The Finnish government has introduced a draft bill that would end the tax deduction for union fees, sparking widespread concern among workers, trade unions, and opposition parties.
The proposed legislation, backed by Prime Minister Petteri Orpo’s right-leaning coalition, is likely to move forward in Parliament. While the government holds a majority, cracks have appeared within Riikka Purra’s Finns Party, suggesting not everyone within the coalition supports the plan.
A national survey commissioned by the Federation of Finnish Enterprises paints a clear picture. Only 20 percent of employed respondents support the bill. More than 65 percent oppose it. While small business owners and entrepreneurs showed stronger support, regular employees stood firmly against the move.
The bill also targets entrepreneurs by removing the tax deductibility of their association fees. This change is intended to create parity between union members and business owners.
If the law passes, 1 in 10 working people say they would consider quitting their trade union. Among Finns under 30, the figure rises to 14 percent. This suggests a growing risk of disconnection between younger workers and organized labor.
Even before this proposal, union membership was steadily declining. In 2013, 67 percent of Finnish workers were union members. That figure has now dropped to 56 percent. Among salaried staff in private companies, unionization has already fallen below the halfway mark.
Unemployment fund coverage is also shrinking. In 2022, 76 percent of workers were covered by an unemployment fund. That figure dropped to 70 percent in 2023. For workers under 29, only 50 percent remain covered, down from 61 percent the previous year.
Mikael Pentikäinen, CEO of the Federation of Finnish Enterprises, called the trend deeply concerning.
“In a changing labor market, this fall in unemployment fund membership is worrying. It puts the safety net for unemployed workers at risk,” he said in a public statement.
According to the Verian Finland survey, the main reason employees join unions is to secure earnings-linked unemployment benefits. The second most common reason is to improve working conditions. The survey polled around 1,100 working adults across Finland and has a margin of error of three percentage points.
This policy shift comes at a moment when trust in institutions is changing, and the value of traditional labor protections is being tested. As the bill progresses, it remains to be seen whether public opposition will pressure the government to revise its course or push ahead despite the backlash.
