Finnpilot’s change negotiations have ended: the company will adapt its operations to correspond to the reduced pilotage demand
Finnpilot Pilotage Ltd has completed the change negotiations that began on 24 October 2023. The change negotiations were initiated for financial and production-related reasons and concerned the entire personnel, 294 employees, of Finnpilot. As a result of the change negotiations, Finnpilot will dismiss or indefinitely lay-off a maximum of five employees. Additionally, temporary lay-offs for a fixed period will be realised as a means of saving a total of 17.5 person-years during 2024. The cost impact of the savings will be approximately 1.3 million euro.
The need for savings in 2024, as regarded personnel, was estimated to be approximately 30 person-years at the start of the negotiations. This need increased during the negotiations as the traffic volume forecast for 2024 was revised. Part of the need for reductions was covered by retirements that took place during the negotiations as well as, for example, by enhancing the existing transport activities.
The lay-offs for a fixed period will be an average of four weeks per employee.
‘The aim of the measures initiated as a result of the change negotiations is to adapt our company operations to the new traffic situation and improve our profitability. In addition to the measures targeting personnel, we are also endeavouring to find savings from all other aspects of our activities’, states Kari Kosonen, CEO of Finnpilot.
‘The intention is to realise the lay-offs flexibly during 2024 so as to have as minimal an impact as possible on our customer’s activities’, Kosonen adds.
The weakened economic situation mirrors the development of Finland’s foreign trade
The deceleration of Finland’s foreign trade has had a strong impact on the volume of traffic requiring pilotage services. The financial situation of Finnpilot Pilotage Ltd has declined significantly during the current year. The year 2023 will be the company’s fourth year in a row that is ending with a loss. The traffic volume and resulting company profitability have been affected over recent years by, among other issues, the increase in energy prices and other costs as well as the decrease in cruise ship visits to Finland and complete termination of traffic in the Saimaa region as a result of the COVID-19 pandemic and Russia’s war on Ukraine.
Further information:
Kari Kosonen, CEO, tel. +358 (0)40 741 4625