Workers call on Parliament for measures to save jobs in Finland

Minister of Labour: Government subsidies to companies that move abroad should be reimbursed more effectively

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A delegation of concerned workers from Perlos, Leaf, Foxconn, and the Finnish Food Workers' Union approached Parliament on Tuesday with an appeal for measures to keep Finnish jobs from disappearing abroad.
      Representatives from other unions were also included in the delegation.
      One of the MPs who accepted the appeal, Paula Risikko(National Coalition Party), described the meeting as sad and touching.
      "The delegation referred to the recent layoffs as a tsunami that had affected their entire families. In their view the state authorities had failed to support them in their time of need."
      Those signing the petition asked for the Finnish system for protection in cases of termination to be improved to match the European level. They also insisted on reimbursement of government subsidies handed out to companies that later on close up shop and disappear abroad.
      In addition, the delegation called for restrictions to the rights of foreign capital investors to buy and sell Finnish companies, should such transactions lead directly to job cuts.
      The worried workers suggested that the State set up a committee to keep jobs from disappearing.
     
"If a politician says nothing can be done about this, then we really have cause for worry. What gives me hope is that not too many opinions of that nature were heard today", rejoiced Veli-Matti Kuntonen of the Finnish Food Workers' Union.
      Apart from the right-wing populist True Finns, all other Parliamentary groups were present to receive the delegation.
     
Politicians find it difficult to come up with an unequivocal answer to the problem of jobs moving abroad in the current wave of globalisation.
      Minister of Labour Tarja Filatov (SDP) agrees with the delegation that grants and subvsidies should be reimbursed more effectively. "We still have many corporate subsidies, such as those paid by Tekes, [the National Technology Agency of Finland], the reimbursement of which is currently impossible", Filatov explained.
      The leader of the Christian Democrat Parliamentary group Sari Essayah suggests that state become a capital investor for factories that are under threat of closure, in order to keep the production in Finland. "Or the state could at least assist in finding new investors."
      Minister of Labour Filatov also agrees that some form of governmental support might come into question in order to ensure the factories and jobs remain in Finland.
     
Risto Paaermaa, Deputy Director General at the Ministry of Trade and Industry, takes a cautious stand on new government subsidies, as they might contradict EU fundamentals. "The free internal market within the European Union makes it possible for companies to invest freely across national borders."
      In Paaermaa's view, for example the French model, where the government pays subsidies to companies that consider leaving the country or to companies returning from abroad, would not suit Finland. The French system mainly applies to small businesses and the sums paid are of such modest scale that they do not need to be reported to Brussels.
      Paaermaa argues that companies' freedom of movement should not be distorted or prevented with subsidy systems. "In our view, we should rather concentrate on attracting businesses by offering them a competitive operating environment."


Previously in HS International Edition:
  Mobile phone components manufacturer Foxconn eliminating 200-300 jobs (14.6.2005)
  Sweets manufacturer Leaf shuts down its plant in Turku (25.5.2005)
  Perlos expanding in China (17.5.2005)

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