SCA Packaging UK

Openness and transparency promoted by SCA’s human resources

department leads to minimum disturbance and optimum re-employment
opportunities for staff during a re-structuring phase that led to three
factory closures.

The company SCA’s reports were a pro-active way for the

The SCA group was established in 1929 and
originally comprised ten forest industry
companies producing sawn goods and paper
pulp in northern Sweden. SCA has since
grown and diversified into three main
businesses - Hygiene Products, Forest
Products and Packaging – with 8 Business
Groups. These operate in 43 countries, across
five continents, employing more than 43,000
people.
SCA produces and sells absorbent hygiene
products, packaging solutions and publication
paper. Its products are designed for private
individuals to enhance their quality of life.
SCA’s products and services for institutions
and companies offer increased product quality,
safety, productivity and profitability.
SCA aims to grow by 8-10% per annum, an
aim to be achieved by both organic growth and
through acquisitions.
business to tell its investors and customers
what they were doing on environmental and
social issues. For example, their support to
voluntary forestry certification schemes
promoting standards of sustainable
management or research and development in
life cycle assessment so as to reduce
environmental impacts. Part of the reason for
this approach comes from the Swedish origins
and the impact of this culture, whose
population have high levels of awareness on
the environment which are reflected in
business values.
SCA intend to turn their focus on social
impacts and this case study concentrates on
their people approach.
This case study focuses on the re-structuring
of SCA Packaging’s UK business through the
closure of three factories producing corrugated
boxes.

SCA’s corporate social responsibility (CSR)

The drivers
was first based on its environmental
Re-structuring for SCA Packaging UK was
responsibility. Formal reporting in this area
necessary as the business needed to close
started in 1990s. Two years ago the SCA
plants that were not, or would not meet current
Environmental and Social Report was
or future market demands. The changes were
launched with the belief that CSR will acquire
also driven by the need to move into new
more importance for both its employees and
markets.
society in general. For the company this was a
natural progression as it recognised SCA’s
The company’s corporate values of
responsibility to society and to its customers.
responsibility, excellence and respect, together

Article 13 and CBI – CSR Case Study Series, March 2004

with its desire to be a good employer, drove
the way in which it implemented the changes.
Taking action
The decision was made to close three plants in
the period 2001–2002. The restructuring
affected more than 3,300 people and led to
300 job losses. SCA understood the
implications of the proposed changes and
immediately committed to ensuring there was
effective support for all employees. The
management team first spoke with line
managers at the plants, who then briefed their
teams. SCA also explained the situation to
employee representatives.
The greatest challenge encountered was
deciding which plant to close and how to
explain the decision. This was because in one
case the decision was based on an analysis of
future market trends. Here the difficulty was
explaining to staff why their plant was being
closed instead of another. In this situation it
was important to keep talking and to provide
solutions.
“Our philosophy was to put ourselves in the
shoes of all our stakeholders, most notably our
staff”, explained Tony Atherton, HR Director for
SCA Packaging UK. “The company explained
the business case for the closures, but we also
had to be open enough to be questioned and
to provide counter arguments, and in some
cases to be sufficiently flexible to agree to
changes”.
Where available, the first option offered was
employment at other SCA operations. Those
staff that took this option were offered a 90-day
trial with no financial penalty if this was not
successful.
Agreements were made with the employee
representatives, which included severance
payments and agreement on the provisions to
be made to help staff search for alternative
employment. Dedicated centres at each site
were set up to help staff change jobs or move
into another avenue of life altogether. Services
available included individual career
counselling, job vacancy searches, workshops
Article 13 and CBI – CSR Case Study Series, March 2004
and administrative support. Local employers
were also contacted. Support for staff
continued for six months after closure. These
activities go beyond what was legally required
of SCA and demonstrated their commitment to
looking after their staff.
The time taken to go through the closure
procedure varied at different sites between six
to 12 months. As a result of the support
provided, 70% of all employees were settled in
a new role by the time of the closures.
A key learning from this re-structuring was not
to ignore the factories that would be receiving
the diverted work. Staff at these sites also had
concerns about the changes and they will need
to be prepared and ready for the transition. On
reflection, SCA did not ignore these people but
did feel that they should have given them more
attention.
Overall, the changes made fed directly into
SCA’s business strategy, flexibility is key to the
company success. The process of dialogue the
business went through is applicable across the
group and extends well beyond the function of
the closure, and can be used in other areas of
the business, for example in dealing with
suppliers.
The business benefits
The main benefit was that there was no
disruption to the running of the business during
the closure process. The process adopted
allowed for the company to be orderly and
prepared, and because of this there were no
surprises.
Other benefits included the full cooperation of
the workforce and everyone else involved in
the transfer of business from one plant to
another.
The company believes that through its
responsible attitude other benefits have
resulted, including enhanced staff loyalty and
reputation as a responsible employer.
Why is it CSR?
The re-structuring of the business cut to the
core of the business as it impacted on the local
company, its workforce and family, and on the
local environment and economy. It also
affected those who received the diverted work.
Under-pinning all decision-making is the
conviction that SCA values must at all times be
reflected in actions - behaving responsibly is
fundamental to SCA.

What next?
SCA’s approach of involving and informing
staff, customers and investors will continue as
the company believes that its behaviour will
attract business partners.

Contact us
Any comments on this profile? Would
you like your organisation to be
profiled? For further information please
contact Jane Fiona Cumming at Article
13 on 020 8840 4450 or email
janefionac@article13.com.

For more information on SCA

Packaging UK please contact Tony
Atherton on 01622 793370 or email
tony.atherton@sca.com.

Article 13 and CBI – CSR Case Study Series, March 2004