The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Transportation / Storage Warehousing And Support Activities For Transportation, Postal And Courier Activities Postal And Courier Activities 53.10 - Postal activities under universal service obligation
350 - 450 jobs Number of planned job losses
Announcement Date
23 January 2014
Employment effect (start)
23 January 2014
Foreseen end date
Description
Finnish logistics company Itella has announced redundancies of up to 1,200 employees from its mail delivery services. The company has started mandatory negotiations with employee representatives on the cuts.
Itella has approx. 8,500 employees in the mail delivery services affected by the proposed cuts. Of those, up to 800 could be dismissed and further reductions of up to 400 could be made through other arrangements. Itella cites dramatic decreases in the delivery of letters and magazines as the reason for the cuts. That decrease is not compensated by the increase of package deliveries from online purchases. Itella states that it can still fulfil its universal service obligation.
Itella's labour unions called the proposed redundancies excessive and questioned the company's ability to meet its legal obligation regarding mail delivery. They also requested that possible cuts would be spread over a long period.
Updated, 13-03-2014: Itella has concluded negotiations and announced the dismissal of 495 employees. In addition, an increase in part-time contracts will affect 180 employees and further redundancies will take place through other means. The PAU union criticised the outcome as 'too forward-looking' and expects the quality of services to deteriorate.
Updated, 16-04-2014: Itella is to cut up to 85 jobs at its Logistics division (semi-trailer truck drivers). As reported, the company is currently negotiating with trade unions with regards to 420 employees within Itella Logistics. Itella has also launched a New Path assistance program, which provides training and job search assistance and retraining to postal employees who are affected by the restructuring.
Updated, 02-06-2014: Itella has concluded negotiations at the logistics division and has announced the dismissal of 55 truck drivers instead of the previously announced 85. The company's employees at the logistics division entered into strike when the negotiation result was presented.
Updated, 28-11-2014: The Finnish Post and Logistics Union has announced that Itella has had to reemploy 200 employees previously made redundant to cope with the high demand on delivery services. The company announced that the re-employment refers to just over 100 staff.
Sources
27 May 2014: Svenska YLE
23 January 2014: YLE News
23 January 2014: Taloussanomat
9 April 2014: itella.fi
Citation
Eurofound (2014), Itella, Internal restructuring in Finland, factsheet number 76489, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/76489.
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