Collective agreements for salaried employees and senior salaried employees,

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1 Annex to member bulletin 3/2013 Tiihonen, Ruohoniemi 1 November 2013 Collective agreements for salaried employees and senior salaried employees, The Federation of Finnish Technology Industries has renegotiated its collective agreements for non-salaried employees, salaried employees and senior salaried employees. This bulletin sets out the key amendments made to the collective agreements for salaried employees and senior salaried employees. We shall issue separate advice on the collective agreements for non-salaried employees. The new collective agreements are based on preparation work conducted between the sector federations and on the pact for employment and growth concluded between the national labour and employer confederations. The revised agreements take effect on 1 November This date will also mark the entry into force of amendments to the terms of the collective agreements unless other implementation arrangements have been specified at the relevant points of the agreements. The salary settlement will be negotiated locally at workplaces with a view to revising salaries primarily in response to local requirements. The agreements also include a subsidiary procedure whereby salaries will be revised through a general increase as of the start of the salary payment period beginning at a time to be decided by the employer but no later than 1 March 2014 or soonest thereafter. The subsidiary procedure general increase will be implemented through salary increases made during the collective agreement period when so determined at the time of the increase. The modifications made in the collective agreement are also being explained at information sessions arranged in some localities. We have separately invited affiliated enterprises to sessions concerning the collective agreement for salaried employees, and we shall also send an invitation with respect to senior salaried employees. The new collective agreements will be available for downloading from the Technology Industries website at > Labour Market > Collective agreements. The revised agreements The Federation of Finnish Technology Industries and the Pro trade union have concluded a collective agreement for salaried employees in technology industries. A collective agreement for senior salaried employees in technology industries has also been concluded by the Federation of Finnish Technology Industries and the Federation of Professional and Managerial Staff (YTN). These agreements take effect on 1 November 2013 and end on 31 October Modifications to the agreements take effect on 1 November 2013 unless other arrangements have been specified concerning the entry into force of certain individual agreement clauses. Under the pact for employment and growth, the national labour and employer confederations will agree on the cost impact of the salary settlement for the third year in June The salary settlement will be implemented in the technology industries in the same way as in the previous years of the agreement period.

2 2 If the national labour market confederations fail to reach a negotiated settlement on or before 15 June 2015, then the sector federations will negotiate on implementation of the salary adjustment for the third year by no later than 30 June If the salary adjustment negotiations between the sector federations are inconclusive, then the Parties may terminate the collective agreement with effect as of 31 October Salary increases The salary increase for the first and second agreement years has been settled in the collective agreements. The salary adjustment for the third agreement year will be negotiated in the foregoing manner. The workplace procedure for negotiating and agreeing on salary increases will be the same in all bargaining rounds. We shall circulate a new member bulletin concerning the increase in the third agreement year. Workplace co-operation concerning salary increases Salary settlements will be negotiated locally. Salaries will be primarily revised at workplaces in response to conditions within the enterprise. A procedure for achieving this aim has been incorporated in the agreement, whereby the manner, time and size of salary increases are freely negotiable. The federations stress the importance of negotiating the salary increase and its parameters locally. Bargaining will allow for the financial, order book and employment situation at the enterprise or workplace, and for cost competitiveness in the market, with a view to supporting incentives for salary formulation, an equitable salary structure and salary grading. The goal is a negotiated salary settlement reflecting the situation and needs of the workplace and increased productivity. Manner, time and size of salary increases in 2013 (the first agreement year) 1. The primary aim is to seek a salary settlement covering all employees at the individual workplace. The manner, time and size of salary increases will be specifically determined for each enterprise and workplace. A local settlement will arise if any of these factors has been agreed. Individual graded salary increases are recommended. The settlement will be concluded with the shop steward for salaried employees and with the elected representative for senior salaried employees by no later than 30 November The parties may also agree to extend the negotiating period locally. If no representative has been elected for the senior salaried employees, then the settlement may be concluded with them in the manner that they jointly agree. 2. If no local settlement is achieved, then salaries including benefits in kind will be increased by EUR 20 per month across the board. The increases will be implemented at a time decided by the employer, but by no later than the start of the salary payment period beginning on 1 March 2014 or soonest thereafter. All salary increases implemented during the collective agreement period including individual increases will implement the general increase when this is stated at the time of the increase, but changes arising from redefining the minimum salaries of salaried employees will not be included when assessing implementation of the increase. Manner, time and size of salary increases in 2014 (the second agreement year)

