Paper and forestry products company UPM announced a plan to cut 50 jobs at its Raflatac label manufacturing plant in Tampere next year. The company says the job cuts are required to improve productivity in the face of falling demand for label material in Western Europe. UPM's Tampere plant currently employs 240 workers. UPM is cutting back label manufaturing at other plants in Europe by closing production lines. The program will affect a total of 340 employees in Finland, Britain, France, Germany and Hungary, accounting for about one-fifth of Raflatac’s European payroll. The Tampere plant has already retrenched 80 workers over the last few years. The latest round of severance talks will begin Monday and should end by mid-January 2009. It is hoped that these efficiency measures will net the company annual savings of about 25 million euros. The current programme of restructuring is expected to conclude by the end of next year. Earlier this month UPM confirmed that that it would be mothballing pulp processing plants at Kajaani and Tervasaari by the end of this year. Retrenchment Negotiations Ongoing in Rauma and Pietarsaari
Meanwhile reports that employee severance talks had been initiated in September were confirmed Wednesday.
UPM plans to reduce the workforce by 150 at its Rauma facility by the end of 2009. Staff were reportedly informed of the layoff plans via an internal e-mail message on Wednesday.
Discussions relating to the retrenchment of 110 factory workers and 40 clerical staff will begin on Monday. The discussions will also consider plans to temporarily layoff off all staff.
UPM will also begin severance talks in Pietarsaari in about one week's time. The goal will be to fast track plans to cut 50 jobs there. Currently UPM employs 530 workers, and earlier plans called for the severing of 500 jobs.
Negotiations at Rauma and Pietarsaari are expected to last six weeks.
