Kajaani paper mill closure

Introduction

In September 2008, it was publicly announced that the Kajaani paper mill in Finland would close. The factory was operated by United Paper Mills (UPM), one of Finland's largest paper manufacturers, and employed 535 workers, making it Kajaani's largest single employer. The closure had been anticipated and the final decision set in motion a whole series of planned cooperation measures to alleviate the negative impacts of the plant's closure on the local economy and on the health and wellbeing of factory workers and other citizens of Kajaani.

The intersectoral co-operation was geared specifically towards providing timely preventive and responsive measures to counter the possible negative consequences of unemployment. A health and wellbeing impact assessment study was also launched by the National Institute for Health and Welfare (THL) to monitor the closure and the measures undertaken by UPM and local and national actors.

Key actors and co-operation mandates

United Paper Mills invested some EUR 2.5 million into supporting the employees during the closure phase and another ca EUR 10 million into decommissioning the plant to aid conversion into a business park - subsequently named Renforsin Ranta. The Finnish Government allocated EUR 22 million for structural changes in the Kajaani area.

The co-operation to minimise the health and economic impacts of the plant's closure involved public and private actors from several sectors, including health, employment and finance.  Actors included UPM's local leaders, their human resources department, occupational health care staff, legal representatives on industrial safety, Kainuu regional authorities, Kajaani City, church authorities, the local labour force bureau, health care actors (including psychiatric emergency services), as well as employee representatives. The co-operation was mainly co-ordinated by human resource managers at UPM and the occupational health professionals, and continued in varying capacities until the end of 2010.

Support measures

Some of the support measures were directed at employees while others targeted the whole community by creating new jobs and supporting other companies in the area. The factory's occupational health services department organised a multiprofessional team to provide psychological crisis support and other actions to prevent negative health effects.

The company initiated the "From work to work" support programme, where the target was a new job or other type of permanent solution for all. Financial support was given to the employees for studying, moving to another city for work, or starting a business. The labour force bureau set up an office at the factory.

A new business area was created that replaced the factory area. UPM went much further in their support measures than required by law. Success was also based on good public relations (trust) and the mandates of many actors involved.

Impacts on health and wellbeing

The THL study used health impacts assessment methodology to evaluate the health and social impacts. Health professionals carried responsibility for being the first point of support for employees. The key issues that were seen as important were mental health, occupational safety, continuing support for ongoing health care (chronic diseases), and behaviour changes (bad habits e.g. use of alcohol). The most vulnerable social groups were identified as those with less education, and also older age groups.

The key determinants of health were identified as employment possibilities, subsistence, and social networks/relations (as sources of support). Data from the study included interviews, a follow-up of each new work placement, statistics on occupational health care visits, and the key reasons for the visits.

The effects of the factory closure were mostly indirect. Very few direct health effects were seen. The work to decommission the factory did carry health risks, but these were in part offset by decreased risks from working in a heavy industrial work environment and the known health effects of shift work. Adaptation to new and uncertain circumstances led to stress and worries for some, while somatic symptoms increased, with more frequent visits to occupational health services.

Indirect effects on health and wellbeing included e.g. decreased individual financial security and disappearance of a long-standing work community.

One year after the announcement, half of the personnel had found employment and a fifth were in training. Four per cent had started their own business, two per cent were retired, and fifteen per cent were unemployed.

Unemployment affected employees differently: while none of the upper white-collar workers were unemployed at that time, seven per cent of the lower white-collar workers and seventeen per cent of the paper workers were unemployed. Female paper workers were unemployed (26%) more often than all other groups.

Benefits of intersectoral co-operation

The paper workers benefited most from various parts of the support programme, while the white-collar employees mostly managed without specific support measures. However, differences between social groups in coping with the situation could not be avoided. Even so, the assessment was that the comprehensive supportive actions prevented potential negative health impacts also in the future, although long-term impacts will need to be assessed later.

Clearly, the involvement of different actors, the mandates and financial support of several local, regional and national actors coupled with the support (including financial) of UPM and its human resources personnel has offset to some extent the negative affects to health and wellbeing of the former employees of Kajaani paper mill. The business park is up and running and already employs over 250 personnel in 20 new companies, with a further 250 employees in other businesses in the area.

Moreover, it was announced by CSC - IT Centre for Science Ltd in late 2010 that they plan to open a state-of-the-art data centre on the site. In fact, the rate of economic regeneration has been much faster than expected, even in a difficult economic climate.