Collective agreement, also known by its Finnish acronym TES, is a labour market partner agreement on industry-specific working conditions such as pay rises, working hours, leaves, holiday bonuses, employee representation, communication and other applicable conditions in the scope of the agreement. Collective agreements are typically industry-specific and tied to the professional position of the salaried employee.
Many key working conditions are agreed upon in collective agreements. Contrary to common belief, these conditions are not necessarily based on law.
As an example, the following working conditions are based on collective agreements:
In the private sector, employers are most often represented by one of the member associations of EK, the Confederation of Finnish Industries, and employees by Akava’s private sector negotiating body YTN, the Federation of Professional and Managerial Staff. YTN negotiates private sector collective agreements for business school graduates.
In the public sector, specific public sector collective agreements apply. The contracting parties are JUKO, the Federation of Professional and Managerial Staff in the Public Sector, and the Local Authority Employers (KT), the Office for the Government as Employer (VTML) and the Labour Market Organisation of the Church (KIT). JUKO negotiates public sector collective agreements for business school graduates.
As a rule, collective agreements negotiated by YTN, the Federation of Professional and Managerial Staff, apply to the members of The Finnish Business School Graduates. Typical industries employing a large number of business school graduates and applying YTN-negotiated collective agreements include:
A large number of business school graduates also work in industries with no YTN-negotiated collective agreement in force for the present. These industries include:
