The Finnish government’s plan to amend the employment contracts act has the potential to spur both the creation of new jobs and the destruction of old ones, but it will not have a notable impact on the general employment situation, conclude Antti Kauhanen and Niku Määttänen of the Research Institute of the Finnish Economy (Etla).
Kauhanen and Määttänen have examined the employment impact of the proposals to make lay-offs easier for small businesses and promote the use of fixed-term employment contracts.
“The basic analysis is that the amendments increase hirings and redundancies, meaning that movements would intensify in both directions,” comments Määttänen.
The amendments, he adds, could have a positive impact on the position of unemployed job seekers and, especially, job seekers who have been unemployed for more than a year by providing them with more employment opportunities.
The Finnish government has proposed that businesses with no more than 20 staff be allowed to lay off staff on personal grounds and that businesses be allowed to hire under 30-year-old unemployed job seekers on fixed-term contracts without having to justify the fixed term. It is expected to submit the bills for parliamentary consideration this autumn.
Etla’s conclusions about the employment impacts of the proposals have been cited as a reason to oppose the proposed amendments by the Central Organisation of Finnish Trade Unions (SAK).
SAK on Thursday floated the possibility of resorting to industrial action if the government moves forward with its proposals, saying that the final decisions on the action would be made at workplaces after the summer holidays.
Aleksi Teivainen – HT
Photo: Heikki Saukkomaa – Lehtikuva
Source: Uusi Suomi