Empower to start cooperation procedure

Empower has sent an invitation to cooperation procedure to the representatives of all employee organisations in the company. The cooperation procedure is started for production and financial reasons. The cooperation procedure will not apply to the subsidiary Empower IM Oy.

The cooperation procedure invitation also mentions certain functions in Industry and Transmission Network Project divisions where the need for layoffs is unlikely.

The downward economic trend prevalent in Finland will continue and its effects will be felt forcefully in Empower's business sector. Many of the company's customers have decreased or postponed their investment this year. Consequently, Empower will have to adapt its operations to the market situation and seek more savings in addition to measures already implemented.

It is estimated that the amount of work will decrease towards the end of the year and Empower plans to layoff a significant share of its personnel for two weeks at the turn of the year. Because there is a great deal of seasonal variation in Empower's business, the company is forced  to also look for more permanent flexibility solutions.  The employer's plans for fixed term and until-further-notice layoffs will be discussed during the cooperation procedure the extent of which would at maximum 1,200 person months and permanent reduction would be at maximum 130 persons.

"The downward economic trend and scarcity of investments are tormenting all companies in the sector. The development of Empower's result and cash flow have been good during the second and fourth quarters. Despite this, Empower unfortunately can no longer afford to wait for a better economic trend, but has to react now," says Eero Auranne CEO of the Empower Group.

Further information:
Eero Auranne, CEO
tel. +358 29 020 011