New collective agreement: “It’s a good, total package”
The new collective agreement contains several good elements according to Dorrit Brandt, President of Finansforbundet, who singles out three elements from last week’s agreement.
Higher salary
Over a three-year period, the salary amount will constitute 7.4 per cent for salary increases in companies that do not want salary pools. It is distributed by 2.4 per cent in the first year and 2.5 per cent in the following two years.
In companies that opt for salary pools, the wage framework increases to 8.6 percent. This is achieved by companies adding an extra 0.4 percent each year, while 0.6 percent of the framework is allocated as pool funds. This means that of the total framework, 5.6 percent is guaranteed as general salary increases, while the remaining amount is distributed through pools.
For company-specific agreements, the centrally agreed framework is 2.4 percent and 2x2.5 percent annually. However, there is an option to allocate up to 0.6 percent of the framework to a pool. It is not certain, though, that the full amount will be used for a pool. This depends on local negotiations. In these negotiations, the parties must agree on how much of the funds should be allocated to the pool and how much the company should contribute to gain access to it.
“The employers have for a long time wanted more control over the funding for salaries, whereas we have always wanted to ensure real earnings for all employees. Now we’ve modernised the system so that the companies’ room for manoeuvre comes with a price in the form of a larger pool from the employers if they choose that path. This has allowed us to achieve a reasonable level and a good model,” says Dorrit Brandt.
Increased flexibility
The agreement also provides increased flexibility to all financial sector employees.
“As the needs in different life situations are experienced differently by each employee, we’ve focused on reaching an agreement which contains the necessary possibilities for flexibility. "In a number of situations, you are provided with better possibilities for adapting to life changes," says Dorrit Brandt.
She emphasises the new free-choice bank, which constitutes an adjustment of the former time bank.
“The name change fulfils a long-standing wish to increase the recognition that any overtime saved, the sixth week of holiday, care days, etc. may be used by the individual to create more balance in life,” says Dorrit Brandt and continues:
“It has also been important to ensure that employees may take time off, at short notice, during their partner’s fertility treatment, for example, and that days of holiday may be taken on days of particular importance to the individual.”
Senior staff also benefit from the new collective agreement.
“Senior part-time employment is now subject to substantial flexibility allowing you to exchange the fixed weekly hours for extra time off for days or weeks,” says Dorrit Brandt.
DKK 11 million for skills enhancement
Moreover, the agreement includes more money for competence development in the financial sector. The financing of the so-called Financial Competence Fund, which is a joint pool for skills development of employees, is increased by 40 per cent. That is an increase of DKK 11 million.
“It’ll strengthen the opportunities for skills enhancement, which is key to employees and companies alike – and even more so in the future,” says Dorrit Brandt.
Overall, she is therefore extremely pleased with the agreement, which will be put to a ballot among the members on 10 March.
“You won’t get everything you want in a negotiation, but I think we’re adding some very strong elements to an already very strong collective agreement,” says the president of Finansforbundet.
Who is covered by the collective agreement?
The collective agreement applies to employees of organisations that are members of Finance Denmark/Employer and, thus, covered by the standard collective agreement (STOK).
In the coming months, a number of financial services enterprises will also be negotiating local enterprise-level agreements (VOK). The enterprise-level agreements will be based on the main result, but be adapted to local conditions.
If you work for a company subject to a VOK, you are entitled to vote in both STOK and VOK ballots.