Minister orders inquiry into alleged exploitation at Kotka battery factory

Minister for European Affairs and Ownership Steering Joakim Strand says he is taking seriously allegations that Chinese workers at a battery materials factory under construction in Kotka were pressured to sign illegal employment contracts. Yle reported the allegations, and an investigation has now been launched.

Some workers were also allegedly threatened with dismissal and being sent back to China.

Strand has discussed the matter with senior officials responsible for ownership steering and with Finnish Minerals Group, the state-owned company that owns about 30 percent of the factory.

“I hope and believe that there has not been any broader problem at the construction site,” Strand said.

Finnish Minerals Group has said it will investigate the workers’ employment conditions. Strand said the company’s management would comment on the findings once the investigation is complete.

“There have been hundreds of subcontractors at the battery materials factory. Until now, I have heard nothing but good things from there,” Strand said.

The factory is owned by Easpring Finland, a Chinese-Finnish company. Its main contractor is China Harbour Engineering Company, a Chinese firm.

The Finnish Industrial Union and the Construction Trade Union have jointly investigated the situation at the construction site. Industrial Union chair Riku Aalto said the alleged exploitation had been widespread and systematic.

The owners and main contractor said they were aware of a disagreement between one subcontractor and its employees over the terms of employment. According to the companies, the matter had been addressed together with the workers.

The companies also said authorities had carried out several inspections at the construction site. Based on those inspections, no evidence of systematic abuse or structural problems had been found.