Finnish Commerce Federation: The scale of Government action is good, but additional action is needed

The scale of the package of supportive measures announced today by the Finnish Government to counter the damage caused by the coronavirus epidemic is good. However, new measures are needed. The time period for the amendments being made to the labour law and unemployment benefits is insufficient. In addition, the supportive measures aimed at businesses need to be complemented.

The Finnish Commerce Federation thanks the Government for the comprehensive package to safeguard jobs and livelihoods and to ease the economic pressure on businesses. According to the federation, additional measures are needed.

“The supportive measures announced today and earlier this week lay a strong foundation for reducing the duration of the economic downturn. The supportive measures are, however, insufficient, and the federation is pleased to see that the Government announced an additional action is planned,” says Mari Kiviniemi, Managing Director of the Finnish Commerce Federation.

Kiviniemi says it is essential that the financing of businesses is safeguarded by increasing its guarantee authority. The support from the supplementary budget granted through Business Finland and ELY centres is also welcome in fulfilling the pressing needs of specialty goods trade. For example, it is necessary to review the scale of direct support urgently. At the same time, we must ensure that financing decisions can be adopted swiftly.

“Additionally, we must ensure that the resources involved in helping entrepreneurs are sufficient – whether that’s banks, Finnvera or ELY centres. Applications must not get caught up in red tape, and we must put our efforts into implementation”, says Kiviniemi.

The Finnish Commerce Federation is very pleased that the proposals of the labour market organizations regarding labour law and unemployment benefits were adopted practically unchanged as part of the support package. The problem will most likely be that the actions are only in force for three months.

“Unfortunately, three months is not a sufficient time period for exceptional arrangements. Nevertheless, we are confident that the Government is prepared to extend these actions,” says Kiviniemi. Exceptions should be in force for a longer period of time because many trade sectors will be afflicted by the crisis with delay, such as the technical wholesale trade linked to industry.With regard to the amendments to legislation, it is essential to allow quick entry into force.

Earlier this week, the Finnish Commerce Federation and the Service Union United (PAM) agreed on exceptional provisions on the collective labour agreement to safeguard the future of businesses and jobs. The new provisions will enter into force on 19 March 2020 and remain in force during the coronavirus pandemic.

For more details, please contact:

Mari Kiviniemi, Managing Director, Finnish Commerce Federation, tel. +358 (0)50 511 3189, mari.kiviniemi@kauppa.fi