HELSINKI, Feb 1, 2024 (BSS/AFP) - Much of Finland will come to a standstill on Thursday and Friday as around 300,000 people walk off the job to protest against the government's proposed labour market reforms, including social benefit cuts.

Like its Nordic neighbours, Finland is known for its generous welfare model, which offers strong protection and benefits for employees.

But Conservative Prime Minister Petteri Orpo's coalition government has argued the country needs an "export-driven labour market model" in order to "boost Finland's long-term competitiveness".

The overhaul has infuriated labour unions, who have vowed to paralyse the country to force the government to back down.

Unions plan to shut down Finnish air traffic on February 1-2, leading national carrier Finnair to cancel 550 flights, affecting 60,000 passengers.

Trains across the country and metros, buses and trams in the capital will grind to a halt on Friday, while various unions have also called for work stoppages in the energy sector, schools and healthcare services.

Industry, restaurants, hotels, postal workers and other retail sectors and services will also be affected.

Daycare workers in greater Helsinki, as well as some grocery stores and factories, kicked off the protest movement on Wednesday.

Around 300,000 people are to take part in the protest movement, according to Finnish public broadcaster YLE, with the Central Organisation of Finnish Trade Unions (SAK) calling a mass demonstration for Thursday.

Among the reforms planned by the government is a change of the rules for collective bargaining negotiations.

Proposed cuts to social benefits would include making the first day of sick leave unpaid and cutting earnings-related unemployment benefits, with the amount decreasing the longer the period of unemployment lasts.

The reforms also include restrictions on the right to strike, and give more employers the option to negotiate agreements locally.

Markku Sippola, a senior lecturer in social sciences at the University of Helsinki, said the reforms constituted "a very significant change".

"They will weaken the employee's position in terms of both unemployment security and protection against unjustified dismissal and the right to strike," he told AFP.

"It isn't known yet what their effect will be in terms of collective bargaining, as the idea is to go towards more local agreements."

- More to come? -

The Confederation of Finnish Industries (EK) told AFP the direct and indirect effects of the strikes would result in a loss of around 360 million euros in gross domestic product.

Strikes are relatively uncommon in Finland, especially ones involving white-collar workers.

The majority of this week's strikes have been called by the SAK and the Finnish Confederation of Professionals (STTK).

Sippola said that more strikes were likely this spring.

The unions "haven't called for more yet, but I don't think it's impossible that they would call for more strikes if the government does not meet their requests at all".

Pekka Ristela, head of international affairs at SAK, said the government proposals would "weaken the livelihoods of especially low-income employees who become unemployed".

He said the strikes were intended to show the government "how much resistance there is to these reforms".

"Hopefully it will make the government reconsider," he said.

He said SAK was open to negotiation on changes "that would truly solve the challenges regarding employment and the economy, and that would be more balanced and fairer for different demographics".

Aki Rouhiainen, organisation manager at the service industry union PAM, said about 100,000 of its members were in jobs due to be affected by the strike.

He said PAM was also "most worried about different cuts to unemployment security and social security", since a "lot of the cuts unfortunately target the lowest-paid and lowest-income people".

More industrial action is also planned for some professional sector workers for February 6.