Danish store workers get pay rise in new bargaining agreement
Some 150,000 people who work in retail in Denmark will see their pay increase after trade unions and employers’ organisations came to a new agreement on working terms.
The union HK Handel and the Danish Chamber of Commerce (Dansk Erhverv) announced the conclusion of collective bargaining negotiations on Wednesday, news wire Ritzau reported.
The agreement covers around 150,000 people who work in the retail sector.
Under the new agreement, the lowest wage that can be paid to staff will go up by the equivalent of 721 kroner per month. The increase is set to take effect through pay rises once per year during the two-year term covered by the agreement.
Additionally, a so-called fritvalgskonto (“free-choice account”) will see its deposits rise by two percent. Workers can choose whether to use the account for salary, holiday or pension.
Employer contributions to staff pensions rise from 8 percent to 10 percent, while contributions from staff pay go down by 2 percent.
Danish trade unions negotiate with employers’ organisations every few years to develop collective bargaining agreements (overenskomster in Danish) regulating many aspects of Denmark’s labour market, from wages to pensions and paid parental leave.
Union members and employers are given the option to vote for or against the bargaining agreement, as is the custom under the Danish labour model. Leaders of unions will generally issue recommendations to members on whether or not to vote for the agreement.
READ ALSO: EXPLAINED: What is a Danish collective bargaining agreement?
“This has been a long negotiation process and an intense final straight,” the vice CEO with the Chamber of Commerce, Laurits Rønn, said in a statement.
“Both sides typically say after the end of collective bargaining negotiations that it was hard. This time I’d say it was the toughest negotiations I’ve been a part of,” he said.
“But we have to say it’s an expensive agreement,” he said.
Collective bargaining deals this spring are likely to see wage increases for workers due to higher living costs connected to inflation.
An agreement for workers in the industrial sector was announced last weekend, also securing increased pay in response to inflation.
Another deal, in the financial sector, was also announced on Wednesday. That agreement will see 41,000 workers covered by the participating unions receive a wage increase of 4.5 percent this year and 3.7 percent next year, Ritzau reported.
READ ALSO: ‘Be very blunt’: How to navigate Danish office culture and come out on top
Comments
See Also
The union HK Handel and the Danish Chamber of Commerce (Dansk Erhverv) announced the conclusion of collective bargaining negotiations on Wednesday, news wire Ritzau reported.
The agreement covers around 150,000 people who work in the retail sector.
Under the new agreement, the lowest wage that can be paid to staff will go up by the equivalent of 721 kroner per month. The increase is set to take effect through pay rises once per year during the two-year term covered by the agreement.
Additionally, a so-called fritvalgskonto (“free-choice account”) will see its deposits rise by two percent. Workers can choose whether to use the account for salary, holiday or pension.
Employer contributions to staff pensions rise from 8 percent to 10 percent, while contributions from staff pay go down by 2 percent.
Danish trade unions negotiate with employers’ organisations every few years to develop collective bargaining agreements (overenskomster in Danish) regulating many aspects of Denmark’s labour market, from wages to pensions and paid parental leave.
Union members and employers are given the option to vote for or against the bargaining agreement, as is the custom under the Danish labour model. Leaders of unions will generally issue recommendations to members on whether or not to vote for the agreement.
READ ALSO: EXPLAINED: What is a Danish collective bargaining agreement?
“This has been a long negotiation process and an intense final straight,” the vice CEO with the Chamber of Commerce, Laurits Rønn, said in a statement.
“Both sides typically say after the end of collective bargaining negotiations that it was hard. This time I’d say it was the toughest negotiations I’ve been a part of,” he said.
“But we have to say it’s an expensive agreement,” he said.
Collective bargaining deals this spring are likely to see wage increases for workers due to higher living costs connected to inflation.
An agreement for workers in the industrial sector was announced last weekend, also securing increased pay in response to inflation.
Another deal, in the financial sector, was also announced on Wednesday. That agreement will see 41,000 workers covered by the participating unions receive a wage increase of 4.5 percent this year and 3.7 percent next year, Ritzau reported.
READ ALSO: ‘Be very blunt’: How to navigate Danish office culture and come out on top
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.