some industries still lacking collective agreements

A comprehensive incomes policy settlement was concluded in Finland in December 2004. The settlement covered nearly 90 per cent of employees until autumn 2007. Since this deal was signed, some of the industries that remained outside of the original settlement have also concluded independent collective agreements of corresponding content. Parallel agreements of this kind were made in such areas as the building technology sector of the Finnish Electrical Workers' Union, where a deal was negotiated on behalf of about 10,500 employees at the end of 2004.

Some affiliates of the Central Organisation of Finnish Trade Unions &#;8211 SAK have also continued their collective bargaining activities during the current year. At the end of March the Construction Trade Union reached a settlement covering all of its branches, including about 50,000 employees working in the building sector. These new agreements will last for three years, which is a little longer than the agreements concluded under the main comprehensive incomes policy settlement. Under escape clauses included in some of the agreements – including the building sector deal – the Construction Trade Union may nevertheless terminate the agreement after only two years in respect of use of foreign labour or contract work if the employers fail to comply with their agreed obligations. The Construction Trade Union collective agreements provide for pay rises totalling 6.8 per cent over the three-year period.

The Finnish Cabin Crew Union, which is now an SAK affiliate, also reached a settlement on pay and conditions of service at the end of March. This sector is now, for the first time, covered by a nationally binding, comprehensive collective agreement that applies in practice to nearly 2,000 flight attendants. The Union successfully resisted the employers' efforts to cut salaries and otherwise impair conditions of service, and the outcome was an agreement in line with the terms of service and pay rises of the national comprehensive incomes policy settlement. The agreement was sufficient to head off a strike by flight attendants that would otherwise have paralysed air traffic over the important Easter holiday weekend.

Overtime ban in the paper industry, strike threat by dockers

Collective bargaining is still continuing in a few industries organised by SAK-affiliated trade unions. The Paperworkers' Union has yet to conclude an agreement on behalf of about 27,000 paper industry employees, the Finnish Transport Workers' Union – AKT is still negotiating a deal for 4,500 stevedores and 1,000 warehouse terminal workers in the forwarding sector, and Service Union United – PAM is seeking a settlement for 4,500 hairdressers.

The bargaining situation in the paper industry is unusual for Finland, in that instead of the Paperworkers' Union, this time it was the Finnish Forest Industries Federation – representing the employers – that chose to remain outside of the national comprehensive incomes policy settlement. The employers are calling for substantial concessions in the industry collective agreement, including a two-day waiting period before sick pay begins and the right to divide the employee's annual holiday into several periods. They have also refused to consider the proposals of the Paperworkers' Union until a settlement has been reached on their own demands.

SAK President Lauri Ihalainen disapproves of such negotiating behaviour by the employers:

"With the best will in the world there is no way to characterise the actions of the Finnish Forest Industries Federation at the negotiating table as constructive and conciliatory. On the contrary, the employers have done their best to provoke the union by declaring negotiating objectives of their own, such as a waiting period for sick pay, which is also a major issue of principle in itself," Ihalainen remarked in March.

The Paperworkers' Union has endeavoured to accelerate the sluggish bargaining process by declaring an overtime ban in the paper industry. This has already led to stoppages in some production lines. The union views this fact as an indication of undermanning at workplaces. In a sympathetic action, the Swedish paperworkers' union Pappers has placed an embargo on the Swedish paper industry. This measure seeks to prevent any transfer of production from Finland to Sweden on account of the bargaining situation in the former country.

The Finnish Transport Workers' Union – AKT has been negotiating on a new collective agreement for Finland's stevedores since November. The main problem in these negotiations has been the status of temporary workers at the ports. According to AKT, temporary workers are currently being used as an alternative to hiring more permanent employees. Up to half of the stevedores working at some of Finland's ports may have been employed on a temporary basis. At the beginning of April AKT issued a strike warning covering all of Finland's ports. The strike is due to begin at 06.00 a.m. on Friday 29 April unless a settlement is reached before this time. AKT is also still seeking a collective agreement for warehouse terminal workers in the forwarding sector.

The collective agreements for the paper industry, stevedores and warehouse terminal workers all expired in mid-February. The agreement for the hairdressing sector, on the other hand, will expire at the end of April. Efforts are being made to negotiate a new settlement before this deadline.