Wage annex 1 June 2023 – 31 January 2025

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1. SENIORITY LEVELS

The following seniority levels shall apply in the collective agreement for the commerce sector:

2. Remuneration system for logistics and clerical positions (from 1 January 2024)

As part of the collective bargaining process, the Finnish Commerce Federation and Service Union United PAM have reformed the remuneration rules in the Collective Agreement for Logistics and Clerical Workers. The reform will introduce new job requirement levels that better acknowledge the complexity factors of jobs in the sector. The minimum wage payable for these positions shall also be determined based on the job requirement levels. In addition, the central labour market organisations have updated the general remuneration rules and the remuneration rules for specific occupational groups in the collective agreement, as required by the reform.

This annex describes the key elements of the reformed remuneration system. The central labour market organisations will jointly publish more detailed implementation guidelines on introducing the new system by 15 May 2023.

Determination of remuneration and procedure

The job-specific pay for an employee in a logistics or clerical position shall be determined based on the minimum wage according to the job requirement level and the other general remuneration rules or remuneration rules for specific occupational groups in the collective agreement.

The key factors in determining the job require grade include, among others, the competence required for the position, discretion, independence of work, and nature of interaction.

The job belongs to the job requirement level that best corresponds to the complexity of the work overall. The job requirement level is determined based on the work, not the worker.

A job description should be prepared for every work function in the workplace, stating the information necessary to determine the job requirement level. The complexity of the work should be assessed with the help of a written job description form or a corresponding description. The job descriptions should be checked regularly to ensure they remain up to date and revised if the work changes substantially. The employer shall review the job description with the shop steward. If no shop steward has been elected, the job descriptions may be discussed with one or more other employee representatives.

The job description and criteria for determining the pay shall be reviewed by the employer and employee. The employer shall approve the final job description. Any questions concerning the position or the associated job description shall be discussed by the employee and supervisor without delay.

Remuneration based on the job requirement shall be reassessed if the complexity of the employee’s work changes permanently. The new rate of remuneration shall be paid as of the start of the payroll period following the change.

Minimum wages

The minimum wages for the job requirement levels are the pay scales in the wage annex.

The remuneration for positions more demanding than specialist occupational positions is determined by agreement. However, the remuneration must be higher than the minimum wage for the specialist occupational position and proportionate to the complexity of the work.

Job requirement levels

The job requirement levels for logistics positions are determined according to section 3.

The job requirement levels for clerical positions are determined according to section 4. The job requirement level replaces section 3 of the wage annex in the previous collective agreement. Job requirement levels for clerical duties The job requirement levels can be applied before 1 January 2024.

The job requirement levels for clerical positions (section 4) may also apply to employees who do not have a pay scale in the collective agreement. The job requirement level replaces section 2 of the wage annex in the previous collective agreement. General description of job requirement levels

Dispute resolution mechanisms

Disputes shall be resolved in accordance with the negotiation procedure, with the following clarifications:

In the event of a dispute, the local party shall record the matters on which the parties agree and those on which they differ. The parties shall use this as a platform for seeking a consensus on the job requirement level.

If the dispute cannot be resolved, the parties shall record the reasons for their viewpoints on the matter and submit them to the central labour market organisations for consultation.

The central labour market organisations undertake to consult the local parties together to work towards a resolution of the matter on a local level. The parties may use the views of an external expert to support the consultation.

3. requirement levels and pay scale groups for logistics positions (from 1 January 2024)

4. Job requirement levels and pay scale groups for clerical positions (from 1 January 2024)

5. PAY SCALE GROUPS

Pay scale groups until 31 December 2023 (A, B1, B2, C1, C2 and D)

Pay scale groups from 1 January 2024 to 31 May 2024 (A, B1, B2, C1, C2 and D) and from 1 June 2024 (A, B, C and D)

PAY SCALE GROUPS OF SERVICE STATION RESTAURANT SUPERVISORS

Before 1 April 2018, the pay scale groups of restaurant supervisors at service stations were determined in accordance with the collective agreement for the commerce sector that was in force from 1 February 2017 to 31 January 2018.

