09.12.2008

Cargotec completes employee negotiations

Cargotec -Hiab has completed its employee co-operation negotiations in Finland which aim to cut costs and end manufacturing at the Hiab plant in Salo.

The negotiations will see Cargotec reduce its workforce in Finland by 271 employees. The workforce will also be reduced by cutting down the number of external employees and by not employees who retire or leave. Additionally, temporary employment contracts will not be renewed when they expire.
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Hiab crane production at Salo will gradually wind down during 2009 as part of a plan to consolidate European manufacturing into three factories. The remaining functions - product development, sales and marketing, finance and management, after sales and spare parts - will be reorganised according to the changed production structure. The efforts to find alternative solutions for the Salo factory with external parties will continue. Cargotec currently employs around 1,700 in Finland.

Cargotec has on going restructuring measures in several other countries and is looking to make sufficient savings to add €25 million to the company’s bottom line.