Collective bargaining in Finland’s forestry sector will cease after current agreements expire over the next 15 to 27 months, the Finnish Forest Industries Federation (FFIF) announced on 1 Oct 2020. The FFIF’s decision likely will require employers and employees in the forestry sector to change how they negotiate on employment conditions, salaries, and many other aspects of employment contracts.
Traditionally, national labor unions and industry federations, which negotiate national and industry-specific agreements that bind all firms in a given industry, have had a strong impact in Finland. The FFIF’s decision marks a significant change — and labor unions likely will seek to bargain with individual companies, requiring employers to manage their labor relations and bargaining arrangements. The FFIF said that recent centralized bargaining agreements failed to meet the varying needs of members in the forestry sector. Furthermore, the decision could have a broad impact if other large industry federations decide to discontinue collective bargaining in Finland.