In January 1999, companies in the Finnish food industry announced restructuring which will lead to nearly 1,000 redundancies. Employers say that the job losses are motivated by profit expectations, market changes and intensified competition. The Food Workers' Union demands cancellation of the plans.
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In January 1999, companies in the Finnish food industry announced restructuring which will lead to nearly 1,000 redundancies. Employers say that the job losses are motivated by profit expectations, market changes and intensified competition. The Food Workers' Union demands cancellation of the plans.
Finland's agriculture and food industry has been undergoing a drastic restructuring process during the 1990s. Participation in the EU internal market has increased competition in the sector and underlined the importance of cost effectiveness. The subsidy granted for the transition period to EU membership will end in 1999, and independent operations will need to be competitive. The latest changes in the markets - in Russian exports, for example - have influenced operating conditions in the food sector. Employers consider that in order to meet shareholders' profit expectations amid the rapid market changes that characterise the sector, companies' cost structures must be adapted to a lower level than at present. Furthermore, they state that cost savings can be achieved by simplifying organisational structures and by making redundancies. It is in this context that in January 1999, the companies in the industry announced job losses affecting nearly 1,000 people in all.
According to the Finnish Food Workers' Union (Suomen Elintarviketyöläisten Liitto, SEL), most of the food companies are making critical mistakes by competing among themselves for the small domestic markets, for raw materials, and on low prices. SEL accuses employers of trying to pay for their mistakes at the employees' expense. It states that management has found no methods of addressing the sector's problems other than cutting labour costs, although at the same time many of the Finnish managers who have become millionaires from share options come from the food industry (FI9804158F).
"Food industry employees have been forced to be flexible in every way possible, says SEL, and the successful functioning of many companies is ensured only through overtime and overburdening employees, resulting in increased stress at work (FI9811182F). SEL states that it is prepared to engage in all kinds of cooperation with interests throughout the entire food production chain, so that Finnish food can be eaten in the future and with continued consumer confidence. The union does not accept the redundancies announced, and demands that the plans concerning them should be cancelled."
Eurofound anbefaler, at denne publikation citeres på følgende måde.
Eurofound (1999), Nearly 1,000 redundancies in the food industry, article.
