Kone CEO: Repercussions of strike by office workers will spread far beyond borders of Finland

Juhani Salonius

Matti Alahuhta

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As reported on Tuesday, a strike by office workers affiliated with the Union of Salaried Employees (TU) began on Monday morning at seven companies in the metal and technology industries after last-ditch efforts to avert the strike had failed on Sunday.
      On Monday night, steel manufacturer Ovako reached an independent agreement in an effort to secure its deliveries to the European automotive industry.
     
The strike of the nearly 3,000 office workers at the remaining six companies, comprising Aker Yards, Boliden, Luvata, Outokumpu, Rautaruukki, and Wärtsilä, has been estimated to be considerably hampering the production of these companies over this week.
      National Conciliator Juhani Salonius is to meet the parties of the conflict in the afternoon in order to negotiate the level and form of pay increases.
     
The TU has threatened to expand its strike on October 31st, if no agreement is reached before that date. Some 40 new enterprises, including for example mobile phone giant Nokia, lift and escalator manufacturer Kone, and the Metso and ABB engineering groups, and more than 4,000 office workers would join the industrial action at that point.
      The strike could be further expanded after that. A total of about 30,000 members of TU work in the technology industry.
     
The repercussions of a strike for a company extend far beyond the borders of the country. However, globalisation may help the company to protect itself better, says Matti Alahuhta, the President and CEO of the Finnish elevator corporation Kone.
      "A modern global company is like a network, which apart from its own offices and personnel also comprises its subcontractors and partners. Moreover, the organisation of the company consists of various tasks, which will be done in those parts of the world where the cost-effectiveness and quality of each task can be best secured", argues Alahuhta.
     
While not wishing to threaten the Finnish office workers, Alahuhta says that the Finnish operations and employees of Kone must be seen as a part of the global network, each with a role of their own as producers of goods and services.
      "If the strike continues and Kone becomes involved in the second stage of this industrial action, we will have to primarily think of our customers. In other words, we will have to compensate for the losses in Finland by doing the work elsewhere. In this business, it is often impossible to win back a lost customer", Alahuhta notes.
      "However, the Finnish technology industry with all its subcontractors continues to be a major employer in Finland. It would be regrettable if this kind of industrial action, clearly originating in the political interests of certain organisations, would put the development of the network of Finnish technology subcontractors at risk", Alahuhta concluded.
     
The situation at Kone is fairly good, according to Alahuhta. He does not believe that the company would be among the most vulnerable of those affected.
      Only 40 employees of the 1,500 Kone personnel in Finland are members of the TU, who would join the strike at the end of October if the efforts to end the labour dispute fail prior to that.
      The total number of the Kone personnel amounts to 31,000 employees worldwide.


Previously in HS International Edition:
  Strike by office workers at seven companies hits core of technology industry (23.10.2007)

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