Summary

A union in the hotel and restaurant industry participated with selected tourist operators in Finland in a pilot project which demonstrated the value of the eco-audit as an environmental management tool for this sector. The success of this case showed how cooperation of the staff and their union can allow audits to be utilized by small and medium-sized enterprises in the service sector to achieve environmental and cost-saving objectives.

In the end of 1993, the Finnish Tourist Board launched a cooperative project for development of environmental protection in tourist enterprises in Finland. Several organizations including the Hotel and Restaurant Workers' Union, industry associations and government Ministries participated in developing, steering and financing the project. The project was coordinated by Savonia Kehitys, a development unit operating out of the Hotel and Restaurant School in Kuopio.

The process resulted in changes in purchasing practices, maintenance, energy and water consumption, human waste management, food preparation and coordination of related leisure activities for guests. As well, the operators realized considerable cost-saving due to changes in waste management of cooking oils, cardboard, paper, glass, plastics, metal and other wastes in the tourist industry.

The Country and Regional Context

The Republic of Finland, with its population of 5 million, is known for its large, sparsely-populated areas of forests stretching from the populated South to the Lapland region in the north. With a comparably low rate of manufacturing, about 60 per cent of Finland's GDP owes to the service industry, of which tourism forms an important part. The latest member of the European Union, it now implements directives and policies of the Union, including the EU’s EMAS Regulation.

As such, it is fitting that Finland has succeeded in applying Agenda 21 to tourism, which is emerging as one of the largest industries in the world, with half a billion international travelers and about 10 times as many domestic travelers annually. In Finland, the industry employs almost 80,000 people, and foreigners bring in about $1 billion annually. Finns are aware that a forward-looking tourist industry can provide incentives for protecting the natural and cultural environment, as well as numerous other cultural and economic benefits.

Like many Finnish businesses, operations in the tourist industry are small. However, the rate of unionization is 90 per cent of all workers, amongst the highest in the industrialized world. Since 1968, collective bargaining in the private sector has been carried out between central trade union organizations and employers' associations, within the framework of an incomes policy. They set out general conditions according to which parties may reach sector agreements, usually on a country-wide basis. A deepening recession has threatened this arrangement, however, with an increasing number of specific workplace agreements, especially in the food industry which broke with the centralized policy in 1993.

The Participants

The enterprises participating in the eco-audit pilots represent a good cross-section of the Finnish tourist industry, including: a city hotel, the Ramada Presidentti Hotel in Helsinki; a highway service centre, the Motorest Tuuliruusu in Mantsala, a tourist farm, Matkailutila Lahdelma in Pertunmaa; a chain and nature hotel, the Rantasipi Joutesinlampi in Joutsa; a health resort, the Kylpyla Hotelli Casino in Savonlinna; a tourist farm, the Virtaniemen lomatila in Kourtane; a training and exercise centre, the Puijo in Kuopio; a spa hotel, Rauhalanti Hotel in Kuopio; a camping ground, the Camping Raulhalati Camping in Kuopio, and a ski resort, the Pyhatunturi in Pelkosenniemi.

The eco-audit project was directed by a Management Group with representation from the Finnish Tourist Board, the Association of Finnish Travel Agents, the Hotel and Restaurant Council, and the Finnish Association for Nature Conservation, as well as the Ministries of Trade and Industry, the Interior and the Environment. The Ministry of Agriculture and Forestry also provided support to the rural tourist enterprises participating in the project.

Employees were represented by the Hotel and Restaurant Workers' Union (the Hotelli- ja Ravintolahenkilokunnan Liitto HRHL ry) whose membership of some 53,000 includes about 80 per cent of all employees and supervisors working in tourist industry in Finland. The Union maintains 11 local branches across Finland, with over 1300 stewards and health and safety representatives. It maintains affiliation with the Central Organization of Finnish Trade Unions (SAK; through which it belongs to the International Confederation of Free Trade Unions), the Nordic Union of Hotel, Cafe and Restaurant Workers, the European Committee of Food Catering and Allied Workers Unions, and the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers Associations (IUF).

