Strike-Stricken: The Impact of Political Strikes on Company Investments in Finland

Nearly half of companies scaling back investments in Finland amid strikes – “Economy’s pillars shaken”

A recent survey conducted by Teknologiateollisuus ry revealed that companies in Finland are limiting production and reducing investments due to ongoing political strikes. According to the survey, nearly half of the companies surveyed are decreasing their investments in Finland because of the strikes, with large companies reacting particularly harshly. Twenty percent of large companies stated that they would invest significantly less in Finland, while 32 percent said they would invest slightly less.

The impact of the strikes on investment decisions varied across different types of companies. About two-thirds of medium-sized companies reported that the effect was minor, while some small and large companies have already transferred their production to foreign units due to the strike. The permanence of these transfers is unclear.

Logistics strikes have also affected companies, with nearly a third of industrial companies reporting that they had to close or limit their production due to difficulties in obtaining production inputs and implementing exports. The survey indicated that 60 percent of customers were affected by the strikes, leading to concerns about reputational damage.

Only about one in ten industrial companies thought that labor disputes could result in layoffs, although not all member companies responded to the survey, impacting its representativeness. The government is enacting a law to limit the duration of political strikes to 24 hours, which could alleviate concerns for companies affected by the strikes.

At a press conference, industry representatives emphasized the wide-ranging effects of the strikes on their business operations and foreign investment decisions. Some companies are considering moving production to other countries due to concerns about workplace atmosphere and potential legal issues related to labor disputes. Despite potential laws to limit strikes, the impact on companies’ investment decisions remains uncertain as uncertainty around future labor disputes continues.

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