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Marimekko ends consultative negotiations on Finland units
27
Mar '14
The consultative negotiations started by Marimekko in February 2014, which applied to all operations in Finland with the exception of the staff at the textile printing factory in Helsinki, have been concluded. 
 
At the outset of the negotiations, the overall downsizing requirement was estimated at a maximum of 55 employees. The negotiations, however, reached the conclusion that the targeted savings can be achieved with considerably fewer job terminations.
 
A reorganisation of functions and operational streamlining will lead to the elimination of 22 jobs. It was also decided to convert at most 35 employees' jobs in company-owned stores to a part-time basis or to reduce the agreed number of working hours. 
 
Work will also reduce when fixed-term employment contracts will not be renewed. The scope of the negotiations covered 378 employees, 151 of whom were working in stores in Finland. Support will be given for the re-employment of those losing their jobs, and Marimekko will offer training for job-seeking and other services.
 
"The actions to be taken will boost our competitiveness in the long term and we will improve our operations in such a way that in the future we will be able to respond to the challenges of a changing business climate and the needs of our international clientele even better than before. 
 
“Our aim is to update processes linked in particular to design, product development and procurement. At the heart of it all are more attractive products and getting them from the drawing board into the stores more easily and quickly," says Mika Ihamuotila, President and CEO.
 
"It is always hard to reduce personnel. However, through the shared creativity and willpower of the management and employees, we were able to avoid large-scale redundancies and we succeeded in making savings through arrangements of working hours," Ihamuotila continues.
 
With the downsizing and working hour arrangements in Finland, the aim is to achieve annual cost savings of an estimated total of EUR 1.5 million. The savings will be realised gradually as of the second quarter of 2014, and the full impact of the profit improvement will show as of the last quarter of this year. In connection with the downsizing, the company will post a nonrecurring cost provision of EUR 0.4 million for the first quarter of 2014.


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