New collective agreement for the energy sector – 7.8% pay increases in three years
Trade Union JHL has approved the new collective agreement for the energy sector. The new agreement secures the employees in total 7.8% pay increases and many improvements to their terms and conditions of employment. The agreement covers a period until the beginning of April 2028.
The employees of the energy, ICT and network sector have a new collective agreement. The collective agreement negotiation result was achieved on 24 April and approved by the administrations of the negotiating parties in the following week.
The new agreement covers a period until 31 March 2028. After that, the agreement will be extended for one year at a time unless it is terminated in writing at least two months in advance. The first possible time when the agreement parties can issue a notice of termination is by the end of the year 2026. Termination is possible at that point if the economic outlook and employment situation of the sector calls for it. In that case the collective agreement period ends on 31 March 2027.
The sector had a period without agreement between the end of the old collective agreement period at the beginning of April and the completion of the new agreement. The negotiations were very difficult, but the results exceed the general level, says JHL’s Bargaining Specialist Kari Lehtinen.
The hardest questions concerned going under the pay scales with local agreements, stipulations regarding the local agreement procedure and a reform of family leaves.
– All subcomponents were extensive, and a lot of details had to be negotiated for them, Lehtinen explains.
The employee unions JHL and the Finnish Electrical Workers´ Union broke up the negotiations once when they were not making any progress.
– The deadlock was broken by interrupting the negotiations and by new thinking of all the parties. Despite a difficult starting point, we achieved a good end result.
JHL and the Finnish Electrical Workers´ Union represented the employees, and Service Sector Employers Palta and Finnish Energy represented the employers in these negotiations.
What does a negotiation result mean?
A negotiation result means that the negotiating parties in collective agreement negotiations have reached a consensus on the content of a new collective agreement. The executive bodies of the negotiating parties need to approve the negotiation result in order for it to be turned into the collective agreement on terms and conditions of employment.
Pay increases in 2025
On 1 August 2025, the employees get pay increases that consist of a 2.1% across-the-board increase and a 0.4% company-level increase allowance, unless a different local agreement is concluded by 18 July 2025.
Pay increases in 2026
On 1 July 2026, the employees get pay increases that consist of a 2.3% across-the-board increase and a 0.6% company-level increase allowance, unless a different local agreement is concluded by 12 June 2026.
Pay increases in 2027
On 1 July 2027, the employees get pay increases that consist of a 2.0% across-the-board increase and a 0.4% company-level increase allowance, unless a different local agreement is concluded by 18 June 2027.
The employer decides on how they use the company-level increase allowance for revising the employees’ personal pay components. Allocation is decided in each company or place of business. The employer uses the competence assessment system of the pay system for allocating the company-level allowance.
Other pay increases
The following pay components increase each year according to the across-the-board increase and company-level allowance:
- Pay in line with job requirements
- Additional allowances
- Locally agreed allowances
- Allowances payable to the chief shop steward and occupational safety and health representative
A number of updates in the agreement texts
Significant updates were made in the texts of the new collective agreement for the energy sector. The most important ones of these concerned pay scales, rules of local agreements and the number of family leave days.
No more local agreements on pay scales
The biggest disagreement in the negotiations concerned local agreements on the lowest wages. The agreement text was changed according to JHL’s proposition so that it became more favourable for the employees.
– It will not be possible to have a different local agreement on the lowest pay scales in future. The pay scales are observed as they are, Kari Lehtinen explains.
New rules for local agreements
A significant improvement was made to the local agreement procedure. In future, if the collective agreement requires agreeing on a matter with a chief shop steward or shop steward and these have not been appointed, such local agreement is made in a local agreement working group. The working group is appointed when either party proposes it. Employees have the right to choose two representatives into the working group.
More family leave days
A significant improvement was also made to family leaves. The number of paid family leave days of a parent not giving birth increased from 6 to 32 days. A parent who gives birth gets a pay for the 40 working days long pregnancy leave and for the first 32 working days of the parental leave.
Notifications
The National Conciliator’s office and the employers’ association and the employee union must be notified at least seven days in advance before taking political or sympathy industrial action. The notification needs to specify the reasons, start time and scope of the industrial action.
Obligation to re-employ
It is possible to deviate from the obligation to re-employ an employee with an agreement between the employer and the employee. The employer has an obligation to offer work to a former employee for four months after the end of the employment relationship if the employment has been terminated on financial or production-related grounds in accordance with the Employment Contracts Act. This obligation does not depend on the duration of the employment relationship.
Reduction in working hours
Reduction in working hours (“työajan lyhennys”) starts to accrue when the employment relationship has continued for two full months. If the employee has at least three years of work experience in this sector, reduction in working hours starts to accrue from the start of the new employment relationship. This provision applies to employment relationships that start on or after 1 July 2025.
Collective agreement working groups
Working group for the sector’s minimum terms and conditions of employment
The parties appoint a working group for the agreement period to discuss the use of foreign workforce and to review and update the Alan vähimmäistyöehdot guide (guide on minimum terms and conditions of employment in the sector) by 30 December 2025.
Working group for the pay system
The parties appoint a working group for the agreement period to discuss the usability of the pay system of the collective agreement. The parties organise shared training on pay systems.
More information:
Kari Lehtinen, Bargaining Specialist at JHL, 050 566 1567
Your trade union JHL negotiates on a number of collective agreements in 2025. Follow the negotiations on our website.
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