New collective agreement

Baltic Organizing Academy:After nearly one year and three months of negotiations the Estonian Service Workers Union (ETKA) and SOKOTEL SOK Group a new collective agreement has been reached for nearly 250 workers at two of SOKOTELS hotels in Tallinn, Solo SOKOS and Original SOKOS Hotel Viru, and all its restaurants, bars, nightclub and spa.

The collective agreement was signed at the end of March and it is valid for two years. This is a monumental agreements as it is one of the first collective agreements for hotel and restaurants workers in Estonia. NU HRCT congratulates both parties for their effort and hopes it will be the stepping stone for ETKA to gain further members, new collective agreements and union strength in a very tough labor market. The collective agreement guarantees workers at SOKOTEL hotels with better working conditions and offers tourist the opportunity for responsible tourism in Tallinn.  

There are now more than three years since NU HRCT started funding an organizing project under the umbrella of the Baltic Organizing Academy in Tallinn Estonia. The project has been run in cooperation with the ETKA, which organizes worker in the retail, hotel and restaurant sector and our Finnish member organization PAM. NU HRCT has paid salaries for one organizer that has been focusing on recruiting and organizing members at hotels in Tallinn in order to get a collective agreement in place for their members. This agreement is a huge victory for all hotel and restaurant workers in Estonia as it will improve working conditions in the sector. ETKA is already planning their next organizing project in Tallinn, which will start soon.

The collective bargaining process has been complicated and tough, but the social partners have been able to discuss and resolve various issues regarding working time, shift schedules, bonuses and pay. In order to gain leverage during the negotiations the union and its members have enforced various actions such as pickets in Estonia and Finland, meetings and petition votes. In the end the negotiations ended up as a formal labor dispute, which was resolved with help from a public conciliator.

The collective agreement includes many essential paragraphs for the employees, which will improve working conditions and will help the company to retain experienced workers and recruit qualified workers in the future.

Wage system

Previously, the wages system was too complex for employees. Hourly rate were low and monthly salary varied greatly depending on bonuses. By signing the collective agreement, hourly pay was increased for all workers over the lifetime of the agreement and the bonuses have been reduced in some departments. By moving part of the bonuses into basic pay from the start of 2016, job security will increase and it will give employees more stable income in the future. The wage system has been simplified and the hotel has a more transparent individually based compensation system. The biggest pay rise is, for example, expected for nightclub waitresses, whose hourly rate will go up 34% over 2 years and all their bonuses will be kept as well.

Working time

Workers will also have an improved conditions regarding working time, rest periods, lunch breaks and work schedules. Previously there has not been any document available regulating the working time. Many workers did not have the possibility to take breaks during their work as the nature of work did not allow it. The new agreement guarantees all workers breaks during their shifts and clear rules for the implementation and changes of work schedules.

The new contract also manages various health and safety issues and the relationship between the union representatives at the workplace and the management. The employer also guarantees certain provisions to the shop stewards for them to be able to follow up on the agreement. Many issues are still to be resolved, but the partners intend to continue their dialogue at the workplace.