The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Wood And Paper Materials Manufacture Of Paper And Paper Products 17 - Manufacture of paper and paper products
267 jobs Number of planned job losses
Announcement Date
6 April 2006
Employment effect (start)
Foreseen end date
Description
According to Helsingin Sanomat 17 June 2006, negotiations on personnel reduction at the paper manufacturer Myllykoski Paper have been concluded. A cut of 92 permanently employed persons has been agreed upon. When reducing the number of personnel, so-called "soft" ways will be applied, meaning for example retirement arrangements.
Myllykoski Paper in Anjalankoski in the Southeast of Finland started personnel negotiations on Tuesday 18 April 2006, at first announcing that altogether 310 jobs would be cut. These cuts were aiming at cost cuts of 15 per cent. Pension arrangements, layoffs and outsourcing of operations were to affect more than one third of the companys personnel in Finland. The personnel negotiations concerned 110 blue-collar workers and 20 white-collar workers. The greatest single issue in the talks regarded the cancellation of the service contract on steam and electricity production with the company Vamy. Vamy is a power plant owned by the electric utility Vattenfall, whose staff of about 20 people work for Myllykoski Paper.
In addition to this, the company is looking for an external partner, which would take on 175 employees who are currently working for Myllykoski in maintenance and planning. In addition to the personnel negotiations, the new maintenance model will be finalized with the choice of a partner after Midsummer.
According to Helsingin Sanomat 6 April 2006, head shop steward Timo Byman said that he was disappointed and frustrated. Two years ago 50 jobs were cut, and we went through the whole company with a fine-toothed comb. Byman expected difficult talks, as 90 people were to be cut from the core process of the factory without cutting back on activities. As for the outsourcing of maintenance, Byman said that experience has shown that things work best when the people who use the machines and maintenance personnel are employed by the factory. He felt that it is unfair for Myllykoski Paper to compare productivity of the Anjalankoski mill with the company's Lang paper mill in Germany. I feel that a comparison of productivity should involve identical machines and identical products. He notes, for instance, that the raw material at the Lang factory is recycled paper, which requires less work than paper made directly out of wood fibre.
The Björnberg family holds the majority of the Myllykoski Paper shares. The company is not listed on the stock exchange. The forest industry company M-real, which is part of the Metsäliitto Group, has a minority holding. Metsäliitto is responsible for procuring wood for Myllykoski Paper.
Myllykoski Paper employs 790 people. The factory puts out 200,000 tonnes of coated, and 320,000 tonnes of uncoated magazine paper a year. The mill has three paper machines.
Sources
17 June 2006: Helsingin Sanomat
19 April 2006: Helsingin Sanomat
Citation
Eurofound (2006), Myllykoski Paperi, Outsourcing in Finland, factsheet number 63283, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/63283.
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