Legal Alert – The Pact for Employment and Growth Confirmed
The national labour and employer confederations of Finland have confirmed that sufficient coverage for centralized national labour market agreement called the Pact for Employment and Growth (the Pact) was achieved after a sectoral bargaining round between trade unions and employer organizations. The Pact covers over 90% of the employees in Finland.
The most notable consensus achieved in the Pact concerns a moderate salary increase for the coming two years. The monthly wages and salaries of all employees will rise by EUR 20 during the first year of the Pact, and by 0.4% in the second year. If the salary increase affects additional allowances due to structure of a particular collective bargaining agreement, the additional allowances will increase in the same ratio as the basic salary.
In addition, the Pact commits the confederations to reach a settlement for the pension reform, which includes a possibility to increase the retirement age, by autumn 2014. Negotiations regarding the pension reform are expected to start in the near future since the Pact was confirmed and the report of the Pension Panel, a group of pension experts appointed by the confederations, was released in the end of October.