PAM’s Executive Committee approves collective agreements for the retail sector

The Executive Committee of Service Union United PAM approved the new collective agreements for employees, clerical employees and supervisors in the retail sector. The new collective agreement is in force from 1 February 2018 to 31 January 2020 and it applies to around 250,000 employees and supervisors in the retail sector.

“Despite starting from an unusual position we managed to achieve a reasonable compromise that prevented the cuts proposed by employers to Sunday work compensation and, among others, an extension of the trial period to 6 months. We also fought off a worsening of the working time rules for clerical employees. We achieved important objectives for our members in qualitative aspects of the text and in improvements to employees’ wellbeing,” says PAM President Ann Selin.

The collective agreement settlement significantly improves the position of part-time workers. In future employers and employees must check every six months that the actual working hours and the hours in the employment agreement match. If they are different from what is written in the employment contract, the working hours total in the employment contract has to be updated.

“I consider this a victory. This represents an improvement in an area that has caused disagreement in workplaces and helps to protect all those working on part-time contracts. It makes it easier to predict your income and plan your life”, Selin emphasises.

The monthly salary for full time working employees and clerical employees will increase as follows:
- from 1 April 2018: 42 euros and hourly wages 0,26 euro.
- from 1 April 2019: 42 euros and hourly wages 0,26 euro.

Those working part-time with a salary proportionally equivalent to a monthly salary will receive a corresponding increase in pay according to their working hours. The pay scales within the retail sector (minimi pay) will increase during the same periods by 1.6%. Supervisors’ individual pay and pay scales will increase by 1.6% in each year of the agreement.

“The pay increases can be considered reasonable even though we didn’t achieve our objectives. I expect the overhaul of the pay system during the agreement period to bring much-needed improvement to pay in the sector”, comments Selin.

The collective agreement improves employees’ wellbeing at work. Liberalised shop opening hours have increased work at atypical times of day, and in Selin’s opinion recognition of this and having new rules in the collective agreement is an important step forward.

“In the past there were no ground rules for night work, now we have got them. They ensure that the aim is to minimise the health risks of night work and that night work must be agreed with the employee. This means better shift planning based on employees’ wishes”, Selin says.

A new feature of the agreement is that it defines what actions to take in cases of absence due to illness if an employee does not have easy access to health services, for example in the evening or at weekends.

Selin describes the collective agreement negotiations as having been difficult even though the atmosphere remained constructive throughout. In dealings between the social partners, she would like to see improvements to the agreement procedure and to the attractiveness of the sector.

“We were prepared to develop local agreements, but this negotiating round confirmed the impression that the employers’ aim is more to dictate the terms of agreements. In this respect, however, we accommodated the employers, for example in the procedure on bringing in a system for midweek public holidays.

For the employers there were also positive changes in the rules on language supplements”, Selin says and continues
“The constant attacks on working conditions and workers must stop. This negotiating round showed that the negotiating culture needs reforming. In future we cannot be in a union round where the employers are anyway trying to use the methods of a centralised pay settlement that they themselves have withdrawn from.”

The collective agreement in the retail sector includes also the collective agreement protocol for ADP clerical employees (following collective agreement protocol for retail sector’s ICT clerical employees), collective agreement protocol for sales personnel in Hakkija’s farming stores, collective agreement for supervisors in warehouses and transit as well as the collective agreement for supervisors in retail trade.

The content of the collective agreement will be updated in a nutshell here.