Valio looks at restructuring workforce
Valio, a Finnish dairy and food company, has announced that it will commence change negotiations impacting Valio’s Finnish headquarters functions, technical services, maintenance, and factory services. Approximately 1,170 employees fall within the scope of these negotiations, which will last six weeks as of 30 January.
The discussions during the change negotiations will address potential workforce reductions and significant alterations to employment terms and conditions, including modifications to job descriptions and job duties. It is estimated that the potential workforce reductions may affect up to 130 individuals, while planned alterations to employment terms and conditions could impact up to 135 employees. Valio currently employs around 4,300 individuals, with 3,700 of them based in Finland.
The rationale behind these negotiations is primarily linked to production and economic factors, necessitating operational restructuring.
Valio’s business operations have been operating in a challenging global economic environment. Factors contributing to these negotiations include increased operating expenses for Valio, declining consumer product demand, and a decrease in global prices of industrial products, all of which have placed significant pressure on profitability.
Marianne Tammela, executive vice president of the people, strategy, and innovations function at Valio, stated, “The operating environment has been very challenging for us for a long time. There are several factors behind the change negotiations: the increase in Valio’s own operating expenses, weakening demand for consumer products, and a fall in global prices of industrial products. All of these factors have challenged our profitability. Unfortunately, for these reasons, we are forced to initiate change negotiations.”
“Through profitable business operations, we ensure the vitality of our owners, i.e. the dairy farms, and we secure the continuity of Finnish food production. That enable us in the long run to also create jobs and livelihoods around Finland,” notes Tammela.
Valio is a cooperative owned by approximately 3,400 dairy farms, and it distributes its operating profits to these farmers.