The Finnish government has continued to come under fire for its recent decision to make it easier for small businesses to lay off staff.
Service Union United (PAM) on Thursday warned that almost a half a million employees will be at risk of losing their jobs if the proposal to allow businesses with no more than 20 staff to make lay-offs on personal grounds receives the requisite support.
“PAM’s estimates suggest that approximately 460,000 wage earners work for businesses that will receive new tools for laying off staff under the government’s proposal,” it stated.
“In Uusimaa alone, roughly 170,000 people are employed by businesses with no more than 20 staff. If the government’s proposal to relax the criteria for lay-offs is approved, it will undermine job security for a large group of employees,” adds Olli Toivanen, an economist at PAM.
PAM warns that the proposal would lead to an up-tick in lay-offs but would fail to encourage hiring.
The government has justified its decision by arguing that relaxing the lay-off criteria for small businesses will mitigate the risks taken by such businesses when hiring new employees, thus encouraging them to increase their headcount.
Aleksi Teivainen – HT
Photo: Heikki Saukkomaa – Lehtikuva
Source: Uusi Suomi