The supervisor pay scale groups shall only apply to employees working as supervisors. The decisive work for the purpose of determining the pay scale group is the work that the supervisor mainly performs.

6. Component of remuneration based on skills and performance

Introduction of and exit from the system

1. Instead of the number of years of service and training (hereinafter referred to as seniority), a company or part thereof may use a proportion of remuneration based on an assessment of the employee’s skills and performance (hereinafter referred to as a personal component of remuneration) to increment the pay in accordance with this protocol subject to local agreement with the shop steward.

Alternatively, a local working group (hereinafter referred to as the working group) may be appointed to agree upon the introduction, maintenance and development of a personal component of remuneration. The working group shall contain at least two representatives of the employer and two of the employees, one of whom shall be a shop steward. If no shop steward has been elected, the employees shall elect two members from among their number. They shall be entitled to spend a sufficient amount of time on the topic and receive training and consultation from their labour market organisations.

2. Local agreements shall be made in accordance with section 23 of the collective agreement, with the condition that the agreement shall be valid indefinitely and may be terminated with six (6) months’ notice unless otherwise agreed. Before termination, the matter shall be negotiated and any matters under dispute shall be recorded. The consultation of the central labour market organisations may be requested at the initiative of either party. In such a case, the notice period may begin only when either central labour market organisation states that the consultation has ended.

3. This protocol shall replace clauses 2–4 of section 11 of the collective agreement on seniority and training.

4. When a personal component of remuneration is used, the employee’s remuneration shall be determined according to the pay for a first-year employee in the applicable version of the wage annex in the collective agreement.

5. The pay of school students and trainees shall be agreed upon as part of the agreement to introduce the system. However, the pay of a school student must be at least equal to the amount stated in clause 11 of section 11 of the collective agreement, and the pay for a trainee must be at least equal to the pay of a trainee in the relevant pay scale group.

Example 63

An agreement is made to include a trainee’s pay in the system on personal components of remuneration. In such a case, a rate of trainee pay lower than level “1. Room for improvement” described in sections 9 and 10 is defined. The agreement shall state the amount of remuneration (at least 85% of the pay for the first year of seniority in the relevant pay scale group), the training period (maximum 12 months if the employee has not received a school student’s wage) and the assessment of performance during the training period.

6. Among other things, it is also advisable to cover the following in the agreement.

  • Any transitional periods for the entry into force of personal components of remuneration
  • Any levels of competence and performance that exceed level 4

Skill and performance assessment model and connection with remuneration

7. The personal component of remuneration shall be determined based on the factors relevant to the company’s activities. The assessment criteria are 1. job-related skills and achievement of targets, 2. work community and customer service skills and 3. the employee’s command of the work. The assessment criteria shall be determined in greater detail as part of the local agreement on the introduction of the personal component of remuneration.

8. The assessment of skills and performance shall be graded on the following scale from 1 to 4:

The local agreement on the introduction of the personal component of remuneration may specify a different weighting of the assessment criteria.

9. The personal component of remuneration shall be determined based on the total number of assessment points as a percentage of the pay for the specific position, and it shall be paid in addition to the pay for the specific position. Unless otherwise stated in the local agreement, the amount of the personal component of remuneration shall be as follows:

The assessment scale must be applied comprehensively in relation to the staff structure to ensure the effective use of the personal component of remuneration.

Wage conversion

10. When the personal component of pay is introduced or withdrawn, the impacts of the change on remuneration and the bases for determining remuneration shall be discussed with the shop steward or working group. In addition, each employee must be notified of the impacts of the change on their remuneration and the reasons for it.

11. When transitioning to a personal component of pay, if the total component of an employee’s pay based on the remuneration for the position and the employee’s skill and performance is lower than the previous rate of pay in accordance with the collective agreement, a transition bonus shall be created for the difference thereby arising. The transition bonus shall be treated as a supplement to the remuneration that may only be reduced or eliminated as the employment relationship continues if the employee transfers to a position in a more demanding pay scale group or the component of the employee’s remuneration referred to in this protocol increases as a consequence of an assessment of skills and performance. In addition, when calculating remuneration such as annual holiday pay, pay for a period of sick leave, bonuses calculated in percentage terms and pay rises, the transition bonus shall be treated as part of the base pay.

