ABSTRACT
This chapter discusses the early steps towards a modern welfare state, from the perspective of the employers. The Nordic countries are often considered in ‘a league of their own’ when discussing welfare states. Although the ‘modern,’ universal, primarily publicly funded welfare system appeared somewhat later in Finland than in the other Nordic countries, the country caught up rapidly in the post-war period. Although the modern welfare state is mainly a post-World War II phenomenon, some legislative initiatives were taken in the interwar period. Owners of big business often developed private welfare programs for their own employees. Due to weak public finances, many municipalities were granted extensive exemptions from the new legal requirements. The shifts in power balance in the political system also influenced employer attitudes; fears of more far-reaching reforms due to the activities of left-wing parties made them become more conciliatory towards ‘moderate’ demands.
