Restructuring events
European Restructuring Monitor (ERM)
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.
Manufacturing firm Metso has announced redundancies of up to 630 employees from its paper machine production business. The company is starting negotiations with employee representatives on the cuts as well as on temporary lay-off plans for the rest of its workforce.
Metso's planned redundancies include up to 480 dismissals and the outsourcing of up to 150 positions. The company reports that the demand for paper machines has declined permanently as a result of media becoming increasingly digital and that it seeks to save 30 million euros annually. Redundancies are scheduled to take place during the first half of 2013. The remaining personnel may face temporary lay-offs depending on work load at different plants.
Metso's announcement drew criticism from labour unions as the company's financial situation is said to be good and as it had just announced a plan to pay extra dividend to its shareholders. The unions are recommending temporary lay-offs, where necessary, instead of diret dismissals. The cabinet minister responsible for government investment requested an explanation for the restructuring, as the Finnish government is Metso's largest shareholder with 11%. Metso has since canceled the plan to reimburse additional dividends.
Updated, 13-11-2012: Metso has concluded negotiations and announced 536 redundancies, 136 of which will involve outsourcing and 152 retirements. As reported, 15 employees will be transferred to other units.
Eurofound (2012), Metso, Internal restructuring in Finland, factsheet number 74158, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/74158.