Service sectors must close pay gaps
Kimmo Nikula explains that PAM is now setting objectives for a sectoral round. The most intense period for negotiations will come early next year. Photo: Susanna Kekkonen
PAM is getting ready to negotiate collective agreements with its counterpart employer organisations. In the opinion of Kimmo Nikula, the Union’s Collective Bargaining Manager, pay gaps need to be closed during this bargaining round.
What is the pay level among PAM members like now – in other words, what is the baseline situation from which we start the forthcoming sectoral round of negotiations?
‘Pay development in private services sectors has not been as favourable as the average for all sectors. Of course, pay gaps have existed for decades, but we just haven’t been able to close them.’
The contention is supported by statistics. According to Statistics Finland, the average hourly pay calculated from the total earnings of an industrial process operator was over 18 euros per hour last year. In the services sectors, the hourly earnings of sales assistants, cooks and waiters, for example, amounted to about 13 to 14 euros.
‘The fragmented nature of employment in the services sector weakens total earnings. There are zero-hours contracts, part-time employment and temporary agency work.
‘Our challenge is that services are labour-intensive, which means that the productivity of work is also not at the same level as in industry.’
What is the Union seeking to get out of the negotiations?
‘Our negotiating objectives are currently being refined, and the Executive Committee will discuss them at its remaining meetings this year. Now that we are entering a sectoral round, different sectors are preparing their objectives based on their own needs. As a result, the objectives as a whole may be slightly different in different sectors.
‘By way of example, the hotel and restaurant sector is suffering from labour shortages. The proportion of part-time workers in the sector is hovering at almost 40% while the sector has fallen behind in terms of pay levels. Something should be done to find enough employees.’
Employers will hardly promise service sectors anything over and above export sectors.What means does PAM have to increase pay levels?
‘For instance, reforming pay systems such that pay would be based on the complexity of work and competence, rather than job titles. This is actually being negotiated in the commercial sector and in the hotel, restaurant and leisure industry. Another means is an earnings development programme, which has already been implemented in the facilities services sector.
‘I also consider it important for a shop steward to be able to negotiate at a local level on issues such as performance bonuses, which could be paid out based on each company’s productivity.’
What is your employment history with PAM like?
‘I started as Collective Bargaining Manager at the main office in February. I’ve been working for the Union for a total of about 14 years, previously as a union official and regional manager. Originally, I am a commercial sector employee and shop steward.’
