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Negotiations concluded regarding staffing at SSAB in Borlänge and Virsbo
September 11, 2015 13:15 CEST 6 min read
SSAB and the labor unions have concluded negotiations regarding the organization at the production units in Borlänge and Virsbo, Sweden. The staffing plans that have now been completed provide for a total of approximately 270 fewer jobs. In Borlänge, most of the redundancies will take place according to the security and flexibility (flexicurity) agreement.
SSAB announced plans for changes in production in Borlänge on February 2. These plans entailed closure of the galvanizing and color-coating lines and transferring the manufacture of the products made on these lines to other units in Finland and Sweden. In total, it is estimated that the closure will involve the loss of 210 jobs, of which 170 are blue-collar and 40 white-collar.
As regards blue-collar employees, the company and the unions have agreed to apply the so-called flexicurity agreement, (in Swedish called ToF). This agreement applies to staffing flexibility due to business cycles or temporary cuts in production.
On May 12, SSAB announced that line pipe production in Virsbo would be discontinued in the fall. These negotiations have now been concluded and the new organization will result in the loss of a total of 54 jobs, while 44 jobs will remain.
SSAB has also announced plans to transfer tube production in Borlänge to other units within the Group. Nine employees are affected by the change and negotiations have commenced.
These measures are included in the ongoing efficiency and flexibility program which constitutes a part of the cost synergies identified in connection with the combination between SSAB and Ruukki in 2014.
For more information, please contact:
Marie Elfstrand, Director Media Relations and PR, tel. +46 8 45 45 734
For pictures, please visit SSAB’s Media bank