Employee-employer relations

Fortum’s business operations are developed and strengthened in good collaboration with employees. We believe that the successful management of business is built on relationships of trust between management and employees and on the free flow of information. Fortum respects employees’ freedom of association and the right to collective bargaining.

In our operating countries, freedom of association and collective bargaining are guaranteed by law. The exception to this is India, which has not ratified the International Labour Organisation’s (ILO) Convention on the right to freedom of association and collective bargaining. In India, we comply with the same practices as in other countries of operation, and we do not limit or prohibit the right to freedom of association.

We apply local collective bargaining agreements in compliance with the scope of each respective agreement in all our operating countries. Collective bargaining agreements cover about 90% of Fortum’s employees.

Share of personnel within collective bargaining agreements, by operating country:

  • Latvia, Sweden and Russia: 100%
  • Finland: 100% (except top management)
  • Estonia: 25%
  • Poland: 32%

There are no collective bargaining agreements in Lithuania. Employment contracts are based on local legislation and on the company’s human resources policy.

Fortum European Council

Fortum European Council (FEC) convenes, as a rule, once a year. FEC is a Europe-level cooperational function in which personnel and employer representatives meet to discuss matters related to Fortum. In 2015, the Fortum European Council (FEC) held a meeting in May in Finland, and personnel representatives from Finland, Sweden, Poland, and Estonia participated. The Council’s themed workshops focused on, among other topics, the future outlook for the energy industry, occupational safety and health, and wellbeing. In addition to Fortum European Council meetings, local level meetings are held several times a year in different countries based on need. 
 

Restructuring situations

In situations of organisational restructuring, we negotiate with personnel representatives in compliance with each country’s local legislation and contractual procedures. In situations involving personnel reductions, we want to primarily support the re-employment of the personnel.
 
In restructuring situations, the length of the obligatory negotiation period depends on the scale of upcoming changes and varies in Fortum’s different operating countries. The shortest period for obligatory negotiations is three weeks (Finland) and the longest is 90 days (India).  There is no statutory obligatory negotiation period in Sweden, Norway and Lithuania.
 
The minimum notice period is based on local legislation, collective agreements or employment contracts, which are in harmony with the local legislation and agreements.
 
In situations involving personnel reductions, we offer outplacement services and, case by case, investigate the possibilities to arrange vocational training in cooperation with local unemployment authorities or service providers. Retraining for employees who continue working is arranged based on organisational and individual needs.
 
In situations involving personnel reductions, the content of the support package that we offer is decided based on local needs. The financial compensation of the package is usually based on the years of employment at Fortum.

2/25/2016