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Different kinds of collective agreements

Collective agreements can be universally binding, normally applicable or company-specific. The minimum terms of a universally binding collective agreement must be applied to all employees in all workplaces in the sector in question. Universally binding agreements apply to the majority of PAM’s members. 

Because of their universally binding nature, collective agreements cover around 90% of Finnish workers. A universally binding collective agreement means that the same minimum terms of employment must be applied to all employees.

Most of the collective agreements negotiated by PAM are universally binding, such as the collective agreements for the commercial sector, the hotel, restaurant and leisure industry, the property services sector and the security sector. In addition to universally binding collective agreements, PAM negotiates several normally applicable and company-specific collective agreements.

For service sectors, we have negotiated 

16

generally binding collective agreements 

3

normally applicable collective agreements

14

company-specific collective agreements

Universally binding collective agreements serve employees’ best interests


When a collective agreement is universally binding, all employers in the sector in question must comply with it.  All workers in the sector have the same minimum terms of employment such as wage classes. These minimum terms must always be met, and they can also be exceeded. 

In Finland, workers’ security is strongly based on universally binding collective agreements, for which PAM and other trade unions work every day. If the universally binding nature of collective agreements is abolished, terms of employment will need to be renegotiated for a large proportion of workers. 

How many people can negotiate an employment contract for themselves that includes all the aspects that PAM and other trade unions have successfully included in collective agreements through collective bargaining?

The universally binding nature of collective agreements is important in many ways:

Last updated: 30.01.2025

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