Health sector problems in Japan and Finland are quite similar, seen from a union viewpoint

”Masanobu Furukawa from UA Zensen told delegates ( to the 2nd UNICARE World Conference in Rome in February 2019 ) that with the exploding elderly population in Japan, the need for collective bargaining agreements in the health sector is dire. Overcrowded care homes, burnout, stress and dangerous conditions are rife and unions are looking for solutions. The relationships built up through collective bargaining are a way to make sure that workers lives are improved.”


There is a serious situation in many private profit-based retirement homes and other social services in Finland as well. Here, under-staffing creates the kind of problems that also the Japanese health care professionals recognise. Strict minimum conditions through legislation combined with legally binding collective agreements is a solution.


In countries with well developed public social and health services such as Finland it makes no sense to outsource them to private profit-hungry multinationals like is being done here. In addition, the tax payers carry the costs and these huge companies themselves avoid taxes through internal expensive loan arrangements and ’tax planning’ that usually involves tax paradises.

Revelations of poor treatment of seniors at investor owned care homes will put end to Finland’s health and social sector privatisation drive?

Helsinki Finland the House of Parliament lit up on a winter evening in January 2019. On the right also a statue of former President Kyösti Kallio.
Finland’s House of Parliament in central Helsinki

Today, the greed of global investors is showing a particularly ugly face in Finland’s social sector. One after another, private care homes are exposed for mishandling their senior customers. Many of these institutions are owned and operated by large multinationals. Will this be a game changer also in parliament when it comes to health and social care privatisation?

Customers are left in their beds without care, soggy diapers are used instead of toilet visits, showers once a week. This has been the stark reality in some institutions when authorities have inspected them. Profits have walked over care and compassion.

Health and social care professionals have sounded alarm bells already for some time. Staffing requirements have been set on insufficient levels. The private care companies have cut down on full time professionals and favoured less costly employees. This combination has now proved to lead to unethical and in some cases to even dangerous results.

Both the state and the municipalities and counties have been at fault. Their aim has been to cut costs and save almost at any price, to keep the taxation of those better off as low as possible.

Today we saw the CEO of a large British investment fund owned service provider – the one which was hung out first – resigning. In 2017 she had an income of over 5 million Euros and over the last ten years she has added up to 12 millions. So, no economic worries there.

Te most urgent thing is that the conditions in these ’homes’ must be brought to correct levels. Both the state and the municipalities have to see to this. The institutions must be forced to employ sufficient numbers of qualified personnel. Unless there is a fast improvement, the public sector is left with no other alternative than to take over these services. Maybe it would not be so bad.

Social services used to be a subject of national pride, but now this Nordic welfare state is deteriorating fast. There is an obsession to privatise. This unites a neo-liberal ideology with corporate greed.

Public services are handed over to profit-driven private corporations. Many are owned by global investment funds. Expensive internal loans from tax havens ensure annual losses in the Finnish operations. As profits are moved abroad little or no taxes need to be paid.

Finland’s business-oriented government is now trying to make a final squeeze to carry through a major privatisation in Finland’s health and social services sectors. Their parliamentary majority, already razor thin, is steadily melting away.

Clearly, also conservative parliamentarians begin to see the folly in supporting these reforms. A few jumped off the band wagon already long ago. They understood that this proposed ’reform’ has nothing to do with increased market competition.

The government has tied its health care privatisation to creating new regional administrative structures in the country. The conservative right wingers get privatisation benefits for their business supporters. The center party’s rural power base is happy over the new regions that they have been yearning for over the years.

With the new revelations showing how profit interests can destroy the quality of care, this power game may still come to an end.

Finland’s large and powerful conservative-liberal newspaper Helsingin Sanomat ran a major article this morning, showing that under-staffing and other problems exist also in children’s day care centers, ran by these private corporations.

There is no doubt about it, in the weeks to come there will be new revelations. What we have seen now may just be the tip of the iceberg.

A new parliament will be elected in April and polls show clear advances for the opposition. The social democrats are predicted to lead the next government. This would mean a different attitude towards public services which the political left traditionally sees as an integral part of the welfare state concept.