Finnish Prime Minister Antti Rinne resigned on Tuesday and handed his resignation at a meeting with President Sauli Niinisto.
Rinne’s resignation came after one of his coalition partners said they no longer had confidence in him.
The Centre Party, one of five parties in the coalition he formed in June, expressed doubts over the Social Democratic leader in the wake of a recent labour market dispute involving the state-owned postal service Posti.
The transfer of 700 workers to lower-paid contracts triggered a 17-day strike in November.
The minister in charge of state-owned firms, Sirpa Paatero of the Social Democrats, resigned in November after it emerged, she had failed to block the outsourcing.