The Context for Action on Sustainable Development

At the same time as tourism promotes protection of the environment, it places its own burdens on it. Tourism exploits resources and requires land, and produces wastes that pollute the air, water and land. Traffic consumes natural resources and produces harmful emissions, noise and congestion. The number of tourists in natural areas, including sensitive, protected areas, is steadily growing. However, concern for the environment and the future of our planet has begun to change values. Industry leaders are increasingly aware of the extent to which they are dependent on an unspoiled environment, and this has spurred a search for environmentally-sustainable alternatives.

Finland has an advantage in that it can still boast extensive areas which are "pristine", making it attractive to eco-tourists. Industry leaders were aware, however, that they had allowed their country to slip behind world leaders in stewardship of the natural basis of their industry. Their concern was reinforced by the knowledge that their industry was taking more and more people into the few areas that are otherwise undisturbed and usually most vulnerable; all at a time when eco-tourism is placing an ever greater value on "original" undisturbed environments.

The Position of the Union

While hotel and restaurant workers share industry's concerns, they also have their own as employees. Although conditions for Finnish workers in this sector may compare favorably to those in other parts of the world, they have been relatively low paid, compared to other private sector employees, and have to work irregular and often inhuman working hours. In addition, they have not been allowed sufficient participation in strategic decision-making for the enterprises in which they are employed.

Environmental issues have become increasingly prominent with the union movement in Finland. Although this Project was initiated by the tourist industry in Finland, the Hotel and Restaurant Workers' Union participated willingly, thereby ensuring cooperation of staff. Union members have a direct interest in environmentally sustainable development, firstly, as members of society and consumers who are concerned about the degradation of the natural environment, and secondly, as workers who have had first-hand experience with ways in which their industry was contributing to it.

They are concerned about unhealthy trends affecting their members as hotels and restaurants respond to harsh competition by resorting to unsustainable forms. "Industrialization" demands ever-greater flexibility of employees, more part-time work, and factory-like conditions that are unhealthy for employees and the natural environment. Increasing division of process, for example, has led to a sharp rise in packaging, as food arrives fully-or semi-processed. It likewise uses disposable dishes, glasses, cutlery and utensils that are wasteful of the earth's resources and a source of pollution and waste. It also means more energy consumption, raising pollution levels and depleting non-renewable resources. Worst of all, industrialization denies workers' experience and knowledge that could contribute to rationalization of the industry.

International studies compiled by the Union catalogue the harmful effects of industrialization on hotel and restaurant on their members. Workers suffer from high rates of cardiovascular disease, lung cancer caused by cooking fumes and second-hand smoke, spinal problems and attrition, skin diseases, and a range of stress-induced illnesses. Furthermore, holding more than one part-time job, leads to physical and mental exhaustion and work-related illness.

Hazards in the workplace also signal environmental problems. Skin diseases and allergies caused by strong chemical cleaning agents and disinfectants, additives in food, and raw materials contaminated by pesticides and herbicides are harmful to the environment outside the workplace. In the same way, psycho-social illnesses engendered by the personnel policies typical of this trend, reappear as negative consequences for the community.

Hotel and restaurant workers have pressed for improvements through their Union and international affiliates. They recognize the need for government intervention to establish and monitor standards, but see the most effective form of control as exercised by people who take direct responsibility for the consequences of their decisions -as consumers, workers and managers.

As such, the Union supports a reliable system of certification as necessary to verify that an establishment is living up to its claims. It has promoted eco-audits but insists that proper auditing must involve the employer working in conjunction with local authorities, as well as employee and consumer organizations to insure that requirements are met and the public is properly informed. As such, it welcomes the spread of the EMAS system put in place by the European Community.

The EU Eco-Management and Audit Scheme (EMAS)

Although Finland has only become a Member of the European Union, this project occurred just after the Council of European Communities adopted Council Regulation (EEC) No 1836/93 allowing voluntary participating by companies in the industrial sector in a Community eco-management and audit scheme came into force on April 13, 1995.

Like EMAS, the Finnish audit was based on the concept of "shared responsibility" and the continuous improvement in performance through: the introduction of a systematic approach to environmental protection including environmental policies, programs and management systems; a periodic self-assessment of environmental performance; an independent validation; and "environmental statements" of participation, which companies fulfilling requirements would be allowed to use.

