Collective Bargaining Collective Bargaining Structure in FinlandStructure in Finland

Case: Finance SectorCase: Finance SectorHannu Kivipato,Trade Union SuoraHannu Kivipato,Trade Union Suora

Budapest, 5-7 December 2003Budapest, 5-7 December 2003

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

Industrial relations in Finland

Levels of negotiations Levels of negotiations and agreementsand agreements

1.1. Income policy agreementsIncome policy agreements* Since 1968* Since 1968

• 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

Parties

• legislation – labour laws, social security legislation, unemployment legislation…

• social and education policy, financing

• taxation

• pay rises – frame and level

Issues

• 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

Character and process

Levels of negotiations Levels of negotiations and agreementsand agreements

2. Central collective agreements2. Central collective agreements

3. Sectoral level3. 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 Sectoral collective agreementagreement

• 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”

Trade Union SuoraTrade Union Suora

• 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

Suora is a member inSuora is a member in

– 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

Banking as a business in FinlandBanking as a business in Finland

• 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

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

Collective agreement in the banking sector

Collective agreement in the banking sector

• 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 agreementMain 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.

Main issues in the collective agreementMain issues in the collective agreement

• labour laws for all wage earners

• collective agreements– better conditions– issues which are not in the law

(saleries etc.)– special needs in the sector

Collective agreements versus labour laws?

Collective agreements versus labour laws?

• personnel policy

• structural, business changes, reorganisations – impact to employees´situation

• bonus rewards for economical results

Company level issuesCompany level issues

• 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 CADisagreements 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!!!

Disagreements about interpretation of CADisagreements about interpretation of CA

Collective Bargaining Collective Bargaining Structure in FinlandStructure in Finland

Case: Finance SectorCase: Finance SectorHannu Kivipato,Trade Union SuoraHannu Kivipato,Trade Union Suora

Thank you for your attention!Thank you for your attention!