IT SECTOR TALKS DID NOT PROCEED – COLLECTIVE AGREEMENT EXPIRED ON WEDNESDAY

Collective bargaining talks in the IT sector continued on Monday. Progress was not made: parties to the talks still disagree strongly on both textual and financial questions. As the current collective agreement expired on 30th September, there is no agreement in force in the sector from Thursday onwards.

Progress has not been made in collective bargaining talks in the IT sector for months now, and the parties have not approached an agreement in any area whatsoever. The views expressed in the latest talks made it clear that it was not possible to reach a new agreement in time. The Federation of Finnish Technology Industries is not willing to even discuss a salary increment of 0.5%, which the employees’ side is not willing to accept due to the situation in the sector. Another bone of contention is that the Federation wants to weaken working time provisions, which means that regular full-time day jobs would be subject to an average working time provision.  

From Thursday 1st October onwards there will be no collective agreement in force in the IT sector. However, the provisions of the expired agreement will apply until a new one has entered into force. Talks will resume only on 21st October 2009.

Sector equipped for salary provisions which maintain purchasing power

YTN will follow collective bargaining talks in the IT sector and encourages employees to keep to their demands in the talks. The YTN representative for the sector, Mr Matti Koskinen says that IT services is better equipped for salary provisions that maintain purchasing power, even though the economic situation, generally speaking, is not so good in Finland: “Companies in the IT sector are not doing as badly as industries in general. Even though next year’s recession is used to intimidate employees, surely there are solutions to be found for increasing salaries where it can be afforded", Koskinen says.

YTN has made a collective agreement with the Federation of Technology Industries that covers 55,000 professional and managerial employees, e.g., in the electronics and electricity industries. However, YTN has not made a similar agreement for other industrial sectors. YTN says each sector has to find a solution that responds to its own situation. Mr Koskinen reminds us that it is the employers’ organisations that do not want to negotiate a general incomes policy settlement (Tupo).

YTN ready to negotiate

YTN has clearly indicated its willingness to negotiate, but it has not been shown a green light by its negotiation partners. Mr Koskinen says both parties have their own preconceptions about the situation, but hopes that they will see the great value of YTN’s participation relatively quickly. “The employees’ side Erto (Federation of Special Service and Clerical Employees) is afraid of losing its autonomy in the talks, but it cannot rely on our support either if YTN is not given the right to negotiate. As an external actor, YTN is not bound by industrial peace either”. YTN hopes now that employees will be willing to negotiate regardless of the divides created by central organisations.

 
Additional information:
YTN representative for the IT services sector, Mr Matti Koskinen, tel. 0400 498 846.


EXPIRY OF A COLLECTIVE AGREEMENT
When a collective agreement expires and a new agreement is not in place, a sector may enter a situation where there is no collective agreement in force. In this kind of a situation, the terms of the expired agreement will apply. For employment contracts this means that the provisions of the old contract will be taken as the terms of employment. Generally speaking, the provisions of the previous collective agreement are valid until a new collective agreement enters into force.

The residual effect of the previous agreement does not apply to new employment contracts signed during the period after expiry. Employees must make sure that a provision on following the terms of the previous collective agreement is included in the contract until a new collective agreement is in place.

After the expiry of a contract the employees are not bound by industrial peace, so talks may be supported with industrial action.