Feb 10 • 06:48 UTC 🇫🇮 Finland Yle Uutiset

The first numbers tell: The removal of tax deduction rights for membership fees is already reflected in departures from trade unions

The Finnish government's removal of tax deduction rights for union membership fees has led to a noticeable decrease in union membership in certain sectors.

The Finnish government decided at the turn of the year to eliminate the tax deduction rights for membership fees paid to labor market organizations. This decision has raised questions about its potential impacts, particularly on the membership numbers within the trade union movement. Initial indications of this impact are starting to be observed in unions, especially those with direct membership dues, predominantly within the academic sector that represents highly educated employees.

Samu Salo, the president of the Engineer's Union, reports that the removal of the tax deduction is reflected in their membership statistics. He noted that approximately 400 members have left the union in December and January compared to a typical year. This decline in membership is partly attributed to the recent tax policy change, which is a significant concern for trade unions that rely on membership fees for their operations.

Additionally, the change has affected the number of new joiners. According to Salo's estimates, there have been about 100 fewer new members joining the union than would typically occur at this time of year. This trend raises alarms about the long-term sustainability and influence of unions, as membership fees are critical for funding their activities and advocacy efforts, especially in a context where such fee structures are essential for representing workers' rights and interests across various industries.

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