Two new agencies in Finland, the Economic Centers and the Keha Center, have launched significant employer negotiations shortly after their establishment due to substantial financial adjustment needs that may result in layoffs.
In Finland, the newly established Economic Centers and the Keha Center have commenced major employer negotiations just weeks into their operation, citing urgent financial adjustment needs. According to Keha's announcement, these adjustments could lead to significant staffing reductions, with estimates suggesting up to 296 full-time equivalent positions may be cut. This development comes as the agencies face financial constraints that necessitate permanent changes to their operations in order to meet budgetary requirements for 2027.
The Economic Centers were created from the disbanded ELY Centers and began their operations at the start of the year. Despite having only recently been formed, they are already facing the harsh reality of needing to streamline their workforce. Currently employing around 2,600 staff members, with approximately 2,100 on operational funding, the implications of having to reduce personnel so soon after their inception raises questions about the strategic planning and financial sustainability of these new entities.
The announcement of prospective layoffs has drawn criticism from the Trade Union for Public Sector Professionals (JUKO), particularly from Minna Salminen, who deems it 'very grotesque' to implement such drastic changes just two months after the agencies' launch. This situation highlights the potential instability and challenges that newly formed public-sector organizations may encounter when confronted with immediate financial pressures, calling into question the feasibility of their operational models in the long term.