Example 64

Unless otherwise agreed, the personal component of remuneration for an employee in pay scale group B1 in the Helsinki, Espoo, Kauniainen, Vantaa area shall consist of the following according to the pay scale that takes effect on 1 June 2023:

Before the introduction of the personal component of remuneration, Employee A’s wage is EUR 13.70 per hour. The first-year pay in pay scale group B1 is EUR 12.62 per hour. The employee’s skills and performance were assessed and found to be on level 2 (good, meets expectations), so the employee’s personal component of remuneration is EUR 1.01 per hour.

When the employee transitions to the personal component of remuneration, the employee’s pay is calculated as follows:

  • Pay for the specific position: EUR 12.62 per hour (year 1 in pay scale group B1 in the pay scale for Helsinki, Espoo, Kauniainen, Vantaa entering into force on 1 June 2023)
  • The personal component of remuneration, level 2 (good, meets expectations), 8% of the pay for the position = EUR 12.62 per hour * 8% = EUR 1.01 per hour
  • The pay according to the pay structure is EUR 12.62 per hour + EUR 1.01 per hour = EUR 13.63 per hour.
  • As the previous wage of EUR 13.70 per hour is higher than the sum of the pay for the specific position and the personal component of remuneration, the transition bonus is calculated as the difference: EUR 13.70 per hour – EUR 13.63 per hour = EUR 0.07 per hour. The employee’s total remuneration is EUR 12.62 + EUR 1.01 per hour + EUR 0.07 per hour = EUR 13.70 per hour.

Example 65

If the skills and performance of an employee assessed at level 2 are later assessed at level 3 (excellent, surpasses expectations), the remuneration is calculated as follows: EUR 12.62 per hour + EUR 12.62 per hour * 12% = EUR 12.62 per hour + EUR 1.51 per hour = EUR 14.13 per hour. As the new personal component of remuneration (EUR 1.51 per hour) is greater than the sum of the personal component of remuneration and the transition bonus (EUR 1.01 per hour + EUR 0.07 per hour = EUR 1.08 per hour), the transition bonus is eliminated for the employee concerned at this stage. Following the changed assessment, the employee’s remuneration is EUR 12.62 per hour + EUR 1.51 per hour = EUR 14.13 per hour.

12. If the personal component of remuneration is no longer used as a consequence of the termination of the local agreement, the employee shall be placed on the seniority level, as referred to in clause 2 of section 11 of the collective agreement, immediately below the employee’s pay at the time of the transition. The number of years of service entitling the employee to advance in seniority after the transition shall be calculated from the moment of transition. However, if an employee has completed training as referred to in clause 4 of section 11 of the collective agreement, the employee’s minimum seniority level shall be equivalent to at least 3 years of service.

Example 66

An employee’s wage is EUR 14.13 per hour when the personal component of remuneration is withdrawn. The wage applying to the employee at the time according to the annual seniority system shall be determined according to pay scale group B1 in the Helsinki, Espoo, Kauniainen, Vantaa table. The rate of pay immediately below the current wage is the wage for 5 years of seniority: EUR 13.79 per hour. The hourly wage paid to the employee remains EUR 14.13 per hour but he/she enters the annual seniority system at year 5. Three years after the annual seniority system enters into force, the employee moves to the pay for year 8, so the employee is entitled to the pay scale wage for year 8
in effect at the time.

Any general pay rises based on the collective agreement shall be implemented in the system on personal components of pay according to the collective agreement decision.

Evaluation procedure

13. A new employee’s skills and performance shall be assessed no later than six (6) months after the start of employment and whenever the employee’s duties change or at least once per calendar year. The assessment, grounds and impacts on pay shall be reviewed with the employee. A change of position refers to an alteration of the job title in the employment contract, such as a transfer from sales to clerical work.

