National and local agreement on terms and conditions of employment

A collective agreement arises when an employers’ federation or an individual employer and a trade union reach a settlement on the terms and conditions of employment of a group of employees. Agreements of this kind may also be made for official post holders in the public sector (national and local government, wellbeing services counties, and parishes). These agreements are generally made for a fixed period of 1-3 years.

Collective agreements bind the signatory organisations of employers and employees and their members. They require these organisations to supervise compliance with the agreed conditions by individual employers and employees.

The trade union, or the lead negotiating organisation in the national and local government sector and wellbeing services counties will give an undertaking on behalf of its members to ensure industrial peace in the sector. No strikes may be organised during the agreement period with a view to changing the agreement or any part of it. 

• The employers’ federation agrees on behalf of its member enterprises to ensure that they abide by the agreement. 
• The Office for the Government as Employer ensures that agreements are applied in national government agencies. 
• The Commission for Local Atuhority and Wellbeing Services County Employers (KT) supervises compliance with agreements in the local government sector and in wellbeing services counties.
• The Labour Market Organisation of the Church (KiT) discharges the same function in parishes.

The wage and other benefits stipulated in a collective agreement are enforceable minimum conditions. Workplaces are always free to agree terms and conditions of employment that are more favourable than those of the collective agreement, and to apply any exceptions that are permitted under the agreement.

Public sector collective agreements may govern the terms and conditions of service of employees in the public sector (central government and wellbeing services counties and parishes). These agreements are concluded for a fixed period.

Collective agreement for government

The collective agreement for government determines the terms and conditions of service of official post holders in national government service. This collective agreement covers such aspects as salaries, working time, holidays, industrial disputes and local collective bargaining. The salaries of senior officials in national government service are determined under a separate agreement.

Collective agreement for local government (KVTES)

The terms and conditions of employment in local government service are stipulated in the general public sector collective agreement for local government (KVTES), in six other collective agreements, and in the collective agreement of AVAINTA Employers (AVAINTES).

Collective agreement for the church sector (KirVESTES)

The terms and conditions of employment of church employees are determined in accordance with the general collective agreement for the church sector (KirVESTES). The church has three salary systems: a general church salary system, a system for hourly paid staff and a system for managerial staff. The wages of young seasonal employees, students and apprentices are determined under a special collective agreement.

There is some scope for collective bargaining on terms and conditions of employment at the workplace. The opportunities for local collective bargaining vary between industries.

Terms and conditions of employment falling below the minimum stipulations of statute or national collective agreement may only be agreed at a workplace to the extent permitted by the collective agreement for the sector.

Collective agreements also stipulate the parties who may negotiate on terms and conditions of employment at a workplace. Depending on the collective agreement, the employee representative may be a shop steward, a staff group, the entire staff or the individual employee.

Again depending on the sector concerned, the aspects open to local collective bargaining may include 

• some wage increases
• working time equilibration practices
• self-certification of absence due to illness
• the ground rules of participation in work-related training.