The collective agreement between The Chemical Industry, The Finnish Plastics Industries Federation and The Industrial Union has been approved

The administrations of the Chemical Industry Federation of Finland, the Finnish Plastics Industries Federation, and the Industrial Union have today approved the negotiation result reached on January 21, 2025, regarding new collective agreements for the Basic Chemical Industry, the Oil, Natural Gas, and Petrochemical Industry, as well as the Plastics Product Industry and the Chemical Product Industry.

The agreements cover approximately 13,000 employees.

The collective agreement period is primarily for three years, and wage increases have also been agreed upon for all three years. The salary increases during the agreement period are 7.8 percent. In 2026 the parties will jointly review the industry´s outlook, employment situation, and cost competitiveness. Based on this review, it is possible that the agreed increase level for 2027 may be adjusted or that the agreements may be terminated, ending on December 31, 2026. If the agreements are not terminated in 2026, they will remain in effect at least until December 31, 2027.

For the first time, the agreements allow local wage negotiations for chemical industry employees for all three years regarding the timing, amount, and implementation of wage increases. Previously, similar practices have been in place for salaried employees and senior salaried employees in the industry. Local wage agreements also enable companies to respond to difficult financial situations. If a local wage agreement is not reached, the wage increases and their timing will be as follows each year:

• May 1, 2025: General increase of 2.1% and company-specific portion of 0.4%
• April 1, 2026: General increase of 2.3% and company-specific portion of 0.6%
• April 1, 2027: General increase of 2.0% and company-specific portion of 0.4%

– The agreed wage increase level is high, but under the circumstances, it is a reasonable compromise. In 2025, in particular, some member companies of the Chemical Industry Federation are facing significant challenges, including layoffs and redundancies, so the possibility of local wage agreements is essential, says Minna Etu-Seppälä, Director, Industrial relations at the Chemical Industry Federation of Finland.

The Chemical Industry Federation considers the negotiated text provisions in the collective agreements to be positive. These include, among other things, the continuation of flexible working time agreements on a trial basis, the potential implementation of certain labor law reforms in the industry, and the extension of the industry’s apprenticeship model for young workers until the end of 2027. The continuous development of contract texts in each negotiation round demonstrates the commitment of the industry’s negotiating parties to progress. We appreciate our negotiating partner, the Industrial Union, for this.

– This negotiation round was particularly difficult and prolonged unreasonably from the companies’ perspective. Strikes affected chemical industry companies over a three-week period, and some companies also faced support strikes over a four-week period. The primary reason for the prolonged negotiations was the public statement by SAK-affiliated unions in November 2024, setting an unrealistic wage increase target, says Etu-Seppälä.

However, we are pleased that a resolution has now been reached, and all industrial actions will be canceled. Companies can now normalize their operations and focus on getting the export industry back on a growth track, which is also crucial for employment in the industry and throughout Finland.

Minna Etu-Seppälä

Director, Industrial relations

+358 40 778 0182 minna.etu-seppala(a)kemianteollisuus.fi

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