The Board of the Finnish Forest Industries Federation (FFIF) has decided on a working life reform, which is part of the industry’s updated strategy. FFIF will discontinue collective bargaining in the Finnish labour market. The decision will in future shift the responsibility of bargaining to member companies.

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FFIF ends collective deals in Finnish labour market

The Board of the Finnish Forest Industries Federation (FFIF) has decided on a working life reform, which is part of the industry’s updated strategy. FFIF will discontinue collective bargaining in the Finnish labour market. The decision will in future shift the responsibility of bargaining to member companies.

“We are building a new culture of dialogue, because we want Finland and the Finnish forest industry to succeed in the future as well. The different needs of companies in different situations can be better met when employment terms and conditions are decided upon at the company and product group level,” says Mr. Ilkka Hämälä, Chairman of the Board of FFIF, President and CEO of Metsä Group.

In the future, companies can agree with their staff on salaries, shifts and any working conditions that are not otherwise restricted by law. Companies design and build new ways of agreeing from their own standpoint and respect the right of their employees to organize from their own point of view. Freedom of association or trade union activity will not be affected by the reform.

The reform is based on FFIF’s long-term goal of the structural development of collective agreements. This goal has not been met over the recent federal negotiation rounds or during the previous centralized negotiation system. A nationwide, inter-organizational contract system responds poorly to the needs of companies in different market and economic situations, in diverse business areas and individual factories.

The transition period for the reform is long, as the industry’s current collective agreements are valid for 15-27 months, depending on the sector. FFIF is responsible as a contracting party to the current collective agreements until their termination.

The working life reform is part of FFIF’s growth-oriented Responsible Solutions and Welfare -strategy. In the world of climate change, the growth opportunities of the forest industry are significant – the climate benefits offered by Finnish companies’ wood-based products are considerable.

Products from the forest industry can increasingly replace products that are harmful to the climate, which is also crucial in achieving Finland’s 2035 carbon neutrality goal. For its part, the forest industry is committed to implementing its climate roadmap and making its production in Finland practically emission-free by 2035. Implementing the climate roadmap requires decisions that strengthen competitiveness and enhance the growth of Finnish forests.

The forest industry has more than 150 factories in Finland, which employ approximately 140,000 people in an extensive domestic value chain.