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Collective Bargaining Structure in Finland Case: Finance Sector Hannu 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 1. 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 Sectoral collective agreement 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 Finland Case: Finance Sector Hannu Kivipato,Trade Union Suora Thank you for your attention!