Finland’s Labour Reforms: A Nordic Outlier

Executive Summary

The Orpo government’s labour market reforms mark a sharp break with the Nordic model. Historically, the “Nordic model” in Finland referred to expanding welfare and strengthening labour rights through tripartite negotiation. In contrast, the Orpo government’s 2023 programme curtailed union power, limited strike rights, and cut social benefits — changes promoted largely by employer organisations. For the first time, reforms of this scale were introduced without negotiation with trade unions, undermining the tradition of social corporatism.

Government claims of Nordic convergence do not hold up. The report compares current labour market rules across Denmark, Sweden, Norway, and Finland. Of nine key Finnish reforms, only 2–4 have been implemented in any one country, and never all at once. Moreover, in areas such as unemployment benefits, collective dismissals, and strike restrictions, Finland’s measures go further than any Nordic peer. The government’s justification — that it merely aligns with neighbours — is therefore misleading.

Finland has become a clear outlier in the Nordic context. Unlike its peers, Finland is unilaterally reshaping the balance of power between labour and capital. The cumulative effect is a systematic weakening of employees’ bargaining power, a reduction in institutionalised conflict resolution, and an erosion of social trust. If sustained, this trajectory risks detaching Finland from the Nordic labour market model and replacing corporatist compromise with political confrontation.

Policy Recommendations

1. Reconsider unilateral reforms and restore negotiation with trade unions in the Nordic spirit of social partnership.
2. Safeguard the right to strike and the independence of the National Conciliator to maintain fair conflict resolution.
3. Avoid cumulative weakening of social protection, which risks widening inequality and undermining public trust.
4. Benchmark reforms transparently against Nordic peers, acknowledging differences in design and context rather than cherry-picking precedents.
5. Protect the integrity of the Nordic model by balancing labour market flexibility with strong employee rights and inclusive decision-making.