News

Union dues are tax-deductible – but probably not for long

A poll shows that the government's plan to cancel the tax deductibility of union membership fees is deeply unpopular.

The Stopnyt demonstration in Senate Square Helsinki
A demonstration in Helsinki last year opposing government moves to weaken the status of workers and labour unions. Image: Vesa Marttinen / Yle
  • Yle News
  • STT

At the end of June, the right-wing government led by Prime Minister Petteri Orpo (NCP) submitted a bill to Parliament aimed at abolishing the right to deduct union membership dues and unemployment fund fees from taxes.

Opposition politicians and labour leaders have slammed the move, which they say is aimed at diminishing the power of the labour movement by discouraging union membership.

The proposal is almost certain to pass as the four government parties hold a majority of seat in the legislature. However, some members of Finance Minister Riikka Purra's Finns Party have opposed the plan, arguing that it would serve only the interests of big business and high earners.

A survey published on Saturday indicates that the proposal has little public support.

Only about 20 percent of working people support the proposal, according to a poll commissioned by the Federation of Finnish Enterprises (Suomen Yrittäjät).

Two-thirds of respondents oppose the proposal. The strongest support was found among entrepreneurs, and the lowest among employees.

Younger workers may reconsider union membership

One in ten said that the change could lead to them giving up on their union membership.

The greatest impact would be seen among young people. Among working people under the age of 30, 14 percent said the change would affect their union membership.

According to the draft bill, the change would also apply to entrepreneurs, whose association membership fees would be taxed in line with trade union membership dues.

The survey also indicates that membership in trade unions and unemployment funds has decreased.

While in 2022, 76 percent of those with jobs were covered by unemployment funds, that figure has now slipped to 70 percent.

A particularly significant decline has occurred among young adults. Only half of workers under the age of 29 are members of insurance funds, down from 61 percent early last year.

"Worrying" decline in membership

The Federation’s CEO, Mikael Pentikäinen, said this is a concerning trend.

A man with an open-necked white shirt and dark blazer and glasses sits in a TV studio with a serious expression.
Mikael Pentikäinen, CEO of the Federation of Finnish Enterprises (Suomen Yrittäjät) Image: Silja Viitala / Yle

"In terms of security in a changing labour market, it is worrying that membership in unemployment funds seems to have decreased. Membership in unemployment funds guarantees earnings-related security in the event of unemployment," he pointed out in a statement on Saturday.

Trade union membership has also fallen. Just 56 percent of working people belong to unions, while only half of those on company payrolls are members. In 2013, the level of unionisation was 67 percent, according to the Ministry of Employment and the Economy.

According to the survey, the most important reason for joining a union is the desire to receive earnings-related unemployment benefits. The second most important desire is to improve working conditions.

The survey was carried out by Verian Finland, with polled about 1,100 working people in Finland. The margin of error is three percentage points.

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