Negotiations on the order of redundancy have been completed and no white-collar staff will be laid off.
“We are very pleased to report that we believe personnel cutbacks can be realized without any layoffs due to lack of in the parent company. It has been very important for us to resolve the situation in a way that is best for LKAB while showing respect for the individual," says Grete Solvang Stoltz, Senior Vice President, Human Resources, LKAB.
As part of LKAB's programme of cost reduction, the company's senior management proposed in February 2015 that LKAB should reduce the workforce by 400 positions up to the close of the first quarter of 2016. Approximately equal numbers of blue-collar and white-collar employees are affected by the staff cuts.
Negotiations on the order of redundancy for white-collar employees that have taken place during the autumn were concluded on Friday 6 November. Retirement agreement offers, job vacancies that have not been filled, reassignments and the freeze on external hiring have meant that no layoffs have had to be made to realize the personnel reduction.
The white-collar employees who have accepted the retirement offer number about 30 in all and will retire during the period December 2015 to March 2016.
Several reassignments remain to be made, but are expected to be completed 20th of November. This means that an employee whose current position is redundant within LKAB's new organization is offered a new equivalent position elsewhere in the organization.
“We have noted a certain increase in the number of people who have left the company voluntarily during the year, which is regrettable but understandable. At the same time, this has meant that several positions within the organization in question can be used to reassign employees who are redundant elsewhere,” says Åse Juhlin, department manager, Human Resources, and project manager for the personnel project.
Even if no layoffs are forthcoming at present, work continues to achieve a reduction of 400 personnel. According to our assessment, most of the remaining redundancies can be made by terminating temporary employment. This work is continuing concurrently with negotiations on the order of redundancy but is now moving into a more intensive phase.