New agreement signed in motor trade and repairs

In late January 2003, a two-year collective agreement was reached for the Finnish motor trade and repairs sector when the AKU trade union and AKL employers' organisation accepted a proposal made by the National Conciliator. The agreement runs from March 2003 to March 2005 and is estimated to increase average wage costs by 5.9%-6%.

In November 2002, the central Finnish social partner organisations concluded a new two-year centralised incomes policy agreement for 2003-4 (FI0212103F). About 86% of wage earners and salaried employees working in sectors covered by the Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK) are covered by the central agreement. However, 10 trade unions affiliated to SAK chose to start separate negotiations over their own collective agreements.

On 27 January 2003, one of these unions, Automobile and Allied Sales Personnel’s Union (Auto- ja Konealan Unioni, AKU) signed a collective agreement with the Central Organisation for Motor Trade and Repairs (Autoalan Keskusliitto, AKL) for a two-year period from 1 March 2003 to 31 March 2005. The agreement covers 8,500 workers in motor trade and repairs.

It was not easy to obtain a result in the negotiations, and to finalise the agreement the parties needed assistance from the National Conciliator, who formalised the proposal for the final collective agreement. AKU estimates that average wage costs will increase by 5.9%-6% during the two-year contract period. These costs are broadly in line with the centralised incomes policy agreement, under which wage costs will increase by a total of 2.9% from 1 March 2003 and by 2.2% from 1 March 2004.