A Cautionary Tale
This article examines how the Swedish idea of collective wage-earner funds was received and discussed in Finland in the 1970s and 1980s, especially by the Social Democrats and the trade union movement. The initial proposal entailed profit-sharing with workers and would have made the trade unions co-owners of private enterprise. The Finnish Social Democrats were influenced by the proposal but devised a more moderate idea for company-specific ‘cooperation funds’. The Swedish debate was interpreted in Finland as a cautionary tale of too radical demands causing severe political and labour market conflicts. In negotiations with Finnish employers and bourgeois parties, the idea was further modified into voluntary ‘personnel funds,’ which in effect meant a possibility for personal bonus payments and stock-saving for employees in profitable firms. The outcome was closer to traditional bourgeois and employer ideas of people’s capitalism than to social democratic ideas of ‘economic democracy,’ which had justified the wage-earner fund proposal.