Simultaneous decisions on restrictions and support are needed, as well as better consideration of interveners in different support schemes. The threat of labor shortages increases the difficulties in the restaurant and event industry when business continuity is being tested.
Government a coronary ministerial working group said on Friday it was preparing a series of new compensations for businesses and entrepreneurs following pandemic closure measures.
The support package was compiled by the Minister of Economic Affairs Mika Lintilä (average) estimates between € 200 and € 250 million, depending on whether the restaurant closure materializes. Compensation and subsidies will be paid for closure and restraint operations until the end of February at the latest.
Helsinki Representatives of the companies interviewed by Sanomat consider the information on the new aid to be positive, although it is hoped that the restriction and aid decisions will come at the same time.
The layoff system, which is rare in Europe, is being hailed as a form of support that many other countries have only had to develop during the interest rate crisis. However, its problem is, for example, the long negotiation times caused by the co-operation negotiations.
On the restaurant and event side, many will be left out of the support system.
The future of the summer festivals will also be decided in the coming weeks, as many of the main performers will decide whether it will go on a European tour at all.
Restaurant company Noho’s CEO Aku Vikström criticizes the government for deciding on restrictions and compensation at different times.
“STM [sosiaali- ja terveysministeriö], which is at the forefront of the crisis, sees it from its own perspective, which is probably right for them. But when they are not in contact with the Ministry of Employment and the Economy [työ- ja elinkeinoministeriö], restrictions and compensation do not go hand in hand. ”
According to Vikström, in Denmark and Norway, compensation is better reported at the same time in connection with restriction notifications.
“In the low-wage sectors, people have been really hard at layoffs,” says Aku Vikström, CEO of Noho.
In Finland is an exceptional redundancy scheme from a European point of view, where employers can lay off their employees so that they receive mainly earnings – related compensation from the state.
Finland is so accustomed to state support that many people do not even think of it as corona support, although it is a rarity in EU countries.
On the other hand, during the corona pandemic, many countries have developed forms of support similar to layoffs, the terms of which may be even more generous than in Finland.
For example In Denmark and Norway, the state pays 80-90 percent of the wages paid to employees for downtime if the employer agrees not to lay off employees, Vikström says.
The subsidies received in this way are better than the fact that in Finland the employer first had a 14-day consultation period before the layoffs began.In addition, the compensation paid to employees in Norway and Denmark is higher than the earnings-related compensation paid by Finland or paid by Kela, Vikström compares.
In addition, employees have had a five-day grace period before new decisions are made before members of the unemployment fund have access to earnings-related daily allowance.
Vikström says, however, that it is opposed in principle to state support for companies.
But in situations where, in the name of the common good, the preconditions for the operation of some industries have to be intervened, reasonable compensation must also be provided, he reminds.
According to Vikström, Noho has received EUR 3.8 million in compensation from the state, excluding subsidies paid to employees for layoffs.
EUR 2.9 million has been received from Norway and EUR 2.5 million from Denmark.
In 2020, Noho made a loss of 20 million euros. Last year’s result is not yet public.
Vikström points out that large companies in particular suffer from cut-off costs that limit subsidies.
Noho has 200 leases that place a strain on restaurants just as much as smaller restaurant entrepreneurs.
Finnish Entrepreneurs Association already on Friday night, praised the government for its support measures.
However, the additional wishes were to shorten the collective redundancy and layoff times.
“It is essential that the process takes weeks, which is too much when the restrictions are put on days of notice,” the CEO of Suomen Yrittäjät Mikael Pentikäinen underline.
“It is unreasonable to restrict business but not provide the means to adapt to it,” says Mikael Pentikäinen, CEO of Finnish Entrepreneurs.
Finland Entrepreneur leader Janne Makkula praises the functioning of the Finnish layoff system in the crisis.
“It’s a gem compared to many other countries. There has been no need to build a system for a pandemic. It brings flexibility to just such unexpected situations. ”
According to Makkula, problems arise because the co-operation rules require long negotiation times.
