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Finland Labor Market Reforms Strike: Impact on Economy and Presidential Election

A large-scale strike against labor market reforms in Finland, planned for February 1, will affect almost all areas of life in the country and will cost Finland hundreds of millions of euros in losses.

Finnish trade unions organizing the strike oppose government reforms. The program of the 77th Cabinet of Ministers of Finland until 2027, published in June, outlines points for labor market reform, including pension reform, sick leave payments, unemployment, insurance premiums, simplification of dismissals, a ban on strikes and a number of others.

The wave of strikes began on Wednesday with an action by the trade union of preschool workers, due to which kindergartens were closed in the capital region.

At least 200,000 employees across the country will go on strike on February 1, and some unions will continue to strike on February 2. These days, the work of several factories will stop, retail stores and grocery chains will close, and public transport will stop.

Due to the strike, hotels, restaurants, banks, cleaning companies, post offices, delivery services will also remain closed, and bus and sea transport will also cease. In addition, air traffic at almost all Finnish airports will cease. Finnair expects about 550 flights to be canceled these days.

The Finnish Central Business Association estimates that the country will lose about 360 million euros in GDP due to the strike.

The largest action is planned by the Industrial Trade Union, which was the first to announce the date of the strike. The number of industrialists on strike will amount to more than 60 thousand employees. In addition, trade unions of builders, electricians, service workers, public sector and social security workers, the pulp and paper industry, trade unions of paramedical and junior medical staff, teachers, as well as the trade union of automobile and transport industry workers are participating in the strike.

In addition to the workplace strike, trade union associations also planned to hold a protest in central Helsinki on February 1.

The large-scale strike is taking place ahead of the second round of the presidential election, which will take place on February 11. During Monday’s televised debate, candidates gave differing assessments of the president’s role in such situations.

Poll leader and ex-prime minister Alexander Stubb expressed the view that the President may intervene in discussions about labor policy if security of supply is at risk, but in general such issues, in his opinion, are not part of the President’s job responsibilities. His opponent is the former head of the Ministry of Foreign Affairs Pekka Haavistoin turn, is of the opinion that the president can conduct “behind-the-scenes” negotiations with various parties to the conflict or make public calls.

2024-01-31 22:30:00
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