Global vehicle manufacturer Škoda has announced it has invited employees at its Finnish manufacturing plant to change negotiations, potentially leading to a reduction in workers.
Škoda Transtech, as part of the Škoda Group, has invited employees in accordance with the Finnish Cooperation Act, to change negotiations regarding organisational changes at the production plant in Finland due to long-term uncertainty over a tender for the supply of new trams for Helsinki.
Škoda says it considered the contract to be one of the key projects that would’ve secured work for a significant part of its local workforce if successful.
However, Škoda has been excluded from the tender, with the brand taking into account its future production planning.
“As it is not possible to maintain jobs at the current level over the long term without adequate workload, the company may be forced to terminate employment contracts,” Škoda says in a statement.
“During the change negotiations, possible actions may include measures such as terminations, organisational restructuring and changes in working hours, modifications to job roles and responsibilities, and part-time arrangements.
“The permanent reduction in workforce is estimated to affect a maximum of 200 employees, which is one third of its workforce in the Otanmäki production facility employing 600 employees.”
Škoda says the eventual changes won’t impact Škoda Transtech’s ability to continue production, with the brand ensuring it has enough to ensure the smooth delivery of all existing and future projects.