News

Helsinki (07.04.2009) It has now become very apparent that the graphics industry in Finland has no real alternative other than a significant structural change. Overcapacity had already caused serious problems for many companies several years prior to the current recession, as the common practise was to compete by lowering prices. And consequently profits took a dip.



Now with demand rapidly slowing, due to the recession, the overcapacity problem has become even more aggravated.



A new study, commissioned by the Media Union, offers concrete figures on how serious the situation is. The study covers 373 small and medium-size companies, and 44 of these face "a high bankruptcy risk" and 99 "a rather significant bankruptcy risk". The situation is worst at plants that use mainly sheet-fed printing presses.



"Graphic industry companies have a need to invest in the training of their personnel and in innovation", Irene Hämäläinen, the secretary of the union concludes.



"Threat mechanisms should not be used against employees. Instead of lowering wages and threatening lay-offs, companies should seriously consider offering their employees well-planned training."



Low value-added production will be transferred to low-cost countries, experts believe. But, high value-added production, demanding high professional and vocational skills from employees, will stay in Finland.



The Media Union will address and examine the study and structural change issues during its Congress which will be held from 8 -10 May in Tampere.



"This study forces the union to analyse the future of the whole graphics industry. In the Congress we shall begin to develop our strategy that sets out to determine practical means for securing employment in our industry."



The study was made by the Business and Innovation Development Unit of the Turku School of Economics.

Trade Union News from Finland

www.artto.kaapeli.fi/unions

Juhani Artto

juhani.artto@kaapeli.fi