Collective Bargaining Structure in FinlandCase: Finance SectorHannu Kivipato,Trade Union Suora Budapest, 5-7 December 2003
Industrial relations in Finland Background • trade unions strong position in the society • tradition of collective agreeing since 1945 • high organizing level: 70–90 % • unions organize members mostly sectorally • employers organizing high
Industrial relations in Finland Background • collective agreements mainly on sectoral level • covering most of the wage earners • numerically a lot of company level agreements – covering less wage earners • collective agreements generally binding minimum level agreements
Levels of negotiations and agreements • Income policy agreements * Since 1968
Parties • Central employers organisations (5) • Central employee organisations • Central Organisation of Finnish Tarde Union (SAK) • Finnish Confederation of Saleried Employees (STTK) • Conf. of Unions for Academic Professions (AKAVA) • The Goverment
Issues • legislation – labour laws, social security legislation, unemployment legislation… • social and education policy, financing • taxation • pay rises – frame and level
Character and process • not a binding collective agreement • sectoral or company level negotiations of acceptance for own field (2-3 weeks) • if not enough acceptances from the sectoral partners – IC agreements lapses • after this negotiations on sectoral level • can take long • probability of industrial actions, strikes grow
Levels of negotiations and agreements 2. Central collective agreements 3. Sectoral level
2. Central collective agreements • general agreements for all wage-earners • parties: central organisations • sectoral unions – possibility to accept or not 3. Sectoral level • working conditions for the sector • parties: sectoral trade union and sectoral employers association
Trade Union Suora • main field as a trade union in banking and finance business • only union in the banking sector • sectoral collective agreement – covering all private banks • membership level 85 per cent • 90 per cent of members are women • 36.000 members – 25.000 in banking • others • social and private insurance • state owned ”monopol companies”
Suora is a member in • Finnish Confederation of Salaried Employees - STTK • 634.000 members • Nordic Finance Sector Union - NFU • 165.000 members in Scandinavian countries • Union Network International – UNI • 15.500.000 members worldwide
Banking as a business in Finland • all private banks • commercial, co-operative and savings banks • very high level of technology • some daughters/branches of internatinal banks • different business strategies • Scandinavian-Baltic Sea financial company - Nordea • Finnish financial company – Sampo Bank • local/regional banks – co-operative and savings banks
Collective agreement in the banking sector • covers the whole sector • all private bank and the whole country • one exception: Sampo bank • parties • SUORA and Bank Employers Association PATO • according to law of collective agreements generally binding
Collective agreement in the banking sector • all employers obligation to carry out as a minimum level agreement • main elements • better salary and work conditions • labour peace for each agreement period
Main issues in the collective agreement • scope of the agreement – all except highest management • terms of hiring, fixed-period contracts, termination of employment • working time, compensations of overtime, exceptional working etc. • day offs, holidays, paid leave
Main issues in the collective agreement • salary system (classification of the work), wages, task and competence bonus • rights to absences because of parental leave, sickness, child health care etc. • ”trade union rights” – shop steward´s right for negotiation, information, using working time for negotiations • collection of memebership fees • separate agreements of education, pension, part-time work, saturdays work etc.
Collective agreements versus labour laws? • labour laws for all wage earners • collective agreements • better conditions • issues which are not in the law (saleries etc.) • special needs in the sector
Company level issues • personnel policy • structural, business changes, reorganisations – impact to employees´situation • bonus rewards for economical results
Disagreements about interpretation of CA • negotiations between shop steward and employers representant • workplace company level • if not solution negotiations between union and employer´s association • if not solution Labour Court
Disagreements about interpretation of CA • if disagreement about law • nogotiations at the company level • if not solution common court of justice Shop stewards and union negotiate only for members!!!
Collective Bargaining Structure in FinlandCase: Finance SectorHannu Kivipato,Trade Union Suora Thank you for your attention!