Competitiveness Pact brings changes to hotel, restaurant and leisure services: Goodbye, old days off!

We are not going to miss you, JP days off! This was the most obvious reaction to discontinuation of ‘JP days off’ – where ‘JP’ stands for public and Church holidays – when PAM Magazine asked people working in hotel, restaurant and leisure services about their opinions on the changes brought about by the Competitiveness Pact.

PAM and the Finnish Hospitality Association MaRa organised training on the Competitiveness Pact all over Finland in October and November. PAM Magazine visited a training session in Tampere. This training really hit the spot, as the participants we interviewed reported that people at their workplaces did not yet know much about the effects of the Competitiveness Pact on the sector’s collective agreement. Nevertheless, the amendments governing working hours and JP days off will already enter into force on 1 January 2017, while the remaining amendments will become effective as from 1 February 2017.

The system of JP days off will be replaced by a new annual leave system. This raised plenty of questions during training sessions. In the future, employees will earn one annual leave day for every 220 hours that they work. Full-time and part-time employees will be on an equal footing, while working during a week with a public or Church holiday will no longer be of any relevance.

In addition, working hours will increase, while monthly pay will remain unchanged. Working hours averaged over a period of three weeks will increase from the current 111 hours to 112.5 hours. The definition of a part-time employee will change accordingly to refer to an employee whose working hours amount to less than an average of 112.5 hours over a period of three weeks.

Perhaps the most important of the other changes is the fact that a higher proportion of social security payments will be taken from employees’ pay cheques. In other words, employers will cover a smaller share of pension and social security payments than before. However, the government has promised to sweeten the deal by easing taxation on earned income next year. As a result, this reform should not affect the final tally.

As part of the changes included in the Competitiveness Pact, you no longer need to produce a certificate from a medical doctor or a public health nurse for sickness absences lasting up to three days, if agreed locally.

Furthermore, people made redundant by a company with over 30 employees will be entitled to receive employment-promotion training and to use occupational health care services for a period of six months after their duty to work has ended.

PAM Magazine asked:
1) What is your opinion of the Competitiveness Pact?
2) How have people at your workplace reacted to the Competitiveness Pact?

Minna Heikkilä, 26, shift supervisor, Naughty Brgr
1) I’m not yet sure what I think. I was curious and came in here to hear what sorts of things the Pact will affect in the future.
2) People at my workplace don’t yet know much about the Pact either. The idea is that, as a supervisor, I can pass information on.

Carita Talja, 42, cook (shop steward), Huittisten Härkäpakari
1) Some items are changes for the better, such as replacement of JP days off with annual leave days. The Pact includes some sensible decisions too. I’m not completely against it.
2) People at my workplace don’t know much about the Pact as yet. We’ll be that much wiser after the training.

Seija Ohralahti, 53, cook (shop steward), Restel Liikenneasemat
1) I’m feeling dubious. I don’t yet know what the Pact contains in concrete terms.
2) Changes are on the way and you can’t do anything about them. Everyone is still waiting for further information.

Tiina Seppälä, 42, shift supervisor, TTT-Teatteripalvelut
1) I’m baffled. We are returning back to where we started years ago, now that JP days off will be taken away again.
2) People don’t know how to react yet, because everyone is still waiting for specific details.

Kirsi Rinne, 36, restaurant manager, Linkosuon Kahvila
1) I’m only just digesting it. My mood is neutral.
2) We have talked about the changes and at least no-one is in a very negative mood.

Jorma Pajunen, 51, chief shop steward, Cooperative Society Pirkanmaa
1) It is good that the annual leave system will clarify the system of days off. No more tricks. It’s clear to calculate that each 220 hours will earn you one annual leave day.
2) The reaction has been confused. There has not been enough information as yet.