• Tue. May 28th, 2024

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

Byeditor

Mar 25, 2024

In the survey conducted by Teknologiateollisuus ry, companies reported on limiting production and reducing investments in Finland due to ongoing political strikes. According to the survey, four out of ten companies are decreasing their investments in Finland because of the strikes, with large companies reacting particularly harshly to the situation. Twenty percent of large companies stated that they would invest significantly less in Finland, while 32 percent said they would invest slightly less.

Regarding the impact of the strikes on investment decisions, about two-thirds of medium-sized companies reported that the effect was minor. The question about investments was asked tentatively, as it already implied reducing investments. Some companies have already transferred their production to foreign units due to the strike, although 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. Difficulties in obtaining production inputs and implementing exports were also mentioned. 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. 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, with some companies considering moving production to other countries. Concerns about workplace atmosphere and foreign investment were also raised. Despite potential laws to limit strikes, the impact on companies’ investment decisions remains uncertain.

By editor

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