Perlos employees stage walkout to protest planned closure

State promises rapid action to help Joensuu region

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Angered and depressed employees of the components manuafcturer Perlos walked off their jobs at the factories in Joensuu and Kontiolahti on Tuesday. The walkout began spontaneously, before shop stewards had managed to agree on an official decision to protest massive job cuts announced on Monday.
      Meanwhile, there have been promises of state aid to help alleviate the problems caused by the prospective loss of more than 1,000 jobs in the North Karelia.
      Eero Timonen, head shop steward representing Perlos office workers, said that the walkout was scheduled to begin at noon, but people began leaving their jobs two hours earlier.
      Pentti Hartikainen, shop steward for factory workers, noted that in a difficult situation, industrial peace cannot be maintained.
      Perlos feels that the walkout was illegal, and is considering bringing the case before the Labour Court.
     
The protest action, which is scheduled to end by Friday morning, involves all of the more than 1,200 Perlos employees. Some workers may already show up for the Thursday evening shift.
      Negotiations on job cuts, required by co-determination legislation, begin on Monday. Employees have been told that the first of the actual job cuts could take effect in September.
     
State officials are looking into ways of easing the impact of the measures. Anssi Paasivirta of the Ministry of Trade and Industry says that the phase of unemployment of anyone should not be allowed to stretch out too long, because once established, it is difficult to get out of a spiral of unemployment.
      The state has EUR 30 million, administered by three ministries, earmarked for the alleviation of harm caused by rapid structural change. Proposals for distribution of the money will be put forward by late January and early February.
      Paasivirta feels that it is important to reinforce sectors that are in a positive phase of development. He says that the state also needs to look into ways to help utilise the buildings that are being left behind by Perlos.
     
The company itself has promised to help bring about positive outcomes.
      Paasivirta says that the ministry was confidentially informed about plans to shut down the factories already last week, and that discussions have been fruitful in other ways as well.
      Help is to be given in increasing retraining, and support for creating new jobs. State funds will be available for this, if necessary. There is also money available in the European Union’s structural funds.
     
Joensuu Mayor Juhani Meriläinen estimates that the wave of job cuts could lead to a gap of EUR three million in the city’s tax revenue in 2008. Drafting the city’s budget for 2009 could prove especially difficult.
      The difficulties are equally serious for Kontiolahti.
      "The situation brings new nuances into the debate on municipal mergers", Meriläinen noted.
     
The threat of mass job cuts at Perlos was taken up on Tuesday during debate on a supplementary budget.
      Finance Minister Eero Heinäluoma (SDP) said that the government will do "all it can" to help the Joensuu region. The area is to be declared a "structural change zone", which allows for the allocation of state funding.
      The current budget has EUR 30 million set aside for helping communities affected by structural change, and this money can be directed at the Joensuu area. Heinäluoma says that the government is now waiting for proposals from North Karelia.
      With money already available, the Minister of Finance does not see a need for drafting a supplementary budget over the Perlos issue.
      Parliamentarians of both government and opposition parties praised the government’s rapid reaction to the Perlos situation. However, Toimi Kankaanniemi (Christ. Dem.) Suspected that the planned EUR 30 million would not be enough.
      Kimmo Sasi (Nat. Coalition Party) accused the government of not supporting business. He noted that a large part of Finland’s technology industry has left Finland while the present government has been in power.


Previously in HS International Edition:
  Perlos plans to shut down manufacturing in Finland - 1,200 jobs to go (16.1.2007)

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