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30.01.2025 19:36

PAM breaks off negotiations on the commerce sector collective agreement: Concrete steps and open discussion needed

Service Union United PAM has today broken off negotiations on collective agreements in the commerce sector. PAM President Annika Rönni-Sällinen highlights the seriousness of the situation and hopes that the Finnish Commerce Federation will demonstrate a genuine willingness to negotiate.

nainen seisoo ulkona takki päällä kädet puuskassa.

– Reaching a collective agreement requires concrete steps and open discussion about options – this has not been the case in the negotiations so far, states PAM President Annika Rönni-Sällinen.

PAM’s wage increase demand has been known to the employers’ association since last year.

– Our well-justified goal of a 10% and least €250 pay rise over two years has been met with a proposal from the Finnish Commerce Federation that is completely unacceptable and does nothing to close the purchasing power gap, Rönni-Sällinen says.

PAM also has other key issues in the negotiations. It is crucial that, in an already unstable situation, employee dismissal protection remains at its current level. Uncertainty should not be increased.

– Similarly, it is clear that we must review how additional hours for part-time workers are compensated, as the current method has been ruled discriminatory by the EU Court of Justice. The employers’ side does not even acknowledge the need for change, Rönni-Sällinen points out.

Service Union United PAM has been negotiating intensively with the Finnish Commerce Federation since the beginning of January on new collective agreements in the commerce sector. The sector employs over 280,000 workers, of whom 160,000 are directly covered by PAM’s agreements.

Rönni-Sällinen describes the negotiations as sluggish, as employer federations are merely waiting for solutions from the technology industry.

– We are negotiating the working conditions of service sector employees, but finding solutions seems impossible. The coordination by Confederation of Finnish Industries (EK) strongly influences the situation, Rönni-Sällinen assesses.

End of industrial peace obligation – upcoming industrial action?

PAM’s Executive Board will meet on Friday, January 31, to assess the situation and consider continuing negotiations or taking other measures. The current collective agreements and industrial peace in the commerce sector remain in effect until January 31.

Once the agreement period ends, the obligation for industrial peace also ceases. This means that employees will have the right to take industrial action, such as strikes, to pressure employers toward a resolution.

– We must now seriously consider our next steps, as employer coordination is strong. The trade union movement has been preparing for this situation. Service sector workers must be lifted out of the purchasing power pit caused by rising prices, cuts to social security, and tax increases, Rönni-Sällinen states.

During the last round of collective bargaining two years ago, the commerce sector saw widespread strikes involving hundreds of workplaces and tens of thousands of employees. In the end, a settlement was reached that included a €165 monthly pay rise and a one-time payment of €400.

Additionally, the collective agreement between PAM and the Finnish Hospitality Association MaRa for ski resort employees also expires on January 31. The negotiation parties will meet again on Friday morning.

Keywords:

collective bargaining commerce sector

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