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New agreements to maintain purchasing power of municipal
and state employees


JHL (17.02.2011 - Juhani Artto) Negotiators in the municipal and state sectors have reached a common understanding on new collective agreements. The aim is to give pay rises that will maintain the purchasing power of the employees. This was the main goal of The Trade Union for the Public and Welfare Sectors JHL and the other unions representing employees.

In the municipal sector the agreement covers some 430,000 employees, and in the state sector 88,000 employees.

In the municipal sector everybody will receive a 1.2 per cent pay rise on 1 May 2011. On the same day an average rise of 0.8 per cent will be shared according to the conclusions reached in the local negotiations. In addition, a bonus - EUR100 for many employee groups - will be paid in May. All in all, when counted together with certain sliding upwards of wages and salaries, the cost impact of the agreement is plus 2.4 per cent. This is in line with the projected rate of inflation. The agreement expires at the end of 2011.

In the state sector wages and salaries will be raised retroactively from 1 February 2011 by 1.3 per cent. On 1 May 2011 a locally negotiated component of, on average, 0.5 per cent and a 0.2 per cent equality component will be added to wages and salaries. The agreement essentially improves the rights of employees in situations where their tasks are changed so as to be less demanding. According to the agreement, their pay cannot, however, be reduced during the 24 months following the changes. The new state collective agreement expires on 29 February 2012.

The concerned parties have still to approve the negotiated agreements within their respective decisive bodies.