Tue, 03 Dec, 2013 04:57:40 AM Tax to hike 0.75 % in Oulu FTimes-STT Report, December 3  File picture of Vaasa city area. Photo - Lehtikuva. The Oulu and Vaasa City Corporations on Monday announced austerity programmes narrowing down recruitments from next year to deal with the ongoing economic crisis.
Oulu City Council has proposed alternative measures entailing layoffs as a means for saving.
Earlier, the council decided to increase tax rate from the existing 19.25% to 20% from next week.
The Council also decided on Monday evening that the staff would be given the option for taking a weekly lay off instead of unpaid leave.
The guidelines on the alternative measures concerning the layoff will be drawn up separately.
Employment protection for 12,000 employees of the city will expire in 2017.
The authority is expecting to save up to €5m through the programme.
The City of Vaasa, meanwhile, said the employees on payroll would be laid off for up to two weeks while those paid on hourly basis would be laid off for up to 10 days every month from 2014.
City-Council sources said the layoffs would affect around 3,200 employees and officials while more than a thousand other would be laid off in a short while.
Employees on monthly payroll may be compelled to take forced unpaid leaves of nine days.
The layoff will touch on all the sectors including some from the health and social service departments.
The city council estimated that a total of €6m would be saved in this way. Of the amount, €5m will be saved only from the job reduction.
On September 5, the Kouvola Municipality authority took up a programme to terminate 600 jobs out of a total of 6,600 by the end of next year as part of its austerity policy.
The regulatory bodies of the municipalities also hinted that more municipalities were likely to face similar situations as part of their respective cost cutting initiatives.
Sources said 27 municipalities, where a total of 50,000 employees work, would be going through the layoffs.
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