A new collective agreement for the IT service sector was concluded

Technology Industries of Finland, the Federation of Professional and Managerial Staff YTN and the Association of IT sector Employees (Tietoala ry) have today (Monday) accepted the settlement that was negotiated last week. Over 70,000 employees are within the scope of the negotiated settlement.

Under the agreement, the primary objective is that pay adjustments are agreed locally while taking into account the company’s circumstances. If agreeing on a local salary settlement fails, salaries will be adjusted in accordance with the so-called fallback clause of the collective agreement.

In accordance with the general policies agreed for the labour markets, the total increase agreed in the fallback clauses is 3.3.% for the 25-month agreement period. The schedule for the increases is as follows:

In the first agreement year, a general pay increase of 1.3% will be applied by 1 March 2020. In the second agreement year, salaries will be adjusted with a 1.2% general increase no later than on 1 February 2021, in addition to which a company or workplace-specific increase of 0.8% will be used for salary increases on 1 February 2021.

The issue concerning the hours included in the Competitiveness Pact was resolved so that working time extensions are primarily agreed through bargaining at the workplace.

If no agreement is found, the employer may assign to employees an additional 16 hours of work in a calendar year based on justified production-related reasons. However, the hours may not be scheduled for weekday holidays or for the Saturday of such weeks unless this is separately agreed upon through local bargaining. In addition, the employer may schedule 8 hours of training for time off. A compensation in line with the basic pay with no additional compensation or increases is paid for all such hours.

“The working time agreement is a compromise that enables the necessary working hours to be maintained and thus it supports competitiveness. The solution will also hopefully promote and develop local bargaining,” says Jarkko Ruohoniemi, Director, Industrial Relations, Technology Industries of Finland.

Further information:
Jarkko Ruohoniemi, Director, Industrial Relations, tel. +358 (0)40 833 9577