Assessment of a new employee’s skills and performance

14. A new employee’s skills and performance shall be assessed within six (6) months of the start of employment.

The remuneration shall be revised as of the start of the payroll period following the assessment.

Annual assessment of skills and performance

15. Skills and performance shall be assessed at least once annually.

The local agreement on the introduction of the personal component of remuneration shall specify the timing of the assessment.

If an assessment leads to an improved evaluation of an employee’s skills and performance, the employee’s wage shall be revised from the start of the payroll period following the assessment.

Example 67

An assessment of skills and performance will be carried out by 31 December. Based on the assessment, an employee moves up one level. The new wage is valid from the next payroll period. For example, if the payroll period is 15 December to 14 January, and the assessment is carried out by 31 December, the new wage shall take effect in the payroll period from 15 January to 14 February.

If an assessment leads to a lower total score, the employee and their supervisor shall agree on the development measures required to stop the total score from changing. In such a case, the employee’s skills and performance
shall be reassessed six (6) months later, when the total score may decrease.

Example 68

An assessment of skills and performance will be carried out by 31 December. Based on the assessment, an employee’s performance score is considered to have decreased from level three to level two. As part of the assessment, an agreement is made on the development measures required to ensure the employee’s performance is assessed at level three. A new assessment is conducted at the start of July. If the new assessment finds that the employee has not corrected their performance, the personal component of remuneration may decrease to level two from the start of the next payroll period.

However, the overall score may only be lower than the assessment at the introduction of the personal component of remuneration for particularly weighty reasons.

Example 69

The personal component of an employee’s remuneration that was valid when the system was introduced can only be reduced for particularly weighty reasons. The reduction shall comply with the six-month assessment period described above. There may be grounds for such a reduction if, for example, the employee does not make a concerted effort to correct their behaviour. In any event, the reduction of remuneration must be reasonable in light of the circumstances.

If the total score for the employee’s skills and performance does not increase after three consecutive assessments, the supervisor shall justify their views in writing to the employee.

Assessment of skills and performance when the position changes

16. When an employee transfers to a new position, the employee’s skills and performance shall be assessed within six (6) months.

The new personal component of remuneration shall be calculated according to the pay for the new position, and it shall be paid from the start of the payroll period following the assessment. In the meantime, the employee’s pay shall be at least as much as their pay before moving to the new position.

Dispute resolution

17. Any disputes relating to the assessment of skills and performance shall be resolved in accordance with the negotiating procedure. The shop steward or working group shall be entitled to receive all the information necessary to examine the matter.

7. PAY SCALES, 1 June 2023 – 31 January 2025

The pay scales that applied before this were in force from 1 May 2022 to 31 May 2023.

Monthly salaries and hourly wages of employees in commerce, 1 June 2023 – 31 May 2024

Wholesale sales assistant grades II and III, 1 June 2023 – 31 May 2024

Mechanics and servicing staff, 1 June 2023 – 31 May 2024

Monthly and hourly wages of service station restaurant employees, 1 June 2023 – 31 May 2024

Service station restaurant: hourly wages of the representative of the licensee, 1 June 2023 – 31 May 2024

Monthly and hourly wages of service station restaurant supervisors, 1 June 2023 – 31 May 2024

8. PAY SCALES, 1 June 2024 – 31 January 2025

The pay scales that applied before this were in force from 1 June 2023 to 31 May 2024.

Monthly and hourly wages of employees in commerce, 1 June 2024 – 31 January 2025

Wholesale sales assistant grades II and III, 1 June 2024 – 31 January 2025

Mechanics and servicing staff, 1 June 2024 – 31 January 2025

Monthly and hourly wages of service station restaurant employees, 1 June 2024 – 31 January 2025

Service station restaurant: hourly wages of the representative of the licensee, 1 June 2024 – 31 January 2025

Monthly and hourly wages of service station restaurant supervisors, 1 June 2024 – 31 January 2025

9. BONUSES as of 1 May 2022

The working time bonuses have been in force since 1 May 2022.

The provisions concerning language bonuses were in force until 31 January 2023.

The provision on the logistics workers’ foreman (“nokkamies”) shall be in force until 31 December 2023.