Collective bargaining and negotiation system

The Finnish labour market system is based on bargaining. The labour market is regulated by labour law, the national incomes policy agreement, and collective agreements.

Labour law

If a sector does not have a collective agreement, the terms of employment are dictated by labour law. It defines the minimum conditions for the terms of public-service and contractual employment relationships. Members of Talentia are also members of AKAVA, the Confederation of Unions for Academic Professionals in Finland, who influences labour law on behalf of Talentia's members.

Collective agreements

Collective agreements are negotiated by the employers' association and the employee association or a negotiating organisation representing it. Those working in a contractual employment relationship for the public sector (local authority, joint authority, government, or parish) or the private sector are bound by collective agreements. Public servants in central and local government are bound by the collective agreement for public servants. In Finland, collective agreements are usually industry-wide.

Collective agreements define the rights and obligations that bind the employer and the employee or public servant during the agreement period. They comprise general provisions on the employment relationship and define the minimum conditions the employer has to guarantee the employee or public servant. The agreements define the detailed terms of employment in the industry, such as wages, working hours, and annual holidays.

Collective agreements can be based on the incomes policy framework agreement signed by the confederations, and they are concluded for an average fixed term of two years. The collective agreement obliges the confederations to supervise and the employers and employees to respect the agreements. While the agreement is in force industrial action is, as a rule, prohibited.

Public sector (local authority, government, parish) collective agreements are negotiated for Talentia by AKAVA's negotiating body, the Public Sector Negotiating Commission JUKO. Talentia informs JUKO of its negotiating objectives that are important for its members through its representatives in the Consultative Committee and the Board.

The collective agreements of Talentia members working in the private sector are negotiated by Talentia with a representative of the employers' confederation. In addition, company-level agreements can be made in certain cases.