In December 1994, Finland passed an Act based on this statute, entitled Ymparistojohtaminen ja -auditoinnit which made the National Board of Waters and the Environment (the Environmental Centre of Finland) the competent body for Finland participation in EMAS. The Centre of Measurement Technology will confirm and supervise the work of environmental verifiers.

Implementation of the Environmental Project

The YSMEK project began in February 1994 with a survey of the environmental performance of tourist companies, as well as the attitudes of management, staff and customers towards environmental matters. It centred on an "eco-audit" which was developed and carried out in ten tourist enterprises that had volunteered for the project and agreed to share in the cost. It was coordinated by Savonia Kehitys and overseen by a management group with representation from all concerned parties, including the Hotel and Restaurant Workers' Union.

The audit employed internationally-accepted standards for environmental management based on the Environmental Management System (EMS), with such quality standard systems as ISO 9000. It provided companies with the information needed to reduce use of disposable products, to produce less waste, develop sorting methods, and decrease their consumption of raw material, water and energy. The participating enterprises were:

• The Ramada Presidentti Hotel in Helsinki; a city hotel, which faced the question of whether or not it could retain its customer base of foreign travelers while altering its operations in an environmentally-friendly manner, particularly as it concerned consumption of electricity and water.
• The Motorest Tuuliruusu in Mantsala; a highway service centre, which concentrated on the shop and restaurant, and on the management of the waste and litter left by travelers, including hazardous wastes. Electricity and water use were also an issue.
• Matkailutila Lahdelma in Pertunmaa; a tourist farm which concentrated on waste management, a particularly pressing problem in sparsely-populated areas in face of Finland's new Waste Act.
• The Rantasipi Joutsenlampi in Joutsa; a chain and nature hotel built in the midst of a pine forest, in which consumption of energy and water by the swimming pool, sauna and terraced housing was the issue.
• The Kylpyla Hotelli Casino in Savonlinna; a health resort with high energy demands from extensive bathing facilities, as well as problems with treating of water and discharges of chemicals and heat to sewage.
• The Vertiniemen lomatila in Kuortane; a tourist farm featuring biodynamic farming, which focused on waste management from its tourist side, as well as from the forestry and biological farm.
• The Puijo Tower and Hotel in Kuopio; a hotel and training and exercise centre set in the midst of Puijo nature preserve, which was generated waste and consumed large amounts of energy.
• Rauhalanti Hotel in Kuopio; an integrated spa hotel, in which the focus was on tremendous energy and water consumption, as well as use of chlorine.
• The Rauhalanti Camping in Kuopio; a camp ground with environmental impact caused by growing numbers of visitors; large amounts of waste, consumption of water, discharge of cars, and noise from motor scooters, as well as energy for heating of water and rooms, refrigerators and saunas.
• The Pyhatunturi in Pelkosenniemi; a Lapland ski resort bordering on the Pyhatunturi national park, with environmental impact from building and maintaining ski slopes, the ski centre, lifts, lighting and the snow blowers, as well as environmentally-unfriendly behavior.

The audits utilized recommendations from an earlier survey by the Swedish Hotel industry called Environmental Temperature '92. Besides management and supervisors, interviews were held with workers while at work. The operations examined were: planning, purchases, management, kitchen and storage, maintenance, cleaning and rooms, dining room (especially breakfast), reception and office, programme services, bathing establishments, skiing operations, and forestry and agriculture.

An environmental coordinator chosen from the staff in each pilot company was vital to the success of the project, providing a person in charge at each site. Coordinators met early during the project and agreed to that their duties would include: following responsibilities:

• participation in drafting of environmental policies
• decision-making on purchases and investments
• dissemination of environmental information
• planning of environmental measures
• informing and motivating the staff
• coordination between departments, management and staff
• realization, delegation and supervision
• informing and motivating customers
• follow-up and measurement of results
• information about results and public relations

They met again during the project, to discuss the issue of waste management, and savings in energy and water.

