Labour Minister Filatov wants companies to share human cost of downsizing

Finland's Minister of Labour Tarja Filatov (SDP) wants large, economically sound companies, which are important employers in communities where they are located, to help in the financing of social and educational services to alleviate the impact of extensive job cuts.
      In Filatov's view, large corporations should set up capital investment companies to deal with the aftermath of mass layoffs. Such enterprises could help workers who have lost their jobs with material assistance, retraining, and finding new work.
     
Corporate involvement in alleviating the impact of downsizing would be needed in Kuusankoski, where the paper manufacturer UPM is shedding nearly 1,200 jobs. The company is closing down its Voikkaa paper mill, and is shutting down one production line at its Kymi plant.
      The planned redundancies in Kuusankoski are part of an extensive cost-cutting scheme by UPM that includes the elimination of nearly 3,000 jobs.
      On Tuesday, the government, which is working on the framework for the national budgets for the coming years, is to be presented with proposals from a working group on ways to alleviate the impact of massive job cuts.
      The focus of the proposal is to improve the plight of those who are affected by sudden changes in employment status. This year's budget already has EUR 30 million earmarked for the purpose, and if it runs out, more is to be provided automatically.
      The government set up the working group as soon as UPM's massive downsizing plan was made public.
      Companies implementing job cuts with significant local impact include UPM in Kuusankoski, as well as mobile phone components manufacturer Foxconn in Lahti, and Perlos in Joensuu.
     
Labour Minister Filatov sees discretionary aid provided by the state and local authorities as important factors in mitigating the situation in Kuusankoski. She says that sufficient amounts of discretionary funds should be channelled into investments, if it viable investments in the area prove to be feasible.
      "In the first phase it is most important to secure the services of occupational health care for those who lost their jobs. Before anything else is done, the shock of the event must be brought under control", Filatov points out.


Previously in HS International Edition:
  UPM´s Jussi Pesonen´s earnings rose massively last year (14.3.2006)
  Paper mill closure major blow to Kuusankoski (10.3.2006)
  State representatives to discuss job cuts with UPM management (10.3.2006)
  Paper manufacturer UPM cutting thousands of jobs in Finland (9.3.2006)
  Foxconn to shut down almost completely production it bought from Eimo in Finland (8.3.2006)
  More, faster, cheaper (19.2.2006)
  Perlos to cut again 600 jobs in Finland (7.2.2006)