The collective agreement specifies the minimum terms and conditions of an employment relationship

Collective agreements form one of the most important membership benefits offered by trade unions. Collective agreements have improved many legal terms and conditions affecting employee status.

Employees do not need to participate in collective bargaining, as the negotiations are conducted by the trade union and the employer association.

Finnish legislation does not stipulate a minimum salary. Minimum salaries are specified in industry-specific collective agreements. Moreover, collective agreements are used to agree on, for example, the grounds for employment, salary raises and regulations concerning working hours, overtime work, midweek holidays and evening and weekend work.

The generally applicable terms and conditions of the collective agreement must be applied to all industry employees regardless of whether they are trade union members. The system works as long as the membership rate is sufficiently high.

The generally applicable nature of the collective agreement can be lost. The alternative is a normally binding collective agreement which binds the contracting parties only.

To find the collective agreement of your branch, click here.