Some 290,000 Finnish workers began a two-day strike on Thursday to protest the government’s labor market reform plans, which include proposed cuts to the social welfare system.
Like its Scandinavian neighbors, Finland is known for its generous welfare model, but the coalition government led by Conservative Prime Minister Petteri Orpo is seeking to reduce the budget deficit and “improve Finland’s long-term competitiveness”. They are calling for a more “export-driven labor market model.” ”
Who is on strike in Finland?
The proposal has infuriated trade unions, who are currently threatening to bring the country to a standstill with strikes across industries including public transport, energy, schools, healthcare, hospitality, retail and the postal service. .
They are planning to shut down air traffic in Finland from February 1 to 2, causing national carrier Finnair to cancel 550 flights and affect 60,000 passengers.
According to official statistics for 2023, striking workers account for around 13% of the 2.29 million people employed in Finland.
What are the proposed labor reforms?
Proposed cuts to Social Security include making the first day of sick leave unpaid and cutting unemployment benefits based on income, with benefits decreasing the longer someone is unemployed.
The reforms also include restrictions on the right to strike.
“The government’s plan is cold-blooded,” Jarkko Eloranta, president of Finland’s largest trade union group SAK, told Reuters. “First the right to strike will be severely restricted, and then severe cuts will be enforced.”
However, the top industry association, the Confederation of Finnish Industry (EK), criticized the strike, with chief executive Jiri Hakamies saying: “Reforms are necessary, but unions are working hard to rectify the alarming economic situation.” It has not offered any alternatives.”
What impact could a strike have?
According to EK, the direct and indirect effects of the strike will cost gross domestic product around 360 million euros ($388 million), while fuel producer Neste’s refinery in Porvoo will It was announced that gasoline and diesel supplies would be suspended for approximately one year. week.
Strikes are relatively rare in Finland, especially in white-collar industries. But Pekka Listela from the Central Organization of Finnish Trade Unions (SAK) said the government’s proposal would “undermine the livelihoods of unemployed workers, especially low-income workers.”
He said the strike was aimed at showing the government “how big the resistance is to these reforms” and hoped it would “force the government to reconsider.”
Further industrial action is also planned for some specialized workers on February 6, with Akava, the umbrella trade union for university-educated workers, breaking away from what it calls Finland’s bargaining tradition. He appealed to the government not to abandon it.
mf/rt (AFP, Reuters, DPA)