Solution reached in Leonia redundancies dispute

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An industrial dispute over "rationalisation" plans at Finland's Leonia bank was called off in June 1998, when the parties reached a solution which should halve result the planned number of forthcoming redundancies.

In spring 1998, the largely state-owned finance group, Leonia, announced a massive reorganisation and workforce-reduction programme (FI9805163N). An industrial dispute over plan was finally ended in June through negotiations between Leonia and the Leonia clerical staff organisation, an affiliate of the Financial Sector Union (Rahoitusalan Ammattiliitto, SUORA). The two sides have agreed on "rules of the game" which will prolong the talks over the rationalisation process; the period for negotiation over the planned closure of a major payment services centre will run until the end of 1998.

The number of clerical staff to be dismissed will be reviewed. As a result of the negotiations, the estimated personnel cuts over 1998-2000 now total nearly 200 people, compared with previous estimates of 400. According to the union, the number of personnel is already insufficient, while management, which is trying to make the bank more cost-effective, sees the cut in staff as the only solution.

The parties also agreed that the possibilities for retraining would be mapped and that training for new tasks both within and outside the bank would be started immediately. Concerning customer services, it was decided separately that in August 1998, two training schemes would be started, one of which is intended for the personnel of the payment services centre at the centre of the dispute, which will cease to operate in the spring of 2000.

"We see the result as legally binding and will watch to make sure that this agreement is being followed," says the chair of the clerical staff organisation, Jarmo Rantanen.