“The trade union movement is yet again threatening to stop the exports and several industrial activities of the country unless the Government complies with its demands,” he writes in a guest contribution to Helsingin Sanomat.

There are striking similarities between the current economic conditions and the recession of the 1990s in Finland, estimates Iiro Viinanen (NCP), a former Minister of Finance (1991–1996).

Viinanen argues that strikes are a fool's errand that could destroy all saplings of economic growth.

“Those who go on a strike will feel the pinch, one way or another. The means to generating a decline in the standard of living are varied, but you could also choose not to generate one. Choose freely,” he states.

He believes going on strike is far too easy due to the fact that strike benefits are essentially a non-taxable form of income. “I wonder how much different unions have in non-taxable incomes and investments made with those incomes. The surplus accumulated from membership fees every year is only peanuts compared to the investments made over the years.”

Jan von Gerich, a chief strategist at Nordea Bank, warned the Finland of the repercussions of strikes in an article published last week.

Aleksi Teivainen – HT

Photo: Petteri Paalasmaa / Uusi Suomi

Source: Uusi Suomi