Nokian Tyres: Layoffs, dismissals at Finnish plant
Nokian Tyres is responding to what it calls the “weak development of the European car and tyre market” with plans to reduce employee numbers at its Nokia production facility in Finland. It appears Nokian Tyres is looking to lay off approximately 50 workers and additionally dismiss an unspecified number on a temporary basis.
The tyre maker says it is entering into employee cooperation negotiations regarding production and maintenance positions at the plant in Nokia. It adds that these negotiations “concern approximately 500 people” but do not involve its Nokian Heavy Tyres Ltd. operation.
“The plan is to achieve the necessary level of adjustment by using lay-offs and temporary dismissals. The estimate of the required reduction of staff is some 50 people,” shares Nokian Tyres in a statement. “In addition, the negotiations may result in temporary dismissals of at most 90 days per year. The exact number of people being temporarily dismissed and the duration of the temporary dismissals will be determined during the course of the negotiations.”
The negotiations will begin on 11 September 2019 and last for a minimum of six weeks.
This latest announcement signals a reversal of fortunes for Nokian Tyres’ car tyre production in Finland. In April 2018, the company announced plans to increase production capacity for passenger car tyres at the Nokia factory by approximately 30 per cent with the addition of a fourth shift. Nokian added that this capacity increase would be accompanied by the hiring of more than 80 new workers. The intention was to change from three-shift production five days a week to four-shift production six days a week at the start of this year.
According to Nokian Tyres, the factory in Nokia accounted for 16 per cent of the company’s passenger car tyre production last year; the remainder was manufactured in Russia.