President on new collective agreement: "There is something for the present and for the future"
The new collective agreement provides a good foundation for the working life of financial sector employees in the coming years. This is the opinion of the president of Finansforbundet, who urges members to vote yes to the agreement at the ballot.
Secures real earnings
In a changing world where it is difficult to tell what new geopolitical tensions tomorrow will bring, Dorrit Brandt describes the agreement as "sound and reasonable".
So is the level of salary increases, she explains.
"Our ambitions are always that any salary increase should at least cover inflation, so that our salaries are inflation-proof, and of course we also want a little extra on top. That's what we've achieved with this agreement, and although one may always wish for more, we've reached a reasonable level," says Dorrit Brandt.
Therefore, inflation expectations have played a role in the negotiations. Forecasts from the Ministry of Economic Affairs, the Economic Councils, Danmarks Nationalbank and the sector's banks, among others, have helped to provide an overview of the economic development and have contributed to setting a framework for the agreement.
In connection with the most recent collective bargaining, 2022 inflation stood at 7.7 per cent, which led to a higher bargaining outcome. By 2024, inflation had dropped significantly to 1.4 per cent, and forecasts indicate that it will remain at this level or slightly higher during 2025-2027.
"Against this background, an agreement has now been reached where salaries and wages in companies without salary pools will increase by 7.4 per cent over the next three years. The general pay increases are negotiated with the aim of securing real earnings, and with the current inflation estimates, it is assessed that this goal has been met," says Klaus Mosekjær Madsen, Senior Economist at Finansforbundet.
Pool requirements cost extra for employers
In addition to the general pay increases, local salary pools also provide a possibility of higher pay. The pools were a requirement from the employers, and Dorrit Brandt is happy with the model that has now been adopted.
The model implies that employers will have to pay more if they want to make use of salary pools.
Specifically, 0.60 per cent of the general pay increases may be implemented as local salary pools if companies add another 0.40 per cent each year. This increases the total level over the three-year period to 8.6 per cent for companies that choose to make use of salary pools.
"This allows for even better pay adjustments, and therefore a strong result overall," explains Dorrit Brandt.
She also emphasises that she has a clear expectation of the pooled funds being distributed widely.
"This is something we will follow up on," she says.
Negotiations look ahead
It may seem strange to some that banks are not ready to add more to their pay packets when many of them are also presenting sound financial statements these days.
Klaus Mosekjær Madsen, Senior Economist, points out that whereas the financial statements reflect the year that has passed, the collective agreement negotiations look ahead.
"In other words, two years ago, we negotiated the salaries for the financial years that just ended. We have now negotiated for the coming years," he explains.
Red lines
Was there anything that Finansforbundet would have liked to have achieved from the negotiations but did not succeed in getting? Dorrit Brandt confirms that there was.
"We would have loved to have gotten more for our contract employee members, which we fought for until the very, very, very last hour. But employers weren't willing to talk about it, and it was a red line for them."
"And with respect to the framework, the negotiations were extremely tough. We fought to achieve a reasonable result against an employer side that has a very different view of the coming years than the two that have just passed. I think we've succeeded with that to a reasonable degree," she explains.
However, research made by Finansforbundet into the employment conditions for contract employees shows that these employees have many of the conditions that, thanks to the negotiations, are part of the collective agreement.
Who Does the Collective Agreement Apply To?
The collective agreement applies to employees in companies that are members of Finans Danmark / Arbejdsgiver and are therefore covered by the standard collective agreement (STOK).
In several financial companies, local company agreements (VOK) will also be negotiated in the coming months. These company agreements are based on the main agreement but are adjusted to local conditions.
If you work in a company with a VOK, you are entitled to vote in the referendum on both STOK and VOK.
Use your vote
Overall, Dorrit Brandt believes that the agreement meets the demands from the support base ahead of the negotiations with the employers.
"It's an agreement in line with the mandate given to us for the negotiations and the demands we received," says Dorrit Brandt.
Now it's up to the approximately 33,600 voting members to vote on the agreement. The ballot opens on Monday, 10 March, and Dorrit Brandt encourages all members to use their vote. She hopes for support for the result and encourages members to talk to their union representative about the collective agreement if in doubt.
"Overall, we’ve reached a solid and fair agreement for the coming years, which I and Finansforbundet’s Assembly of Representatives recommend you vote in favour of," she says.