SSAB cuts Raahe costs without reducing workforce

SSAB has concluded change negotiations at its Raahe plant in Finland after identifying solutions that can cut fixed costs by €10 million ($11m) annually without reducing the workforce, the steelmaker says.

Negotiations started in September primarily due to continued weak demand (see Kallanish passim). The solutions found include, for example, the development of working practices, job rotation and increasing multi-skills.

“Together we were able to add solutions to increase flexibility, mobility and versatility in the organisation, for example, which is what we set out to pursue. The outcome of the change negotiations will also help us with preparations to switch to fossil-free steel production,” says Raahe site manager Jarkko Matkala.

The change negotiations affected approximately 2,400 people. In total, SSAB employs around 4,700 people in Finland.

Adam Smith Poland