Union slams sending jobs to Estonia

  • 1999-11-18
HELSINKI (BNS) - Auli Korhonen, head of the Finnish textile and
garment industry workers' trade union Teva, has raked the garment
manufacturer PTA Group for its decision to shut a production facility
in Kuopio, Finland, and subcontract work to the Klementi sewing
factory in Estonia, the Finnish news agency STT reports.

Korhonen said it is a depressing thought that one of the leaders in
the manufacturing of women's clothing in Finland seeks to boost
profits in countries with cheap labor and boost the reputation of
other countries' sewing companies. Finns' vocational skills are being
stripped of their value, Korhonen said Nov. 11. Because of the
shutdown of the Kuopio plant, 110 workers and 26 office employees are
going to lose their jobs.

Klementi board Chairman Madis Vooras said that following the closing
of PTA's Kuopio facility in the middle of next year, its
subcontracting orders to the Estonian firm will triple to form about
30 percent of Klementi's annual capacity. The factory in Kuopio will
be closed because of high production costs in Finland. PTA ended last
year with a loss of 8.7 million markkaa ($1.5 million) on a turnover
of 164 million markkaa.

The Finnish garment maker gives subcontracts also to Estonia's Sangar
sewing factory.