Protecting jobs is now the priority – big compromises on both sides in local agreements

“A common external threat,” says Jyrki Sinkkonen, PAM negotiator, describing the coronavirus pandemic.  This is what is motivating service industry employers and employees to increase cooperation.

“Both sides are reaching radical solutions,” says Sinkkonen.

With companies and jobs in danger, many workplaces are turning to local agreements to survive the situation, which is a crisis even more severe than the depression of the 1990s.

“Companies are turning to creative and courageous solutions to survive the crisis with minimal damage.”
 

Annual leave and waiting days

Jyrki Sinkkonen is a supporter of local agreements, specifically when employees are represented by a shop steward. He has been talking to shop stewards and company managers to hear about the agreements reached in service industry companies because of the pandemic.

According to Jyrki Sinkkonen, a common external threat is now uniting employers and employees.

“Companies have made their own agreements regarding payment of salaries during quarantine or other absences, as well as the right to absence due to illness or to take care of a sick child without a doctor’s certificate.  Correspondingly, compromises have been made regarding the scheduling or annual leave, holidays and other days off. Other topics that have come up include converting holiday bonuses to paid leave and working in duties outside the job description.”

“Unfortunately, the significance of cooperation has not been recognised in all companies, and some of them continue to exploit their employees as they did before the pandemic.”

Local agreements have gone beyond the scope specified for them in collective agreements.

“They don’t tell us in the union about all the new creative solutions they’re making. And why would they, if both sides are happy?”

Working together to get through this

Eventually, the corona crisis will be over.  Sinkkonen hopes that the current spirit of cooperation will continue in service industry companies and among labour market partners, so that the industry can finally move beyond the current adversarial positions. 

“We are already seeing good cooperation with the Finnish Commerce Federation and the Finnish Hospitality Association.”

PAM has agreed to temporary exceptions to collective agreements in March due to the coronavirus. For example, the required warning period for layoffs has been cut from 14 days to 7, or even to 3 if agreed locally and the situation at the workplace is particularly dire. This means that the employee being laid off will lose salaries. According to Sinkkonen, this is compensated for by the proposed abolishment of the five waiting days during which unemployment benefits will not be paid.

The central organisations of employers and employees have proposed many temporary changes in March, and the results of the legislative process are expected to arrive soon.

Sinkkonen believes that the priority is to protect jobs. The situation is historic.
“The main thing is that we survive and work together to get through this.”