3 3 1. The primary aim is to seek a salary settlement covering all employees at the individual workplace. The manner, time and size of salary increases will be specifically determined for each enterprise and workplace. A local settlement will arise if any of these factors has been agreed. Individual graded salary increases are recommended. The settlement will be concluded with the shop steward for salaried employees and with the elected representative for senior salaried employees by no later than 31 October The parties may also agree to extend the negotiating period locally. If no representative has been elected for the senior salaried employees, then the settlement may be concluded with them in the manner that they jointly agree. 2. If no local settlement is achieved, then salaries including benefits in kind will be increased by 0.4 per cent across the board. The increases will be implemented at a time decided by the employer, but by no later than the start of the salary payment period beginning on 1 March 2015 or soonest thereafter. All salary increases implemented after the increases of the first agreement year including individual increases will implement the general increase when this is stated at the time of the increase, but changes arising from redefining the minimum salaries of salaried employees will not be included when assessing implementation of the increase. Implementation of salary increases in payroll administration for salaried employees - Order of calculation: The foregoing increases will be made first at the time of the increase at each workplace, followed by adjustments with the new job requirement category salaries. - Job requirement category salaries: The new job requirement category salaries are shown in the attached annex. Separate bonuses in the collective agreement for salaried employees The following separate bonuses will be payable from the start of the salary payment period beginning on 1 March 2014 or soonest thereafter: Hourly shift work bonus as of the start of the salary payment period beginning on 1 March 2014 or soonest thereafter: Monthly salary (EUR) including benefits in Evening shift Night shift kind cents cents less than or more Mining work bonus

4 4 A salaried employee regularly working underground shall be paid, independently of any minimum pay comparison figure, a separate monthly bonus of EUR 251 until the end of the salary payment period ending on 28 February 2014 or soonest thereafter, and EUR 254 as of the salary payment period beginning on 1 March 2014 or soonest thereafter. If part, but more than half, of the regular hours of work of a salaried employee are spent underground, then the mining work bonus shall be reckoned by multiplying the average monthly number of hours worked underground by EUR 1.46 until the end of the salary payment period ending on 28 February 2014 or soonest thereafter, and EUR 1.48 as of the salary payment period beginning on 1 March 2014 or soonest thereafter. A sum reckoned by multiplying the number of hours worked above ground by EUR 1.46 or by EUR 1.48 respectively according to the foregoing dates shall be deducted from the mining bonus for any time worked above ground by a salaried employee regularly working in a mine. A salaried employee regularly working above ground at a mine shall be paid a corresponding hourly mining bonus of EUR 1.46 or EUR 1.48 respectively according to the foregoing dates for any time worked underground. Bonus for uninterrupted and continual shift work For each regular working hour worked on a Saturday, a salaried employee in uninterrupted three-shift work and continuous two or single shift work shall be paid a separate bonus of EUR 2.09 until the end of the salary payment period ending on 28 February 2014 or soonest thereafter, and EUR 2.11 as of the salary payment period beginning on 1 March 2014 or soonest thereafter. CERTAIN AMENDMENTS TO THE COLLECTIVE AGREEMENTS A. Collective agreement for salaried employees in technology industries Salary regulations Individual wage element An amendment to the definition of the individual wage element made when concluding the agreement now stipulates that the individual element of the wage of a salaried employee shall be no less than 3 per cent and no more than 25 per cent of the job-related element of the wages concerned. Before introducing the new regulations the employer shall revise the competence evaluation system and supervisors shall perform a competence evaluation using the revised evaluation system. The average percentage of the locally determined individual elements in the wages of salaried employees shall vary between 11 and 17 per cent. Determinations under the new collective agreement must be introduced by no later than 1 June Substitution The entries concerning substitution were specified and a new clarifying implementation regulation was included in the collective agreement.

5 5 Payment of salaries Since the start of July 2013 the main rule governing salary payment under the Employment Contracts Act 1 has required payment into the bank account designated by the employee. The necessary adjustments and specifications were made to the collective agreement. Older employees The career span scheme measures to prolong working careers The federations have prepared a joint technology industries career span scheme publication providing examples of practical measures for prolonging working careers. These measures may concern such aspects as management, career planning, expertise and skills, modification of duties, and various working time scheduling arrangements. The career span scheme publication is available in Finnish from the website of the Federation of Finnish Technology Industries at > työmarkkinat >työsuhdeasiain neuvonta ja ohjeet. Prolonging working careers - performance appraisal The employer and salaried employee attaining the age of 58 years will discuss available measures for helping an older salaried employee to cope at work. Exchange of seniority bonus for time off The employer and salaried employee attaining the age of 58 years may conclude an annual written agreement that the seniority bonus or part thereof earned by the employee will be exchanged for corresponding time off. The time off may be taken after the time of reviewing the seniority bonus. The employer and the salaried employee will agree on the time of taking the time off or on the procedure for taking time off. Seniority bonus or part thereof shall be converted into time off as follows: Seniority bonus monthly salary/21 = number of days off The salary for regular working hours will be paid to the salaried employee for the time off. Working time regulations Compensation for working time reduction leave may now be agreed with a salaried employee during the employment either for one calendar year at a time or until further notice. A clarifying implementation regulation on this subject has been included in the collective agreement. Guidelines on minimum terms and conditions of employment of posted workers with respect to salaried employees The federations have prepared guidelines on key salary, working time and annual holiday regulations applicable to posted workers in the technology industries. By complying with these guidelines employers and salaried employees may ensure that salaries and working 1 Työsopimuslaki, no. 55 of 2001

