Finnish postal group Itella will cut 360 jobs from its mail sorting centres in Finland by 2010 as aconsequence of its €160 million reform comprising the implementation of new postal sorting
technology, the construction of two new postal centres in western and south-eastern Finland as wellas the expansion of two centres in Southern Finland. Most jobs will go through natural fluctuationbut there may be some redundancies.Itella said it plans to build two new postal centres in Oulu, western Finland, and Kuopio,south-eastern Finland, and to expand two centres in Tampere and Helsinki, southern Finland.Additionally, new postal sorting technology will be implemented over a period of 18 months and isexpected to result in efficiency corresponding to 360 man-years by the end of 2010.
The highest amount of 149 man-years will be reduced in Helsinki. The company expects most ofthe reductions to come about through natural wastage, but redundancies cannot be avoided. Staffwill be increased in the sorting centre of Tampere.
Jukka Alho, President and CEO of Itella said: “The postal industry is facing the greateststructural change in its history. We have been able to prepare for the change gradually, in closedialogue with the employees. This has made it possible to avoid major redundancies. Itella stillemploys about 23,000 persons in Finland.
“We have also listened to and heeded society’s messages regarding preserving jobs.Nevertheless, Itella has had to and will have to reduce its workforce. We have to stay competitive,otherwise customers will choose another service provider. We can see the Swedish Postal Serviceentering the Finnish parcel deliveries market. An international postal order company usuallychooses the cheapest service provider to be its partner, even if the price difference might be justa few cents. As there is less work, there will also be fewer employment opportunities. For Itella,it is important to be competitive in all circumstances,” he added.
Statutory labour negotiations will begin next week concerning all employees within thesorting operations. Itella and the Finnish Post and Logistics Union that represents the employeeshave agreed on extending the statutory period for negotiations which will end in January 2010.
Jarmo Niemi, National Chief Shop Steward for Postal Delivery and Transport of Itella, said: “It is sad that jobs are being lost as a result of changes that will happen in the future. We willhardly be able to avoid letting people go. For the employees, there is, however, the changesecurity agreement from last spring, which mitigates the effect and even gives room for individualsolutions. The agreement has been used in a number of situations, including in Rovaniemi andKajaani, where after the statutory labor negotiations, 49 people were let go. The current situationmeans that less than ten people will be left without a job, and the situation may even improvebefore the redundancies are set to take place. I hope that the negotiations that start next weekwill be carried out in the same positive, cooperative spirit laid out in the new Act on Cooperationwithin Undertakings from 2007.“
The ongoing temporary lay-offs concerning 140 people at the Itella Logistics center in Vantaawill be cancelled until the end of 2009, instead of the originally planned period of implementationduring May 2009 and April 2010. According to the company’s statement, the total volume of parcelsand cargo is expected to increase to the extent that the lay-offs are not needed during the rest ofthe year. The maximum planned duration of the lay-offs was 30 working days per person.
Itella employs about 23,000 people in all regions of the country. In 2008, the naturalturnover among Itella’s employees in Finland was 2,100 persons, while this year’s estimate is 1,350persons, according to the company’s statement. Next year’s rationalisation measures are expected todecrease the number of jobs within Itella by a little more than 2%.