Environmental Outcomes of the Project

Changes in company behavior soon became evident. Companies that had previously attempted environmental management found that the audit facilitated the process by providing needed information and insights. It had the effect of engaging everyone in the company, including customers, in the process. Initial audit procedure took from two to five days; but, as they were regularized, the amount of time required was reduced. Information on how the pilot companies responded to audit results with measures to decrease the environmental impacts of their enterprises came from management and staff, the people conducting the audits, and from other companies and outside expertise. All participants agreed that it should be continued and become a permanent feature of the operation. Especially noteworthy were changes in:

• Environmentally-friendly and local purchasing: Purchasing takes into account the whole life-cycle of the product or service, from the purchase and use of raw materials to disposal. The emphasis is on durable, recyclable products, sensible and larger packaging, and on machines and equipment that use less power and water, and do not contain harmful substances like CFC's.
  Pilot enterprises found ways to decrease environmental impact through changes in purchases of raw materials, supplies such as writing materials, cleansers or detergents, and equipment. They reduced waste and thus waste duties in advance by reaching agreements with suppliers on the use of recyclable containers, packing materials and the cartons. The audit also resulted in companies turning more to local products to decrease transportation.
• Real estate and maintenance: In addition to environmental improvements, pilot enterprises appreciated the amount of money that was saved by cutting energy consumption by 10-25% and water by up to 30% with small investments and changes in working methods. It involves sensible measures, such as discarding unnecessary small appliances, using TV sets with shut-off rather than stand-by switches, and doing away with mini-bars and unnecessary lighting.
  Preventive maintenance was found to be important and useful in detecting deviations in consumption. Installation of water-saving showers and toilets paid back in water and energy costs, as did energy recovery air conditioning systems, controlling hours of use, and proper maintenance. Lower temperatures in cooking reduced need for ventilation and fewer fumes, cutting down on cleaning.
• Restaurants and meals: Breakfast was found to be a good place to send an environmental message to customers, by getting away from individually-packaged portions, and disposable products and packages. Small portions of mustard and ketchup were replaced, the thickness of napkins reduced, and re-usable table cloths purchased. Pilot enterprises began to compost bio-waste.
  Jam, butter, sugar and honey in small packages were served in larger containers. Likewise, plastic glasses and mugs were replaced by glass or thermoplastic which can be washed hundreds of times. Some companies now plan to employ the Central European practice of charging a deposit on beer mugs.
• The reception and office areas: Operators began using recyclable paper with the Nordic Eco label, and to cut down on meeting paper material, after being shown studies which show that 65% of it goes directly into waste. Staff also insured that all energy-consuming machines were turned off when they left.
  An overall decrease in amounts of waste: Companies began to sort waste, including paper, cardboard, glass, metal, used cooking oil, and organic waste, and found it quite easy to find users willing to remove and utilize sorted waste. The amount of refuse and associated waste activities were dramatically decreased; and savings easily paid for the cost of sorting containers
• Tourist shops: Owners began choosing products with as little packaging as possible, made of recycled material. They replaced plastic with paper bags, avoided ordinary tourist junk, and turned to food products that have been produced locally.
• Cleaning: Environmental-beneficial substitutes for harsh cleaners and detergents were found to be readily available. Disposable soaps and shampoo containers were replaced with larger containers. Courses and instruction were provided in ecological cleaning and in the management of waste.
• Economic benefits for the company: Companies appreciated lower expenses resulting from savings in raw materials, energy and water and less waste. They furthermore felt that "pioneers" would have a competitive advantage with new categories of customers who respect practical efforts for environmental protection. Particularly noteworthy for the Union was the admission that staff must share the responsibility for this process through teamwork, as it only succeed where responsibility was shared at all levels.

Noteworthy Customer Responses

Travelers at Motorest-Tuuliruusu responded well to sorting as an answer to the tremendous amount of waste generated by travelers at rest stops. 95 per cent of the 500 guests who were interviewed said that some sorting was necessary, and hoped to have a network of well-marked sorting stations throughout the country. Supervised rest stations were the best places for sorting, not requiring extra stops or detours. As a result, the company expanded this service to 21 centres in 1995.

An overwhelming majority of customers at the Ramada Presidentii welcomed the use of unbleached toilet paper. Secondly, they favored less washing of towels, and thirdly, giving up individually-packaged soap and shampoo. They were willing to give up individual packages at breakfast, provided that hygiene would not suffer, and were also willing to sort waste in their rooms. Only 40 per cent through that a minibar was necessary. Almost all thought that environmental measures either improve or do not change the quality of service, and one-third said that environmental aspects influenced their choice of hotel.

