Helsinki (12.08.2013 - Heikki Jokinen) Inside few days the Metso engineering group has announced to cut in Finland 750 jobs and the Lemminkäinen construction group 250 jobs. Both are working also outside Finland.
Trade unions were flabbergasted about the planned redundancies in Metso group, where the cuts would mainly hit the units serving paper and pulp industry.
Pertti Porokari, chairperson of the Union of Professional Engineers in Finland UIL was shocked about the number planned staff reductions. "Redundancy is practically free in Finland. If looking only for euros, saving money here is seemingly easier."
Porokari realise the problems of paper industry, but now the Metso management should see the product development in a new way. "Chinese have learned to copy the existing Metso products, but now we need new top products. Instead of looking at cheapest country for redundancies, which is Finland, it is worth to remember that the best product planners of Metso are here."
Riku Aalto, chairperson of Metalworkets' Union sees the number of possible redundancies really big. He says, however, that 750 lay-offs is the goal of the company, not necessary the final number. The mandatory company co-operation negotiations might influence the result.
Aalto reminds that Metso did already cut 150 jobs earlier this year. Then the company was trying to pay extra dividend to the owners. "Then it appeared to be that they had a lot of money, now situation seems to have changed."
What is the role of state as an owner?
It is now completely wrong time to cut staff in the branch, comments Antti Rinne, the chairperson of Trade Union Pro. "Last week there was news how trust is returning for the European economy. We can hope that export might be slowly recovering."
"Now we would need patience instead of fixing the short time stock market value. Why do they not hold on the competent and engaged Finnish staff in this situation? The management of Metso seems not to be ready to fight for the new rise of their central business area."
Pro director Markku Palokangas asks the role of the state, as it owns 11 per cent of Metso. "State companies are now the first ones to navigate Finland to the rocks. Redundancies are targeted mainly in Finland. There is no willingness nor in the Finnish parliament neither government to get involved with as an owner."
The Finnish-Swedish parquet floor producer Karelia-Upofloor also announced to close down their factory in Kuopio and cut the jobs in Tuupovaara. The production is moved to Sweden.
The chairman of the Wood and Allied Workers' Union, Sakari Lepola stresses that one hour of work is cheaper in Finland than in Sweden. To move production to a country with higher costs proves that the labour costs in Finland are not too high.
"It is a matter whether the owner is engaged with his own country. The Swedish capital seems still to have fatherland, unlike Finnish. Here not even the companies where state has a significant share of ownership do not care about the interests of Finns", Lepola says.
"If the attitude of the companies do not change, it is useless to imagine that only workers will be flexible in the coming collective bargaining negotiations."