A months-long labour dispute in Finland's aviation sector has ended with a deal between the Finnish Aviation Union (IAU) and Service Sector Employers Palta, according to the National Conciliator's Office.
The two sides accepted a third mediation proposal late on Saturday, resolving a dispute that had caused significant disruption for travellers throughout the spring and summer.
As a result, all industrial actions scheduled between 16 and 25 July have been cancelled.
Palta said in a statement that the new collective agreement will last approximately 1.5 years.
"After prolonged negotiations, it's good that we were able to reach a mutually acceptable deal," said Palta's Director of Labour Market Affairs Minna Ääri. However, she expressed disappointment that the agreement didn't include broader development of working conditions alongside the wage settlement.
The IAU also confirmed the agreement and said the parties will review the impact of earlier cost-cutting agreements on employees' earnings during the contract period, with the aim of addressing them in future negotiations.
IAU Chair Juhani Haapasaari also said he is pleased that a compromise has been reached in a difficult and long labour dispute.
"It is better than having the [dispute] dragged out even longer. In that sense we are satisfied, yes," Haapaasaari told Svenska Yle.
However, Haapasaari said that the settlement reached was the second best for the IAU. The union had hoped that the interpretation of the savings agreement would have been taken to the labour court. According to Haapasaari, this possibility has been included in the settlement proposal.
According to the IAU, wage increases under the new deal will follow Finland’s so-called general line — a wage increase in line with Finland’s general labour market policies. No textual changes were made to the existing collective agreement.
Negotiations had dragged on for over six months, during which Finnair cancelled more than 1,200 flights due to IAU strike action. Palta estimates the cancellations affected around 100,000 passengers.
Updated 15:49 with comments from Juhani Haapasaari.
