The new government to be led by PM-designate Petteri Orpo of the National Coalition Party (NCP) is to release the details of its governing agenda at 5pm on Friday. In the meantime, details that have trickled out indicate that the right-leaning four-party cabinet will aim to push through significant changes in the Finnish job market. That follows four years of governance led by the Social Democratic Party, which has close ties to the labour union movement.
The Finnish news agency STT reported on Friday that the new government plans to change earnings-related unemployment benefits so that they will gradually decrease over time. Under its plan, benefits would be reduced by one fifth after eight weeks of unemployment. After about eight months, the benefit would be lowered to 75 percent of the original level.
That is in line with earlier reporting from the tabloid Iltalehti, based on a version of the government platform it has seen. Iltalehti also said that the Orpo administration plans to double the minimum amount of time of employment required before a worker is eligible for earnings-related unemployment benefits, raising it to one year from the current six months.
However, according to STT's information, the duration of earnings-related benefits will not be shortened from their current length of 300, 400 or 500 days.
The agency reports that the pro-business NCP has pushed for numerous restrictions on earnings-related benefits, while its main negotiating partner, the Finns Party, opposed such moves.
First sick day to be unpaid
The four parties have agreed on many other changes to the labour market, according to STT. It says that in the future an employee's first sick day would be unpaid, unless otherwise stipulated in their collective agreement.
Iltalehti reported that – assuming the government's plans are approved by Parliament – in future it will be possible to dismiss an employee more easily, simply citing any "reasonable cause". It will also make it easier for employers to offer one-year fixed-term employment contracts without having to cite any special reason for them.
The future government also wants to expand local bargaining – as opposed to centralised national collective agreements – to cover all companies. It will also seek to curtail the right to launch sympathy strikes and politically based labour actions.
The new government programme must still be approved by the executive boards of all four parties. Together they hold 109 seats in the 200-seat legislature.