Collective agreement reached in three chemical sectors
Negotiations in the three main chemical industry sectors, the plastic products industry and chemical product industry, the basic chemical industry, and the oil, natural gas and petrochemical industry, began last autumn on 11 October 2024.Negotiations were initiated in an atmosphere where the national government was preparing several bills to degrade the position and security of employees. The negotiating objectives were roughly opposed; the employer’s union pursued the implementation of the government’s legislative proposals into collective agreements, while the Industrial Union’s proposals sought to increase security, promote fair compensation and take into account changes in the workplace and people’s daily lives.
The negotiations were difficult from the outset with respect to the wording, and ultimately only moderate changes were decided upon to prevent the implementation of legislation in the workplace to make it easier to dismiss personnel, among other things. The solution promoted the manageability of the change introduced by local agreement legislation by entering a provision on working groups for local agreements whereby the local agreement working group acts as a secondary party to agreements in the workplace, for example in situations where a Chief Shop Steward has not been elected. The addition of paid leave has been challenging for a long time, but a small improvement to the collective agreement was obtained when it was agreed that an employee’s 50th or 60th birthday would also be paid if it coincided with a day off, whereas it had previously only been paid when it was on a working day. All the changes are in this summary.
The three-year wage increase level is high on the 21st century scale, although the target level was not met. It was considered important that the company-specific component remained reasonably small, which ensures that the wage increase will benefit everyone as much as possible. The pay scales will rise according to the total increase, so those working on a pay scale wage will receive the full increase. Also, the long service supplements, shift supplements, and compensation for the occupational safety representative and shop steward will increase. In addition, the time supplement (oil, natural gas and petrochemical agreement) will be realised in accordance with the pay rise. It should also be noted that company-specific supplements will rise according to the percentage increase.
A new model was introduced for these industries whereby local negotiations in the company will first take place to seek a local wage settlement. When negotiating the solution, the company’s situation can be taken into account in an effort to reach a common view of what kind of salary solution would support the salary structure of the workplace, well-being at work and encouragement. Matters to be agreed in a local wage settlement include the implementation method, time and amount of the wage adjustments. The agreement will be made with the Chief Shop Steward by 14 April 2025 (13 March 2026 and 12 March 2027), unless an agreement is made on extending the processing period.
If a local wage settlement is not reached, the wage will be increased as follows:
- 1 May 2025: general increase 2.1% and company-specific component 0.4%
- 1 April 2026: general increase 2.3% and company-specific component 0.6%
- 1 April 2027: general increase 2.0% and company-specific component 0.4%
For the third year, there is the possibility of unilateral termination, if, in light of the agreed solution, either party finds the solution inappropriate based on the industry’s outlook, employment and an overall assessment of cost competitiveness.
The agreement achieved industrial peace and a reasonable solution that was considered best for employees in this situation.