Elisa is a provider of telecommunications services and solutions, employing approximately 7,300 people. The company announced on 22 October 2003 that it will cut 900 jobs by the end of 2003 for productivity and restructuring reasons. The company has started the compulsory six-week consultative talks with its staff determined by the Act on Cooperation within Undertakings (FI0309203T [1]). The negotiations will apply to the major part of the activities of the group's 100%-owned subsidiaries and part of the parent company's functions. The company estimates that the redundancies will save EUR 40 million in 2004 and about EUR 80 million in the following year.[1] www.eurofound.europa.eu/ef/observatories/eurwork/articles/thematic-feature-works-councils-and-other-workplace-employee-representation-and-participation-4
In October 2003, the Finnish-based telecommunications company, Elisa, announced plans to cut 900 jobs from its 7,300-strong workforce. The news brought strong reactions from staff and trade unions and provoked debate about large companies' employment policies and the Act on Cooperation within Undertakings, which provides for workforce consultation on issues such as job losses.
Elisa is a provider of telecommunications services and solutions, employing approximately 7,300 people. The company announced on 22 October 2003 that it will cut 900 jobs by the end of 2003 for productivity and restructuring reasons. The company has started the compulsory six-week consultative talks with its staff determined by the Act on Cooperation within Undertakings (FI0309203T). The negotiations will apply to the major part of the activities of the group's 100%-owned subsidiaries and part of the parent company's functions. The company estimates that the redundancies will save EUR 40 million in 2004 and about EUR 80 million in the following year.
In 2000, theHelsinki Telephone Corporation merged withHPY Holding Corporation, and the company adopted the nameElisa Communications Corporation. Elisa has expanded all around Finland by buying local operators, and now also has activities in Germany (Elisa Kommunikation) and Estonia (Radiolinja Eesti). The planned workforceoccasion reductions will not take place in the foreign operations on this occasion, but Elisa’s German staff has already been cut by 200. Elisa now plans to merge many of its subsidiaries into the parent company, the aim being to simplify the Elisa group's corporate structure and end structural overlapping.
The news of workforce reductions was welcomed by investors but brought angry reactions from the staff and led to an active discussion in the media about the employment policy of major companies. Elisa's shares went up by about 14% in the day's trading following the announcement, while employees went on strike for several days in protest at the redundancy plans. The personnel representatives also boycotted the first meeting under the compulsory consultative negotiations. The Central Organisation of Finnish Trade Unions (Suomen Ammattiliittojen Keskusjärjestö, SAK) called for immediate negotiations between employers' organisations and trade unions in order to curb the current wave of redundancies, as there have been already numerous major workforce reductions elsewhere in the economy during 2003. The Confederation of Finnish Industry and Employers (Teollisuus ja Työnantajat, TT) rejected this proposal, stating that staffing decisions are made internally in companies and no outside influence is possible. However, the events might promote reform of the Act on Cooperation. Just a few days after the Elisa redundancies were announced, the Ministry of Labour appointed a tripartite committee to plan a renewal of the Act.
Eurofound recommends citing this publication in the following way.
Eurofound (2003), Telecom operator Elisa cuts 900 jobs, article.