The co-operation rules already apply to companies with 20 employees in Finland, while the EU directive limits the number of employees to 50.
The co-operation process is primarily designed for redundancies, but in Finland it also applies to layoffs, Makkula points out.
“Especially in situations where restrictions come quickly, the negotiation time is too long.”
Therefore, Entrepreneurs are pushing for a reduction in the notice period from 14 days to five.
In this case, the state should ensure that the employee’s loss of earnings is compensated, even if the notice period is shortened.
“I would not like to see the situation as a confrontation between employees and the employer, when the state restricts the possibility of restricting the industry,” says Makkula, about reducing the time required for the employer to reduce the employee’s earnings. In that case, compensation for the loss to the employee should come from the state.
Ticketing company Ticket CEO Mirva Merimaa estimates that Tiketti has received relatively good subsidies.
“We have lost about four million euros in turnover in two years and about 800,000 euros in subsidies.”
One hundred thousand euros of these subsidies are money received from Business Finland for investments.
In 2020, Tiketti made a loss of 350,000 euros, but in 2021 the company was profitable.
“The best support is to allow it to work,” says Mirva Merimaa, CEO of Tiketti.
The beginning of this year has been severely unprofitable for Tiketti. Five of the 35 employees have either left for another field or studied, Merimaa says.
Training new employees is also a burden for the entrepreneur. “This is a competition activity. No one will be ready to become a ticketing professional. ”
Government According to Mirva Merimaa, the promises of new subsidies now made are good, although she hopes that both event guarantees and severance pay will be further developed in the Ministry of Employment and the Economy.
“The transaction guarantee should be extended to all transactions and better ensure that it flows to the subcontracting chain as well.”
“Closure compensation should also be directed to closed operations, not just facilities.”
The interveners in the support system are, on the one hand, the largest event organizers and, on the other hand, various sole proprietors and artists, Mirva Merimaa estimates.
Managing director Juhani Merimaa Helsinki Rock & Roll Oy and Vantaa Festivaalit Oy says the rock club Tavastia has received subsidies of about 1.3 million euros in two years.
“We have lost well over 20 million turnover in Tavastia. We are at a loss after two years. Fortunately, it was Ismo Alangon gigs. ”
According to Juhani Merimaa, there are already difficulties in retaining employees in the event industry.
Vantaa Festivals, which organizes Ruisrock, for example, has received festival subsidies to the extent that the festival company is “about zero or slightly negative” after two corona years. The subsidies have helped significantly here, Merimaa says.
Merimaa says summer festivals are facing exciting weeks ahead. By the beginning of February, many big bands and artists will decide if they will go on European tours at all.
Negative decisions can lead to many problems at festivals if the nature of the festival changes, and it could lead to ticket cancellations, Merimaa says.
In this case, the organizers must decide whether to hold some kind of smaller-scale festivals in order to keep the professional workforce and maintain public interest in the events.
Hevijätti Iron Maiden is expected to visit Finland in June. The fate of its European tour will be decided soon. Rockfest is bringing the band to Hyvinkää.
Layoffs with it, many event professionals have already sought new fields.
“There have already been cancellations in February, when there is no labor available.”
For example, several security guards did not attend the Finland-Ukraine football match, even though they had been hired, Merimaa says.
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“I’ve already sold the boat and the boat, and now I’m going to the right job.”
According to Juhani Merimaa, various sole proprietors and subcontractors in the cultural sector in particular have remained victims of the pandemic.
Although wage subsidies are also given to sole proprietors, it is only available if it is possible to first take out a loan from a bank to pay for one’s own salary, Merimaa reminds.
Merimaa gives a descriptive example of what a sole proprietor had said when he left the industry for other jobs, even though Merimaa had tried different ways to paint that person a rose future in the industry.
“I’ve already sold the boat and the crap, and now I’m going to the right jobs,” he had told Merimaa.
“I asked what those real jobs are. ‘Everything but what you offer,’ he replied. “
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