Business News
Metso is preparing operational adjustments in the business of Metso Power Oy to reflect the current market situation
Monday 30. March 2009 - Metso will start personnel negotiations regarding the personnel of Metso Power Oy in order to adjust its operations to the weakening global market situation.
The negotiations will affect all of Metso Power Oys personnel in Tampere, Lapua and Vantaa, Finland, a total of approximately 840 people. The negotiations will not affect the Finnish business of MW Power, which is a joint venture between Metso and Wärtsilä.
Through the personnel negotiations, Metso aims to adjust its business to respond to the needs of its customer industries. The objective is to find such cost-saving measures with which it will be possible to ensure the ability to maintain competitiveness and develop future products.
The primary reason for the adjustment need is the pulp and paper industrys structural change, which has weakened the demand for chemical recovery line equipment. The global economic crisis has slowed down decision-making regarding power plant investments in the energy industry.
In addition to higher operational efficiency and natural turnover, the adjustment measures under consideration will include, for example, the reduction of temporary employment contracts, voluntary off-time, part-time work, replacement of the holiday compensation with off-time, temporary lay-offs and, as an extreme measure, personnel reductions. If the targeted savings were to be achieved only through personnel reductions, it would mean a need to reduce 60-80 people during the years 2009-2011.
The effect of these measures on different personnel groups will be specified as the negotiations proceed. The objective is to ensure that the employees know-how and the quality of Metsos customer service will remain at a high level.
The outcome of the personnel negotiations will be announced at the earliest in the middle of May.