The economic boom at the end of the 1980s lead for example to bank strike. Because the money transfers were not possible during the strike, Vallox had to make special arrangements in order to ensure the payment of salaries. The former CEO of Vallox, Rauno Mäkelä, looks back at this special event.
Before the recession in the early 1990s, Finland experienced a strong economic boom. Also the construction sector was growing strongly. The banking sector grew as well, foreign currency loans became available for companies and, of course, the employees and employers were arguing about the size of contract wage increases. This happened also in the banking sector, where the agreement in the salary issues was not reached.
The bank strike began.
Before the actual strike there was a vast embargo in money transmissions and the payments from a bank to another were interrupted.
For Vallox, this meant that staff’s salaries could no longer be paid in the case emplyee´s account was in another bank. It was necessary to use cash.
Vallox had a bank account in Suomen Yhdyspankki (SYP), but also in Postipankki. SYP’s account was in active use and the most of cash flow was transferred via this account.
The bank strike started soon after the money embargo. Before that we needed to make sure that we had enough money to pay the salaries. The local bank office ordered the cash from the Bank of Finland. An incomprehensible amount of notes were delivered by road during few days´ time.
Postipankki was not attending the strike, so the cash could be transferred there. However, the transfer was required to take place in person. First, I went to SYP to draw money. That happened safely in the back room out of sight of others. I was handed a briefcase full of cash. Then I drove to Postipankki.
The banking hall in Postipankki was full of customers and the lively conversation filled the room. I took my place in the queue and when it came to my turn, the clerk asked:
”How can I help you?”
“I would like to deposit money”, I said.
”How much?”
”Well, two million marks”
”Oh well…”, said the clerk disconcerted.
I lifted my briefcase to the counter and piled up the notes of 1000 marks to the desk. There was exactly two million marks. The crowd in the bank hall had gone silent to watch us…
By using cash, we were able to pay the salaries during the 5-week strike.