Kari Hakari starts new role with layoffs and budget crisis

Kari Hakari began work this week as chief executive of the Kymenlaakso wellbeing services county, immediately facing negotiations over possible large-scale redundancies and a budget deficit of around 100 million euros, Yle reports.

Hakari’s first day, August 24, included the launch of statutory cooperation negotiations. The required personnel savings of 20 million euros correspond mathematically to 280 person-years.

On his second day, he attended the first meeting of a working group preparing for an assessment procedure. A wellbeing services county may be placed under state assessment if its finances remain in deficit for a prolonged period.

“I’m still breathing,” Hakari said on his third day in the job.

A familiar crisis from a new position

Hakari, 61, was elected chief executive by the regional council in June. Three candidates stood in the vote, and Hakari won more than half the votes in the first round.

He previously worked at Sitra on developing social and healthcare services. Before that, he led the official preparations for Finland’s social and healthcare reform and headed the Ministry of Social Affairs and Health department responsible for guiding the wellbeing services counties.

Hakari said some ministry officials involved in the assessment procedure are old acquaintances, which could make discussions easier. But he has also had to adjust to representing the wellbeing services county rather than the ministry.

Before his Yle interview, he had reviewed the Ministry of Social Affairs and Health’s comments on a cooperation agreement involving HUS and wellbeing services counties in southern Finland.

“The ministry’s comments could have been written by me, but now I have to respond to them and say that this is not how we operate,” he said.

‘A dream job’ closer to everyday life

Hakari said he considers the position his dream job because it brings him closer to people’s everyday lives. He had applied for positions at other wellbeing services counties before being chosen in Kymenlaakso.

He said he has learned to tolerate unfinished work and lengthy processes during his career, although impatience sometimes returns. At his cottage, he said, he focuses on relaxing rather than dealing with a constant backlog of tasks.

He nevertheless wants things to be completed and does not like living with matters left unfinished. On Wednesday, he approved workplace recruitment permits for the first time in his career. He found the system easy to use, despite it being new to him.

Faith in the wellbeing services county model

Wellbeing services counties across Finland are struggling with similar financial problems. Hakari considers the funding model a major issue and described Kymenlaakso as falling between the cracks.

In his view, an even bigger problem is that administrative structures have been reformed while services should already have been redesigned to meet the needs of an ageing population.

“In the middle of Finland’s biggest administrative reform, the money ran out and the population, so to speak, aged in our hands,” he said.

Despite the difficulties, Hakari said he still believes in the wellbeing services county model and has strong faith in the future.

“Everything will eventually turn out well,” he said.

Hakari holds a doctorate in administrative sciences. He lives in Helsinki and Kotka with his wife and has three adult children. His interests include spending time at a cottage, travel, culture, exercise and reading.