Customers at the Pyhatunturi hotel especially agreed with the dispensing of individualized, disposable toilet articles. Half of the skiers indicated that they would be willing to pay more on their lift tickets if the savings went to expanding the experimental wind power plant on top of the mountain to allow it to serve the energy needs of the whole area.

Recommendations from Savonia Kehitys

The company hired for the eco-audit project made a number of valuable recommendations at its completion, including:

• That a model for Environmental Management System be developed for large tourist companies, and a somewhat lighter model for smaller ones. Companies that wish to have their EMS officially certified could participate in the EU's EMAS, through the EMAS working party of the Ministry of the Environment and the Finnish Standardization Organization SFS.
• In building an environmental culture within a company, involvement of staff in a team approach is primary to developing joint responsibility. With training and encouragement, staff will participate in establishing objectives and targets for savings and working methods. An environmental coordinator is invaluable.
• Acquisition and dissemination of information on environmentally-friendly measures, legislation and international trends in this sector, new requirements and wishes of customers should be organized using the Environmental Centre of Finland's data bank and international contacts.
• Environmental performance depends on cooperation in whole purchase and waste management chains. This includes cooperation with unions in transportation and shipping, as well as tourist companies, suppliers of goods and their background companies to draw up purchase and supply recommendations.
• Measures for electricity, water, heating energy and waste are tools for the evaluation of environmental impact and can pinpoint areas for improvement, with results printed for all to see.
• Straightforward information to inform customers and induce them to participate in environmental programs may come from governments, tourist companies, and mass media.
• A mutually-agreed national emblem to signify environmentally-sustainable operations to return credibility to "green labels".

Agenda 21 Objectives and Lessons

Whereas much of the debate over sustainable development has focused on manufacturing industries, this case shows how it applies to a tourist industry that is being increasingly challenged by environmentally-conscious tourists and the general public. It illustrates why the eco management and audit procedure is viable for small and medium, as well as large enterprises, and is gaining rapid acceptance as a low-cost, practical guide to company action. It also showed that the confidence and cooperation of workers and their union is essential to its design, implementation and reporting.

With direct dependency on nature, the tourist industry knows that the environment is not a "free good". As provided in Chapter 10 (Managing Land Sustainability), operators had to search for practical solutions to unsustainable use of land and natural resources. They employed planning techniques that focused on ecosystems, watersheds and encouraged sustainable livelihoods, as described in Chapter 13 (Sustainable Mountain Development).

The case shows how environmentally-sound decisions respect the inseparability of the physical environment and work environments. It proves the Chapter 4 contention that standards of living are consistent with changes in production and consumption patterns to reduce use of energy and materials and production of waste through recycling, reducing wasteful packaging, and the introduction of environmentally sound products as discussed in Chapter 18 Protecting and Managing Fresh Water) and Chapter 21, (Managing Solid Wastes and Sewage).

A major non-governmental organization (NGO) was able to contribute expertise needed to implement socially-responsible and sustainable development, as indicated in Chapter 27. As well, operators cooperated with local authorities which have responsibility for key areas such as building and maintaining water systems and roads, planning of housing and industrial development, and setting of local environmental policies, as provided in Chapter 28.

The project demonstrated the positive outcomes that result when workers are able to contribute to the improvement of environmental performance. The immediate pay-off is that workers become more trusting and engaged; they actually take ownership of the outcomes, once given the right to participate, as recommended in Chapter 29 (Workers and Trade Unions).

It also shows that workers and their unions have their own reasons for seeking change. They have always seen the protection of the workplace and related environments as a priority, and in this case, had a special stake in influencing, healthier, more socially-responsible development in the tourist industry.

Furthermore, this case clearly illustrates how responsible entrepreneurship can improve efficiency of resource use, minimize wastes and protect human health and environmental quality, as provided in Chapter 30. Finally, as explained in Chapters 36 and 39, it shows that education and information are key components, as any environmental management system must impart environmental and ethical awareness, values and attitudes, and the appropriate skills and behavior. It applies to managers, employees and the customers alike, and takes advantage of the wealth of information that already exists for the management of sustainable development.

For further information contact

Sointu Toivonen
Hotel and Restaurant Workers Union
Toinen linja 3, P.O.B. 327, 00531
Helsinki, Finland
tel: 90-775-61 (exch) fax: 90-775-6223