Lay-offs may last 12 months, Nokian confirms
In November, Nokian Tyres reported weakening demand for its heavy tyres and its intention to scale back production. Following statutory negotiations, which ended on 12 December, Nokian Heavy Tyres Ltd confirmed it will alter the main working pattern for heavy tyre production to a discontinued five-day, three-shift model and temporarily lay off employees. Around 260 employees will be laid off for a maximum of 12 months, with lay-offs taking place during 2012 and the duration for each employee decided upon according to their work tasks and the development of order intake over the course of the year.
The tyre maker reports the lay-offs will save the company salary costs of approximately 80 man-years. Part of the adjustment measures will be carried out through pension arrangements.
Nokian Heavy Tyres Ltd produced approximately eight per cent of the Nokian Tyres Group’s Net sales and approximately five per cent of the group’s operating result in the first nine months of 2011.
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