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A survey conducted by Teknologiateollisuus ry has revealed that ongoing political strikes in Finland are causing significant disruptions for companies. Four out of ten companies reported reducing investments in the country due to these strikes, with concerns about their extensive and severe effects on business operations. Large companies were particularly concerned, with 20 percent indicating a significant reduction in investments and 32 percent opting for a slight reduction.
Despite the challenges posed by the strikes, about two-thirds of medium-sized companies stated that they had not experienced any significant impact on their investments. However, many companies expressed concerns about how the ongoing labor disputes could influence future investment decisions. Additionally, a quarter of large companies revealed that they had already shifted production to foreign units in response to the strikes.
Logistics strikes have also affected production for nearly a third of industrial companies, even if they were not directly targeted by the strikes. Companies reported difficulties sourcing production inputs, implementing exports, and meeting customer demands due to these disruptions. There are also fears about reputational damage and potential layoffs as a result of the ongoing labor disputes.
The survey was conducted from March 11th to 18th, but its representativeness was limited due to a low response rate of only 645 companies responding out of nearly two-thirds of member companies who did not participate. The government is considering legislation to limit the duration of political strikes to 24 hours, which may alleviate some concerns for businesses. However, directors and industry experts worry about the broader economic impact of prolonged strikes on Finland’s economy and urge a resolution before further disruptions occur.
In conclusion, political strikes in Finland are having far-reaching consequences on companies across all sectors, prompting them to consider potential production shifts and investment reductions due to ongoing uncertainties. The government needs to take action quickly before these disruptions cause irreparable harm to the Finnish economy.
