The board of the Service Union United PAM on Wednesday approved a new contract for the retail sector and cancelled strikes that were planned for later this month.
The three-year agreement calls for wages in the sector to climb by a total of 7.8 percent.
The Confederation of Finnish Commerce, which represents the employers’ side, has also approved the agreement. The new collective agreement is valid until the end of 2028, although the third year can be terminated.
Pam chair Annika Rönni-Sallinen said at a press conference that the retail sector will also have a new wage system.
"It is a performance-based pay system, a significant innovation in the industry. In addition, we will continue to experiment with local bargaining," she explained.
Pam's goal in the negotiations was to maintain employee dismissal protection at the current level, improve the situation of part-time workers, and provide wage increases that would ensure employees’ purchasing power.
Wages will rise by 2.9 percent on 1 May this year. The second wage increase of 2.5 percent will take place in August 2026, and the third increase of 2.4 percent in May 2027. Meanwhile, a new remuneration system will be introduced in the autumn of 2026.
Government aims to make it easier to dismiss workers
"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 Rönni-Sällinen.
Many other sectors have agreed on arrangements to counter plans by the government led by PM Petteri Orpo (NCP) that would make it easier to dismiss workers. Currently, a "substantive and weighty reason" is required for dismissal. The government wants to change this to merely a "substantive reason".
The union called off a strike that was to begin in late March, targeting stores such as Gigantti, Ikea and Clas Ohlson.
The strike warning concerned 41 companies, where approximately 20,000 employees and supervisors work under the collective bargaining agreement.
PAM has staged several strikes in recent weeks including walkouts last week at ski resorts.
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