The framework agreement will improve employees’ security
amidst changes in
A summary of the framework agreement
The framework agreement, signed by the labour market confederations,
includes a framework for pay rises and measures aimed at improving the
quality of working life. The goal of the agreement is to increase the
power of salaried and wage earners, to enhance employment while at the same
time adding an element of
predictability, and thus stability, to the economy.
During the first 13 months wages and salaries are to be raised by 2.4 per
during the following 12 months by 1.9 per cent. In addition, employees are
paid a lump-sum of EUR 150. The pay rises consist of the wage and salary
increases and the cost impact of the other changes in working conditions.
The agreement will serve to improve the quality of working life. Employee
security in respect of enterprise downsizing is to be strengthened,
well-being at work will be
improved and training opportunities will be expanded.
The agreement and the concomitant measures the State has promised take to
underpin it are predicated on the labour market organisations winning broad
approval for the agreement within various sectors. The sector-based negotiations, which apply the framework agreement, need to be
The board of the union confederation STTK approved the framework agreement unanimously on October 13.
The qualitative improvements central to the STTK are as follows:
To harmonize working and family lives family leaves are to be developed so
as to increase families' freedom of choice. Paternity leave will be extended
to 54 days and families' right to schedule their paternity leaves will be
improved. This reform is to take effect on 1 January 2013.
Alternation leave compensation
The government is committed to withdrawing its earlier plan to cut the
leave compensation. Thus, compensation would remain at between 70 and 80 per
cent of the unemployment benefit. In addition, compensation is set to rise
from 1 January 2012 following (and in line with) the increase in basic
Unemployment security would be improved in many ways. The agreement would
make it easier for those temporarily laid-off and employees working in
employment relations to receive unemployment benefits. The reform would take
effect from 1 January 2012. Periodisation of holiday compensation would be
scrapped from 1 January 2013. This would speed up the unemployment benefit
payments in the early days of unemployment.
Development of the Act on Co-operation within Undertakings
The Act on Co-operation within Undertakings would be amended - on a
basis - developing the regulations on personnel plans. The aim would be to
promote employees' flexible working hours, allowing them to be adapted to
changing life situations and give employees the right to influence the use
temporary labour at their work places. The amendments would also support
participation in working life of people whose work ability is restricted and
add employees' entitlement to training during their work careers.
The impact of collective agreements on the pay gap between women and men
would be evaluated and the parties would cooperate in implementing common
conclusions. In addition, a tripartite study on pay reviews would be made.
Agency labour and fixed-time employment contracts
The aim is to intervene drawbacks in various ways of using labour force.
Problems in agency labour contracts would be studied on a tripartite basis.
to the causes of temporary employment relations, the goal is to homogenize
them in various forms of work. A study would be made also on the irregular
working hours in so called 0-employment contracts (these do not guarantee
employee any minimum amount of working hours).
Increasing employees' entitlement to training during their work careers
would improve their security amidst changes in working life. According
to the framework solution employees would be entitled to three days of
training annually to improve their skills at work. Employees over 55 years
of age could use these days to promote their work ability. The preparation
would include studies on training entitlements, the activity of the
Education Fund, the use of adult education support, and tax incentives
Improving the occupational safety legislation
The occupational safety legislation would be amended - on the basis of
tripartite preparation - to enable intervention when the workload becomes
critical or too demanding for an individual employee.
Extension of work careers
Work careers would be extended by creating an age programme model for work
places, by promoting, with a broad programme, utilisation of a partly able
labour force in the labour market and by analysing the obstacles to the use
of working hour banks.