Commercial sector`s collective agreement
PAM negotiates collective agreements for Commercial Sector. Collective agreement specifies the minimum terms and conditions of employment such as wages, working time, sick leave, annual leave, wages for the holiday period and holiday bonuses. For example wages should not fall below the minimum wages negotiated by PAM in the collective agreement. It is good to keep in mind that you cannot conclude an individual employment contract on weaker terms and conditions than those agreed upon in the collective agreement.
Employers: Finnish Commerce Federation
Agreement period 1.2.2018-31.1.2020
What is new compared to the previous collective agreement?
The monthly salary of full time working employees and clerical employees will increase by 42 €/mth or 0.26 €/hr from 1 April 2018 and 1 April 2019. For persons on pro rata monthly pay, the increase is based on the same ratio as normally (e.g. for someone working 30 hours the formula is 30/37.5*42 = 34 €/mth).
Pay scales will increase by 1.6% on the same dates. The individual pay and pay scales of supervisors will increase by 1.6% on the same dates. Compensation for shop stewards and health and safety representatives will increase based on a separate agreement.
There is no increase in working time supplements.
The employers’ proposals e.g. on cuts to Sunday supplements were rejected. A worsening of the rules on clerical employees’ working time was also rejected.
Improvements were achieved especially in the assessment of part-time employees’ working time: in future the actual working time of each part-time employee will be checked in six-month periods, unless a longer assessment period is agreed locally.
In future night work must be agreed with the employee, and employers can only require employees to work nights in situations where the night shift could not otherwise be filled. Also, employees were given more possibilities to influence which shifts they work, for example.
The maximum annual leave accumulation was increased to 7 days. Up to now it has been 6.5 days.
In future, the employee’s own notification is sufficient to justify sick leave in situations where health services are not available, for example due to a weekend. Agreement was also reached on so-called compensatory work, for which the employee’s consent is required.
How did the objectives set by PAM work out?
Key amendments to the text:
More hours for part-time employees
• The hours agreed in part-time employees’ employment contracts and actual working time must be compared in half-year periods. If the working time checked does not correspond to what is agreed in the employment contract, the employer must justify significant differences in writing. The employment contract must be updated if working time is longer, as before. A longer assessment period not exceeding a year can also be agreed locally.
• the principles for offering additional work and the proper functioning of these and, for part-time employees, actual total working hours and the trend and forecast trend in working hours are to be discussed with shop stewards.
Wellbeing during working time
• night work must be agreed with the employee. Employers can require employees to work nights, however, if the working shift cannot be filled otherwise. As a rule, night shifts may not start or end between 1 a.m. and 5 a.m. Under certain conditions, employers must provide transport for night workers
• emphasis has been given to the impact on wellbeing at work of shift planning e.g. by increasing employees’ possibilities to influence shift planning and recommendations on shift rotation and allocating days off.
• shifts must be at least 4 hours. At the employee’s request or for a justified reason, shifts may be shorter than this. The justified reason must be discussed with the employee before the work schedule is drawn up.
• the collective agreement states that the purpose of flextime is to give the employee the independence to decide when daily working time starts and ends.
• the maximum number of paid annual leave days increases to 7 days. Up to now it has been 6.5 days.
• participation in activity measures under the Unemployment Security Act is also counted as being prevented from caring for a sick child.
Local agreement that respects employees
• the relationship between local agreement and employment contracts was clarified. Matters agreed locally do not become part of the employee’s employment contract. A local agreement can always be terminated without it affecting the employee’s employment contract. Therefore a workplace agreement is always a separate document.
• compensation for shop stewards and health and safety representatives will increase based on a separate agreement (link to tables).
• the previous distinction between professional groups and the ratio of number of employees has been removed from the calculation of job release times for health and safety representatives, so that in this respect health and safety representatives are in the same position as shop stewards.
• retail supervisors and warehouse and transport supervisors get the right to elect a shop steward and health and safety representative from among themselves.
• the employee’s own notification is sufficient to justify sick leave in situations where health services are not available, for example in the evening, at night, at weekends or on public holidays.
• ground rules were agreed for compensatory work in cases of incapacity for work. Compensatory work may only be done with the employee’s consent.
• the trial period remains 4 months (under the Employment Contracts Act it may be 6 months). However, the employer may extend the trial period due to incapacity for work or family leave by a maximum of one month per 30 calendar days’ period of absence. The employee must be notified of any extension.
• where working time adjustment periods not exceeding 8 weeks are used, the work schedule notice period may be shortened by local agreement to one week instead of the present two weeks. The party to the agreement for the employees is the shop steward. If there is no shop steward, the matter is to be agreed with the relevant personnel group.
• A working time adjustment period of 27-52 may be introduced by local agreement. Such an agreement can be in place for a maximum of 52 weeks and expires at the end of the period without being terminated separately. The period can only be applied to permanent employees or those on fixed-term contracts of at least one year whose weekly working time is at least 35 hours. Part of the working time adjustment must be whole days off. There must be a justified reason based on the production or service activities of the establishment for such an agreement to be introduced and this must be agreed with the shop steward. If there is no shop steward, the matter is to be agreed with the relevant personnel group.
• an employer may unilaterally decide to introduce 38-hour weekly working time and midweek public holiday system instead of an annual leave system.
• for employment relationships starting on 1 April 2018 or after, the language supplement is 3%of the pay scale per language. A 2% higher supplement is paid for above-average language skills. The supplement remains the same for persons who received their language supplements earlier.
• during the period of the agreement, joint PAM-Finnish Commerce Federation working groups will discuss reform of the pay system, development of the position of shop stewards and health and safety representatives and development of e-commerce.
• During the period of the agreement the parties will also review what improvements are needed in the collective agreement of retail supervisors.
EXAMPLES OF RETAIL COLLECTIVE AGREEMENT PAY SETTLEMENT
A full-time salesperson works in a company in Tampere and is on the 3rd year of pay scale B1. Her pay is 1765 €. At the start of April she gets a pay increase of 42 € under the collective agreement, which is paid to all employees in a full-time employment relationship. After the pay increase her pay is 1765 € + 42 € = 1807 €.
At the same time the pay scales are increased by 1.6 per cent. The pay scale in her pay group at the start of April is 1793.
A full-time salesperson comes to work for the same company in June and is placed in the same B1 year 3 pay group. Her pay is determined by the pay scale and is therefore 1793.
A part-time warehouse worker works in a warehouse in Helsinki and is on the 5th year of pay scale B2. His pay is 12.29 €/hour. At the start of April he gets a pay increase under the collective agreement of 26 cents/hour, which is paid to all employees in a part-time working relationship. After the pay increase his hourly pay is 12.55 euros/hour.
At the same time the pay scales are increased by 1.6 per cent. The pay scale in his pay group at the start of April is 12.49 €/hour.
A part-time warehouse worker comes to work for the same company in June and is placed in the same pay group. His pay is determined by the pay scale and is therefore 12.49 €/hour.