Finnish left trade unions angered by new labour reform

Finland’s left-wing parties and trade unions are unhappy about the new right-wing Finnish government’s push to reform employment and social security legislation to boost jobs and growth.

The new government programme in Finland introduces a significant change in the approach to work and benefits. The key principle is that work should always offer greater financial benefits than relying solely on social benefits.

Previous governments focused mainly on providing employment and economic growth incentives through positive measures. However, the current approach adopts a more assertive stance, combined with certain tax reductions, to encourage individuals to choose work over benefits.

According to the latest Finnish Labour Force Survey, published by Statistics Finland on Tuesday, the country’s unemployment rate is 6.9%. In order to achieve its ambitious goal of integrating 100,000 people into the labour market, the government has proposed several measures that are sure to provoke a reaction from the left.

One of the proposed measures is gradually reducing earnings-related unemployment benefits over time. After two months of unemployment, these benefits would be reduced by 20%, and after about eight months, they would be reduced to 75% of their original level. However, it is important to note that the duration of these benefits will remain unchanged at 300, 400 or 500 days.

Critics of the proposed reforms remain wary of the intricate details, with one change, in particular, causing concern: workers will no longer be paid for their first day of sick leave.

Among the controversial reforms is extending local bargaining to companies outside the scope of centralised national agreements. In addition, stricter rules, including penalties, will be introduced to discourage sympathy strikes and politically motivated industrial action.

All three major unions have voiced their objections, accusing the government of reducing their influence in the labour market.

The government’s programme has been described as “unbalanced” and heavily influenced by employers’ organisations. Tensions are rising as the reforms face possible approval by parliament, and demonstrations are being prepared for next autumn.

(Pekka Vänttinen | EURACTIV.com)