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11 August, 2005ICEM News release No. 94/2001
The Finnish Government has cancelled the planned sell-off of Kemira, the state-owned chemical and fertiliser group. Following a heavy lobbying and media campaign against the deal by Finnish unions, it became apparent that the Finnish parliament would not have accepted the plan to reduce the state's holding in Kemira from 56% to zero. Faced with a humiliating defeat, the government retreated.
The Finnish unions involved are affiliated at the global level to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
At the end of August, the government reached a deal to sell Kemira to Dynea, which is controlled by the Swedish private equity investment firm Industri Kapital. The idea was to form a major pan-Nordic industrial chemicals group with 16,000 employees around the world. It would also have included SSK, another chemical company controlled by Industri Kapital.
However, an independent analysis commissioned by the Finnish unions revealed that the buyer candidate Dynea was making a loss, had almost no own capital and was heavily indebted. Its owner, Industri Kapital, was in reality based in the tax haven island of Jersey and used complex structures to minimise taxation, despite the official government and European Union policy not to have dealings with such companies.
The Finns contacted Swedish unions, which reported that Industri Kapital was a pure money-maker and did not have any industrial interest. Its philosophy was to buy companies cheaply, "refine" them and then sell them in pieces or list them on the stock exchange at a considerable profit. Dynea shop stewards confirmed that restructuring and job losses had been a feature of the company's operating style in recent years.
In October, the employee representatives of Kemira's European Works Council expressed their concern about the arrangement. This European-wide consultation body encompasses members from Finland, Sweden, Denmark, Belgium and the United Kingdom. The Nordic Kemira unions met at the end of October to discuss future action.
With all this information, five Finnish ICEM affiliates representing Kemira workers launched a concerted media and lobbying campaign against the deal. Television and newspapers were supplied with analysis and details on the buyer candidate. Union leaders, officials and Kemira shop stewards were in constant contact with key members of parliament. Non-governmental organisations and environmental groups were also involved in the campaign. After the parliament's Agricultural Committee declared itself opposed to the deal, criticism grew also in the Finance Committee. Finally the government had to back off and withdraw its proposal.
The Kemira unions were obviously happy about the decision. The Chemical Workers' Union said that financial aspects, notably Dynea's heavy debt load and Industri Kapital's use of tax havens, were central elements in the case against the proposed deal. However, the union President Timo Valittu stated, unions are not against change as such. Kemira has gone through a major programme of restructuring, reorganisation and international expansion. It is obvious that this trend will continue in the chemical industries, and more viable partners will be sought for Kemira, too.
Kemira's 10,000 employees produce industrial chemicals, fertilisers and paints in more than 30 countries around the world.
The Finnish unions involved are affiliated at the global level to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM).
At the end of August, the government reached a deal to sell Kemira to Dynea, which is controlled by the Swedish private equity investment firm Industri Kapital. The idea was to form a major pan-Nordic industrial chemicals group with 16,000 employees around the world. It would also have included SSK, another chemical company controlled by Industri Kapital.
However, an independent analysis commissioned by the Finnish unions revealed that the buyer candidate Dynea was making a loss, had almost no own capital and was heavily indebted. Its owner, Industri Kapital, was in reality based in the tax haven island of Jersey and used complex structures to minimise taxation, despite the official government and European Union policy not to have dealings with such companies.
The Finns contacted Swedish unions, which reported that Industri Kapital was a pure money-maker and did not have any industrial interest. Its philosophy was to buy companies cheaply, "refine" them and then sell them in pieces or list them on the stock exchange at a considerable profit. Dynea shop stewards confirmed that restructuring and job losses had been a feature of the company's operating style in recent years.
In October, the employee representatives of Kemira's European Works Council expressed their concern about the arrangement. This European-wide consultation body encompasses members from Finland, Sweden, Denmark, Belgium and the United Kingdom. The Nordic Kemira unions met at the end of October to discuss future action.
With all this information, five Finnish ICEM affiliates representing Kemira workers launched a concerted media and lobbying campaign against the deal. Television and newspapers were supplied with analysis and details on the buyer candidate. Union leaders, officials and Kemira shop stewards were in constant contact with key members of parliament. Non-governmental organisations and environmental groups were also involved in the campaign. After the parliament's Agricultural Committee declared itself opposed to the deal, criticism grew also in the Finance Committee. Finally the government had to back off and withdraw its proposal.
The Kemira unions were obviously happy about the decision. The Chemical Workers' Union said that financial aspects, notably Dynea's heavy debt load and Industri Kapital's use of tax havens, were central elements in the case against the proposed deal. However, the union President Timo Valittu stated, unions are not against change as such. Kemira has gone through a major programme of restructuring, reorganisation and international expansion. It is obvious that this trend will continue in the chemical industries, and more viable partners will be sought for Kemira, too.
Kemira's 10,000 employees produce industrial chemicals, fertilisers and paints in more than 30 countries around the world.