Freedom of association and collective bargaining

The employees of Sampo Group must be free to form and join organisations of their choice that represent them, and which are consistent with local organising laws, without fear of intimidation or reprisal. The Sampo Group Code of Conduct sets the overall guiding principles on freedom of association and collective bargaining within Sampo Group. In addition, each Group company has adopted supplementary and more detailed policies, guidelines, and processes for their own purposes. The Group also expects its suppliers and business partners to respect the freedom of association and right to collective bargaining.

The collective or local agreements can stipulate applicable employment conditions concerning, for example, health and safety, remuneration, working hours, work time flexibility, training and competence development, employability/life-long learning, and equal opportunities. The terms of collective bargaining agreements apply to most employees (excluding top management), even if they are not formally covered by the agreements. Several collective bargaining agreements apply to Sampo Group’s operations in the European Economic Area, depending on geographic location and national practices. In the Group’s UK operations, trade unions are not formally recognised. However, employment terms are regularly benchmarked against market practices.

Sampo Group strives for a constructive, trustful, and open dialogue with employees and their elected representatives with the purpose of developing the company and safeguarding the correct treatment of all employees. Especially in locations where employees have decided not to appoint representatives, the Group promotes direct and open communication between employees and management. Sampo Group’s local processes are designed to ensure equal treatment regardless of unionisation, based on the employee’s constitutional right. In the Nordics and Baltics, union members are informed and/or consulted accordingly upon changes in the organisation. In the UK, Hastings Colleague Forum (HCF) provides consultation with democratically elected employee representatives on significant changes to the company, including organisational structure change, terms and conditions of employment, and remuneration and benefits.

Sampo Group has no Global Framework Agreements. However, If has established an agreement on an information and consultation procedure with workers’ representatives, which is based on the European Works Councils’ stipulation. The highest level of engagement with workers’ representatives takes place in the Communication Council, chaired by the Head of HR. The Communication Council meets quarterly to discuss topics that concern more than one country or business area. Sampo Group has forums on business area level, where senior management regularly meet with Nordic union representatives to proactively share information and discuss business development. In addition, If has mandatory working environment committees based on the country’s legislation and practice, and local work environment committees in certain major offices. Depending on local legislation, the representatives are either appointed by the labour union or elected by the employees.

All Sampo Group employees have a written employment contract with mutually agreed terms and conditions, including notice periods on both sides. In addition, all employees have the right to fair remuneration.