PAM withdraws strike in business sector as contract deal agreed

Service Union United (Palvelualojen ammattiliitto-PAM) on Wednesday has withdrawn its pre-announced strike in the commerce sector scheduled for March 20 and 21 following a collective agreement, said PAM in a press release.

PAM approved the negotiation result on the commerce sector collective agreement, which was reached on Tuesday with the Finnish Commerce Federation.

As per the agreement, wages will increase by 7.8 percent during the agreement period.

“Unfortunately, we were not able to include a provision to maintain dismissal protection at the current level in the agreement. Our focus is now on influencing legislation and securing the position of our members,” said PAM’s president Annika Rönni-Sällinen.

The agreement is for three years, from 1 February 2025 to 31 January 2028. However, it can be terminated earlier, ending on 31 January 2027.

Wages in the sector will increase by 2.9 percent on 1 May 2025. The second wage increase of 2.5 percent will take place on 1 August 2026, and the third increase of 2.4 percent on 1 May 2027. In addition, a new remuneration system will be introduced in October 2026.

Members of PAM’s decision-making bodies held extensive discussions on approving the agreement and it was approved after a vote, with 14 in favour and 2 against.

Of particular concern was the weakening of dismissal protection, which the four-party alliance government led by Prime Minister Petteri Orpo is preparing.

Most collective agreements in the private service sectors do not include provisions on the grounds for dismissal related to the employee’s person. As a result, they are determined by the prevailing legislation. The Orpo government’s proposal to make dismissals easier is progressing.

“Throughout the negotiations, which began last December, we proposed to the Finnish Commerce Federation that we secure dismissal protection at the current level in the collective agreement. It became clear that the Finnish Commerce Federation would not agree to this under any circumstances. Our focus is now even more strongly on influencing legislation and safeguarding workers’ rights,” said Rönni-Sällinen.

PAM and the Finnish Commerce Federation agreed in the collective agreement on procedures to be followed in workplaces when an employer is considering dismissal.

The agreement includes a provision ensuring that an employee has the right to be assisted in a dismissal hearing by a union representative, a trade union official, or a representative of the local trade union branch. The hearing must be arranged in a way that allows the employee a genuine opportunity to participate and prepare.

“PAM will carefully review dismissal cases, take unclear cases to court if necessary, and communicate about their progress. We will also ensure that all members receive support in dismissal situations if they wish,” Rönni-Sällinen said.

The parties will also monitor how the Finnish Commerce Federation’s member companies apply the new legislation that weakens dismissal protection.

A joint working group was established to improve the position of part-time workers.

“We will also continue working on the EU Court of Justice’s ruling regarding compensation for additional working hours for part-time employees,” Rönni-Sällinen added.

Earlier on Monday, PAM issued a new strike warning for the commerce sector demanding a collective agreement including dismissal protection.