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Local agreement - 17.02.2021 klo 09.00

PAM’s Kokko: Nationwide collective agreements are felt to be an important source of security in service sectors

PAM members trust collective agreements and think that the negotiating set-up at the workplace is unequal. PAM’s collective agreement manager, Ismo Kokko, believes that the explanation for this lies in the reality of workplaces: fragmented employment relationships and low wages.

Members of Service Union United are sceptical about there being an equal negotiating set-up at the workplace if negotiations are conducted locally. Around 60 per cent think that employers are better placed than employees  to influence the end result of local agreements. Only 2 per cent believe that employees have the upper hand and 15 per cent believe that the situation is equal. These attitudes are revealed in PAM’s comprehensive survey of members.

In service sectors, the share of part-time employment is high. Of the PAM members who responded to the survey, 58 per cent do permanent full-time work and almost 40 per cent part-time work. Two thirds of part-time workers are working part-time against their will.

“I guess the fragmented nature of employment in service sectors is reflected in attitudes to local agreement. It’s hard for members to see there being an equal negotiating set-up in other areas if they and their co-workers are always at a disadvantage when it comes to getting working hours”, PAM’s collective agreement manager, Ismo Kokko,  reasons.

According to PAM’s member survey, shop stewards are more confident than regular members about the possibilities of local agreement. 87 per cent of shop stewards have nothing against local agreement if it can be ensured that neither party is able to dictate the final outcome. 67 per cent of regular members share this view.

PAM members believe very strongly in collective agreements. Almost 90 per cent believe that collective agreements are the best way to set the groundrules in the labour market.

“The pay rises in the collective agreement are more important for workers in service sectors than in many other sectors. In these sectors there is minimal variation in wages – they are paid according to pay scales and across-the-board increases. If the minimum terms and conditions of collective agreements were impaired, this would directly impair the security of service sector workers’ incomes. They simply cannot afford that”, Kokko says.

The average gross pay of PAM members who responded to the survey was €2052 a month. The gross pay of full-time workers was €2301, and for part-time workers it was €1682. Almost three quarters of respondents said they have financial worries.

Questions about local agreements are part of PAM’s survey of members compiled in November. 

You can find the full members’ survey here (in Finnish). It covers matters including PAM members’ employment types and pay, the workplace atmosphere, the effects of coronavirus, municipal elections, co-operation negotiations as well as job-searching and unemployment. A while ago PAM published its  survey of the views of working-age Finns on local agreements.

Take a look at the results of the survey more in detail below (in Finnish).

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