DI and 3F Transport enter into collective agreement for the transport sector
After having negotiated for more than one month, including non-stop negotiations from Thursday afternoon to Friday evening, 3F Transport and DI have reached an agreement to renew the collective agreements for the transport sector. With this agreement, a ground-breaking collective agreement has been reached for the standard wage area. The agreement, covering e.g. lorry drivers, warehouse workers and port workers, sets out the framework for 40,000 employees in just over 900 DI member businesses in the transport sector.
“We have worked intensively to reach an agreement that will guarantee security and competitive strength for businesses and employees in the transport sector over the next three years. Reaching an agreement has not been easy, but we have succeeded in striking a balance where the employees get a number of distinct improvements without compromising the competitive strength of the businesses,” said Director General of DI, Lars Sandahl Sørensen.
He emphasises that the agreement secures a range of small – but important – simplifications and improvements for the employer side, including greater flexibility in the special savings scheme (optional pay account).
“It’s important for both employers and employees that our agreements are as simple and flexible as possible. We’re therefore pleased that we’ve been able to agree on a number of new administrative breakthroughs, such as holidays taken being counted in hours and the option to have employees’ special savings disbursed together with their salary if this has been agreed locally. This also helps ensure that employees perceive the special savings they get from the collective agreement as a part of their salary,” said Lars Sandahl Sørensen.
The parties have also agreed that a part of the wage increases may be allocated locally if so agreed at the individual businesses. The new agreement also includes three weeks’ additional earmarked parental leave with pay, which means that the period with earmarked parental leave with pay for the parent not taking maternity/paternity leave is now eight weeks.
“Both parties to the agreement have been focused on securing a more equal distribution of the parental leave – throughout the transport sector. I’m extremely pleased that we’re making such a clear statement that the two sides of industry have once again jointly stepped up to take social responsibility and find solutions that benefit the businesses and, by extension, Denmark,” said Lars Sandahl Sørensen.
The new agreement also entails better and more flexible options for assessment of real competences of employees in connection with supplementary training.
“Supplementary training and competence building is key to both businesses and employees. It’s a great relief that in future we will be able to complete an assessment of real competences online in just a few hours. Up until now, the employees had to take a full day off from work to do this. A smarter option has been demanded across the board, and we’ve now found a solution,” said Lars Sandahl Sørensen.
Key elements of the agreement between 3F Transport and DI on a new three-year collective agreement applicable from 1 March 2020 to 1 March 2023
Higher pay and contributions to special savings scheme
The standard rate will increase by DKK 3.20 as from 1 March 2020, DKK 3.20 as from 1 March 2021 and DKK 3.15 as from 1 March 2022.
The hardship allowance will increase by 1.6% per year.
The rates for trainees and apprentices will increase by 1.7% per year.
The contribution to the special savings scheme (optional pay account) will increase by 1 percentage point per year to total 7% of the employee’s pay as from 1 March 2022.
More earmarked parental leave
The period of leave with full pay is extended from a total of 13 weeks to 16 weeks. Of the 16 weeks, the parent taking the maternity/paternity leave is entitled to five weeks’ leave. The other parent is entitled to eight weeks’ leave, while the remaining three weeks of leave may be distributed between the parents.
Improved conditions for employees with long-term illnesses
The period during which employees covered by the Joint Agreement who are absent due to illness receive pay from their employer is extended from 56 days to 70 days. In addition, employees with more than three year’s seniority with a business cannot be given notice of termination in the period during which they receive sick pay (now extended to 70 days).
More freedom for families with children
In future, employees will be entitled to an additional day off if their child is ill for more than one day. In addition, employees will be entitled to time off to attend doctor’s appointments with their child. The employee may in both cases choose to have an amount disbursed from the special savings scheme in connection with the time off.
Easier access to the Danish labour market model
In future, employers opting to be covered by a collective agreement by becoming a member of DI, and who do not already have a special savings scheme, will be able to finance a part of the contribution to the special savings scheme under the collective agreement within their existing payroll costs in order to make it more attractive for new employers to become part of the Danish labour market model.
Employers who have recently joined DI are also given the option of signing up to a stepping-up scheme for special savings and pension which grants them a grace period of up to three years before they have to pay full contributions. Moreover, employers not previously covered by the fund contribution scheme are allowed to hold off on payment until the second year of membership.
Improved education and training opportunities
Improved and more flexible opportunities for assessment of real competences.
Better opportunities for completing an assessment of real competences and training in connection with redundancy.
Pension contributions at any age
In future, employees choosing to continue working after they have reached state pension age will better be able to have their pension contributions disbursed as pay.
Moreover, trainees and apprentices will be eligible to enrol in a pension scheme when reaching the age of 18 years.
More influence for health and safety representatives and enhanced collaboration
The duties and function of health and safety representatives have been strengthened through the use of new technology, the green transition and other initiatives.
Focus on collaboration and dialogue at all levels between management and employees about the green transition, a changing labour market and new technology (e.g. driverless lorries).
More flexibility in holiday taking
The local parties may agree that employees are allowed to count holidays taken in hours.
Improved possibilities of local pay
The parties have agreed to let the local parties allocate a larger proportion of the salary increase e.g. for performance-enhancing pay systems. At the same time, the parties to the collective agreement will support the use of local pay by the local parties.
Assessment of development in various forms of employment in the transport sector
The parties will jointly assess the development in different forms of employment in the transport sector, including discussing the impact on the businesses’ planning of work and the employees’ job security.