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Finnish company Wärtsilä to close plant in Netherlands

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20 December, 2001The IMF's Dutch affiliate has requested an investigation as to the possible violation of OECD Guildelines on Multinational Companies.

NETHERLANDS: The FNV and its affiliate FNV Bondgenoten have informed the IMF about their request to the Dutch National Contact Point for the OECD Guidelines on Multinational Companies to investigate the announced closure by the Finnish engineering multinational Wärtsilä of its subsidiary in Zwolle, Netherlands.
The union believes that Wärtsilä has violated Paragraph 6 of the chapter on Employment and Industrial Relations of the OECD Guidelines on Multinational Companies by taking the final decision to close down its factory in Zwolle before giving notice not only to employee representatives but also to relevant government authorities.
As the company is considering to transfer the bulk of its Zwolle production activities to another subsidiary in Trieste, Italy, the FNV has suggested that the Dutch National Contact Point involve the Italian Contact Point in its investigation.
The closure of the Zwolle factory will mean the direct loss of 700 jobs, as well as some 2,000 others in supplier firms. Although the plant had been making losses for several years, it was expected to make a profit this year.