Agreement on compensation for holiday bonus cuts found in municipal sector

Photo: Vesa Moilanen/Lehtikuva


The Union of Health and Social Care Professionals in Finland (Tehy) has unanimously approved the agreement found in the collective bargaining negotiations in the municipal sector late on Thursday.

The main bone of contention in the bargaining negotiations – the question of how to compensate employees for the cuts in holiday bonuses introduced as part of the competitiveness pact – was settled by agreeing on a one-off compensation determined based on the profitability of employers.

The agreement means that the overtime and shift-trading ban in place in the municipal sector has been lifted.

Millariikka Rytkönen, the chairperson of Tehy, believes the overtime and shift-trading ban was effective. “The compensation for holiday bonuses was granted thanks to the overtime and shift-trading ban of Tehy and [the Finnish Union of Practical Nurses] Super,” she comments in a press release from Tehy.

The Trade Union for the Public and Welfare Sectors (JHL) reveals in its press release that a total of 135 million euros will be earmarked for the one-off compensation, which will be paid to employees in January, 2019. The trade unions were originally demanding that up to 300 million be paid to employees in compensation for the bonus cuts over the next two years.

Tehy calculates that the compensation will be an average of 260 euros. It highlights that the bonus cuts will also be offset with a temporary, workplace-specific child care leave that can be granted in the event of sudden illness of an under 12-year-old child.

The agreement also guarantees employees a general wage increase of 26 euros – or a minimum of 1.25 per cent – in May, 2018, and one of 1.0 per cent in April, 2019. A workplace-specific increase of 1.2 per cent, meanwhile, will be granted at the beginning of 2019.

The collective bargaining contract will enter into effect on 1 February, 2018, and expire on 31 March, 2020.

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