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Outokumpu Averts Temporary Layoffs at Tornio

12/02/2008 - ABSTRACT: Outokumpu agrees with employees on a solution that avoids proposed full or part-time temporary layoffs at the Tornio plant that had been prompted by low order load.

Outokumpu has agreed with employee representatives on a solution that avoids the full or part-time temporary layoffs at the Tornio plant. The company and its employee representatives, who had been negotiating the potential layoffs since November 10, 2008 due to a low order load, had been actively seeking alternatives to the layoffs.
 
The agreed-upon solution will deliver substantial cost savings by performing more maintenance work by Outokumpu’s own people, and by investing time in training, operational improvement programs and encouraging the use of flexible working hours and other leaves. The solutions will achieve cost savings by cutting expensive weekend shifts, freezing the production bonus system, and through a general cost cutting program.
 
The actions that have now been agreed will result to almost the same level of savings as were targeted in the original proposal for negotiations.
 
Outokumpu said that it will take additional action to improve its profitability if the market situation continues to be difficult.
Outokumpu Group employs 8700 people, 2300 of which are at the Tornio Works in Finland.