6 6 time satisfy the minimum requirements of Finnish legislation. The guidelines do not constitute a collective agreement or any part thereof. The guidelines are intended for foreign enterprises and their salaried employees who arrive in Finland to work and are governed by the Posted Workers Act 2. The guidelines will also be useful to subscriber enterprises and labour protection authorities. There are three kinds of posted worker: employees of foreign subcontractor enterprises (subcontracting), employees who are sent to work for establishments or enterprises within the same corporate group (foreign postings), and employees of a foreign employment agency (agency workers). The guidelines are available in Finnish from the website of the Federation of Finnish Technology Industries at > työmarkkinat >työsuhdeasiain neuvonta ja ohjeet. Development projects The federations have agreed on several projects to improve regulations governing terms and conditions of employment and the world of work more generally. The aims of these projects also serve significant employer interests. Some of the more important of these are improvements in salary regulation, the effectiveness of staff representation, the effectiveness of agreed regulations governing working time flexibility, and the use and effectiveness of working time banks at workplaces. Besides the foregoing development projects, the federations will continue work to promote job satisfaction and gender equality. B. Collective agreement for senior salaried employees in technology industries Job satisfaction and older employees Measures to prolong working careers The federations will continue to support the ongoing Good work - Longer career project and will also promote deployment of the career span scheme at workplaces. This scheme is suitable for application to the entire staff of a workplace, even though the Federation of Professional and Managerial Staff (YTN) was not involved in its construction. Together with the Finnish Metalworkers Union Metalli and Pro, the Federation of Finnish Technology Industries has prepared a joint technology industries career span scheme publication providing examples of practical measures for prolonging working careers. These measures may concern such aspects as management, career planning, expertise and skills, modification of duties, and various working time scheduling arrangements. The career span scheme publication is available in Finnish from the website of the Federation of Finnish Technology Industries at > työmarkkinat >työsuhdeasiain neuvonta ja ohjeet. Prolonging working careers - performance appraisal The employer and senior salaried employees attaining the age of 58 years will discuss available measures for helping an older senior salaried employee to cope at work. 2 Laki lähetetyistä työntekijöistä, no of 1999

7 7 Working time regulations The collective agreement definition of regular working hours has been specified and a protocol on the working time bank has been included as an annex to the agreement. It was also previously possible to create a working time bank suited to the needs of the enterprise and of senior salaried employees by local agreement. The new annexed protocol provides clear guidelines concerning the points to consider when agreeing on a working time bank. Elected representative Section 11 of the collective agreement, specifying the election, status, rights and duties of an elected representative, has been completely redrafted. The section has been clarified, with more precise regulations governing the election of the representative and the statistical information to be provided to the representative. Individual senior salaried employees have now been given the right to prohibit the provision of details of their pay scales or job requirement category to the elected representative if such a system is used or if the elected representative should otherwise be furnished with the said details. Telecommuting Telecommuting guidelines have been appended to, but are not part of the collective agreement. Development projects concerning the collective agreement for senior salaried employees The Federations have agreed on several projects to improve regulations governing terms and conditions of employment and the world of work more generally. The aims of these projects also serve important employer interests. Some of the more important of these include the effectiveness of staff representation, promoting local bargaining with respect to travelling time, and improving the processing of disputes. Besides the foregoing development projects, the Federations will continue work to promote job satisfaction and gender equality. For further details Further information concerning the various collective agreements may be obtained from the Technology Industries labour market service desk, tel Orders for the printed collective agreement The collective agreements will be available for downloading as pdf documents from the Technology Industries website at > Labour Market > Collective Agreements. Kind regards, Risto Alanko Executive Vice President Federation of Finnish Technology Industries TT

8 8 ANNEX Job requirement category salaries of salaried employees The job requirement category salaries applied as of 1 November 2012 under point 2.2 of section 4 of the collective agreement in force for the period from 24 October 2011 to 31 October 2013 shall continue to apply until the end of the salary payment period ending on 28 February 2014 or soonest thereafter. Job requirement category salaries as of the start of the salary payment period beginning on 1 March 2014 or soonest thereafter (EUR/Month): Job requirement points Job requirement category Weekly working time 37.5 hours monthly salary EUR Weekly working time 40 hours monthly salary EUR Job requirement category salaries as of the start of the salary payment period beginning on 1 March 2015 or soonest thereafter (EUR/Month): Job requirement points Job requirement category Weekly working time 37.5 hours monthly salary EUR Weekly working time 40 hours monthly salary EUR Working hours differing from those shown are to be taken into consideration in the job requirement category.