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10.03.2025 15:44

Increased wages, better security and more flexibility in everyday life

The new collective agreement in the commerce sector was not easy to achieve, but it will provide wage increases in the beginning of the agreement period and improve the coordination of work and everyday life. What does PAM’s Collective Bargaining Director Sirpa Leppäkangas think of the new agreement?

Sirpa Leppäkangas, PAMin edunvalvontajohtaja

The new collective agreement in the commerce sector, which PAM negotiated, will bring significant improvements in the everyday life of its members. Wages will increase at the beginning of the agreement period, job security will be strengthened, and it will be easier to combine work and private life.

General wage increases at the beginning of the agreement period

The agreement provides a total of 7.8 percent wage increases for employees in the commerce sector. These will come into effect early in the agreement period: the largest increase of 2.9 percent will come into effect immediately at the beginning of May. The next wage increase of 2.5 percent will come into effect in August 2026 and the last one of 2.4 percent in May 2027.

The wage increases in commerce were largely determined by the solution negotiated by the employer side the Technology Industry and the Industrial Union. This means that wages in commerce will increase in line with the export sectors.

– The 7.8 percent wage increases will help employees close the purchasing power gap. Admittedly, the situation has already improved somewhat as inflation has slowed down, says Sirpa Leppäkangas, PAM’s Collective Bargaining Director.

The general increases are distributed equally and are not left to the discretion of the employer.

The increases are entirely general increases, which means that they apply to all employees equally without separate local wage pools. This is good for employees, as it ensures that the wage increases are distributed equally and not left to the discretion of the employer.

– What is significant in this agreement is that the highest wage increase comes into effect immediately in May and that we avoided locally agreed wage pools altogether. This ensures that all employees get their share of the settlement that improves the wage level and purchasing power, Leppäkangas emphasizes.

Protection against dismissal is strengthened – PAM supports employees

According to Finnish law, the employer may not terminate employment for a reason related to the employee’s person, unless the reason is proper and weighty. The government now wants to weaken this protection.

Until now, the collective agreement for commerce sector did not have anything on dismissal protection, but now there is a provision that the employee must be given the opportunity to be heard before the employment contract is terminated.

In practice, this is a reminder that PAM members can bring a union representative (luottamusmies) or trade union official to a meeting arranged before termination and that employees must be given a genuine opportunity to prepare themselves and justify their positions at the meeting.

If necessary, PAM can take unclear dismissals to court.

– To have the union’s support and enough time to get prepared for the hearing means that dismissals do not become a “routine matter”, even if the protection against dismissal is weakened in the law. We also ensure that our members receive support in the event of dismissal, and if necessary, we take unclear cases to court, Leppäkangas emphasizes.

– The statutory protection against dismissal is of course something that we at PAM actively want to defend. The government’s proposal is opposed by many. Fortunately, we are not alone in this issue, Leppäkangas adds.

Better opportunities to combine work and private life

The new collective agreement brings new rights for employees in the commerce sector meaning better opportunities to combine work and private life. These include:

  • The right to stay home to care for a child under 10 years of age by self-notification. An employee can stay home to care for a sick child without a doctor’s certificate.
  • The right to participate in fertility treatments without pay. Previously, employees have not had the opportunity to participate in treatments during working hours.
  • The right to exchange holiday bonus (lomaraha) for educational leave. Employees can continue to develop their skills without it affecting their income.

– These reforms give our members better opportunities to have control over their lives and make choices that are important to them. For example, when it comes to a sick child, the possibility of self-notification makes everyday life much easier, Leppäkangas summarizes.

Support from members was crucial

The new collective agreement was preceded by the largest strikes in PAM’s history.

– Without our members and their active support, we would not have reached this negotiation result. Industrial actions, especially strikes, were a crucial means to put pressure on the employer. I believe that they also had a certain influence on reaching an agreement in the industry sector, says Leppäkangas.

– Thank you to everyone who participated and defended better working conditions!

Text: Minttu Sallinen

Photo: Eeva Anundi

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