Raute Corporation has initiated negotiations in accordance with the Act on Co-operation within Undertakings concerning measures to adapt its operations in Finland, i.e. in Nastola, Lahti, and Kajaani. The purpose of the negotiations is to adapt operations to the financial and production-related situation resulting from the declined order book and actions preventing work to be done due to the operational restrictions (e.g. in travelling) because of the coronavirus pandemic.
No need to terminate employment contracts
The adaptation measures concern all salaried and senior salaried employees of Raute Finland and there are 333 employees within the cooperation negotiations. Raute estimates that the initiated negotiations concern temporary layoffs for at most 90 days, and the temporary layoffs will concern about half of the employees within these negotiations. The company estimates that there is no need to terminate employment contracts.
Adaptation measures will be carried out also in Raute’s units outside Finland according to the local practice and order book.
The initiated negotiations do not indicate any change in the previously disclosed outlook for 2020. Raute’s net sales for 2020 are expected to decrease compared to 2019 and operating profit is expected to weaken clearly year-on-year.