Wednesday, August 24, 2022
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Raute has initiated change negotiations, in accordance with the Act on Co-operation within Undertakings about the salaried and senior salaried personnel in Finland. The purpose of the negotiations is to adjust business processes to Raute’s new market environment. The company is currently winding down its Russian business, which made up a sizeable portion of Raute’s order book before Russia’s armed aggression against Ukraine, as it was previously revealed. Strong cost inflation has increased the company’s cost base, which has had a detrimental influence on the profitability of the business.
In June, Raute announced that it would intensify its development strategy in order to increase its competitiveness and profitability in 2022 and 2023. The adjustments will affect all salaried and senior salaried employees of Raute Finland with a length of no longer than 90 days, in accordance with the settlement achieved during negotiations. The duration of temporary layoffs might be extended over a longer defined length of time or reduced to a shorter workweek.At the end of March 2020, Raute Group had a total of 767 employees, 513 of them were based in Finland. These conversations for cooperation involved all 333 of Raute Finland’s salaried and senior salaried personnel.
“We have worked further to identify the needed steps to strengthen our development program and regretfully have to also downscale our workforce to adapt to the current, lower volume of operations. With this announced downscaling we estimate to achieve annual savings of approximately EUR 1.5-2 million. In addition, we have initiated other actions targeting efficiency improvements and cost savings of several millions”, says Petri Strengell, Interim CEO of Raute Corporation.
The newly established negotiations do not suggest any modification to the previously disclosed outlook for 2020. Raute’s operating profit is anticipated to decline noticeably year over year, and net sales are anticipated to decline compared to 2019.
Tags: Raute, Raute Corporation, woodworking and manufacturing, woodworking and processing, woodworking event, woodworking industry, woodworking UK
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