The Closure of a Factory and its Impact on Health

Abstract

SKF, one of Sweden's foremost corporations, is the world's largest producer of bearings. In the seventies, largely as a consequence of Japanese competition, in order to maintain its preeminent position, SKF embarked on a program of global rationalization and automation. One of the consequences of these measures was a decrease in the size of the overall SKF workforce and the closure of factories in a number of countries. One of the casualties was the manufacturing operation of SKF Canada Ltd.

The following article concentrates on the consequences of the shutdown for employees. It is seen that over five surveys conducted over a two and a half year period the impact of the shutdown on some dimensions was the same for former employees and their wives. On others, former employees responded differently than their wives. Overall, however, the closure of SKF Canada Ltd., in terms of stress, economic hardship, and ill-health, was devastating for both former employees and their wives.