New Collective Agreement for Technology Industry Workers Approved – Industrial Union’s Strikes Withdrawn
Technology industry workers now have a new three-year collective agreement after the Technology Industry Employers of Finland and the Industrial Union approved the wage increase negotiation result reached on Thursday evening. Consequently, the strikes announced by the Industrial Union, along with related support measures, will come to an end.
The approved wage agreement will bring a total wage increase of 7,8percent for technology industry workers over three years. The cumulative impact of the agreement on wages throughout the contract period amounts to 8,0percent. The average cost impact over the contract period is 4,6*percent. The negotiation result was reached on Thursday evening under the guidance of National Conciliator Anu Sajavaara and was approved over the weekend.
The new collective agreement will remain in effect until the end of November 2027. A review of its objectives is scheduled for August 2026, at which point the agreement may be terminated.
Considering the generally binding nature of the agreement, it covers more than 90,000 employees.
Local Wage Agreements as the Primary Approach
Wage adjustments are primarily intended to be agreed upon at the local level each contract year, and Technology Industry Employers of Finland strongly encourages its member companies to follow this approach.
If no local wage agreement is reached, wages will be adjusted according to a predefined framework. This fallback mechanism consists of a general wage increase and a company- or workplace-specific components.
- Under the framework, employees’ will receive a 2,1 percent general increase and a 0,4 percent company- or workplace-specific component no later than April 1, 2025, or from the beginning of the nearest payroll period thereafter. The company- or workplace-specific component needs to be distributed according to agreed guidelines.
- In the second contract year, employees’ will receive a 2,3percent general increase and a 0,6percent company- or workplace-specific component no later than March 1, 2026, or at the beginning of the nearest payroll period thereafter. The company- and workplace-specific component will be distributed according to agreed guidelines.
- In the third contract year, employees’ will receive a 2,0percent general increase and a 0,4percent company- or workplace-specific components no later than March 1, 2027, or at the beginning of the nearest payroll period thereafter. The company- and workplace-specific component will be distributed according to agreed guidelines.
Wage Agreement Poses Risks to Finland’s Economy
With the agreement in place, the Industrial Union’s newly announced approximately two-week-long strike threats will be withdrawn. The overtime ban and the support measures announced by AKT, SMU, and JHL will also come to an end.
Jarkko Ruohoniemi, CEO of Technology Industry Employers of Finland, is pleased that the strike threats have been avoided. However, given the current economic situation, he considers the wage agreement unnecessarily high.
– Unfortunately, it is likely that this wage agreement will prove too costly for Finland’s competitiveness. There is still no broad recovery in market demand, and unpredictable geopolitical developments pose significant uncertainties for trade policy, Ruohoniemi says.
The employment situation in the technology industry has deteriorated in recent months, and demand has remained weak.
– The wage agreement will significantly improve employees’ purchasing power, but it will be a heavy burden for many companies. The positive aspect, of course, is that the sector now has industrial peace. Hopefully, other agreements will also be finalized soon so that companies can focus on their business operations, Ruohoniemi adds.
New Collective Agreement for Ore Mines
A new collective agreement has also been reached for ore mines, as the Technology Industry Employers of Finland and the Industrial Union have approved the previously negotiated settlement. The agreement follows the terms of the deal reached for employees in the technology industry.
Negotiations Continue in Other Sectors
Negotiations are still ongoing in other contract sectors of the technology industry. Trade Union Pro and the Federation of Professional and Managerial Staff YTN have both threatened to go on strike and are currently in mediation.
Pro has announced strikes from February 24–28 and March 3–7. YTN has announced four strike days on four consecutive Fridays from February 28 to March 21.
Negotiations on the collective agreements for salaried employees and senior salaried employees in the consulting and design sector, as well as the IT service sector, are also ongoing, with no industrial action announcements made so far.
* The cost impact over the contract period reflects how much higher wage costs will be on average compared to the period before the agreement took effect. In addition to the percentage increases themselves, the timing of the raises also influences the overall cost impact: the earlier the increases take effect, the greater the cumulative cost over the contract period – and vice versa.
Further information
