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Home BUSINESSItella plans to terminate 1,200 employees
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Fri, 24 Jan, 2014 03:34:35 AM
FTimes-STT Report, January 24

National postal service cooperation Itella announced on Thursday that it was set to begin negotiations aimed at massively reducing its workforce.

The authority planned to terminate 1,200 employees and hold negotiations with 8,500 workers, said Itella sources.

If the redundancy is realised, it will be one of the largest lay off in Finnish employment history comparable only to Nokia, which in the past reduced its workforce by over a


Photo Lehtikuva.
The Post and Logistic Union (PAU) has warned that the layoff plans will seriously jeopardise delivery of postal services.

The union representing postal workers also fears that more reduction is expected during the course of the year that will likely focus on workers involved in the distribution of


Esa Vilkuna, chairman of PAU, said Itella was likely to reassess its workforce situation again this year in the newspaper distribution department, mailing service and management


In addition, the postal workers union estimated that increase in postal charges by Itella would reduce the number of newspapers, letters and advertisements distributions.

PAU clearly felt that increase in advertisement mailing charges could still be achieved without affecting the staff size.

Antero Palmolahti, an Itella trustee, said he was not surprised by the request for negotiations but to him the size of the proposed redundancy was a surprise.

The Central Organization for Finnish Trade Unions is also dismayed with Itella plans.

SAK’s Director for Economic and Transport Matti Tukiainen insisted that reduction through retirements and gradual natural attrition were better alternatives.

On May 22, 2013, the postal and logistics company terminated a total of 183 people, including 147 in Finland, from its expert and administrative sections.

The negotiation, however, did not involve officials engaged in the daily postal services.

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