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

Finland’s Political Strikes: The Economic Toll and Impact on Business Investment

Companies in Finland are cutting back on production and reducing investments due to ongoing political strikes, according to a survey by Teknologiateollisuus ry. Four out of ten companies are decreasing their investments in Finland because of the strikes, with large companies being particularly affected. 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 was reported as minor by about two-thirds of medium-sized companies. However, some companies have already transferred their production to foreign units due to the strike, although the permanence of these transfers is uncertain. Logistics strikes have also affected companies, with nearly a third reporting that they had to close or limit their production. Difficulties in obtaining production inputs and implementing exports were also mentioned.

Concerns about reputational damage were raised as 60 percent of customers were affected by the strikes. Only about one in ten industrial companies thought that labor disputes could result in layoffs. However, not all member companies responded to the survey, which may impact 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.

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