Metso calls potential aggregates division layoffs seasonal

Finland-based equipment maker Metso Corp., which makes machinery for metals and aggregates production, says it has started negotiations with its workforce in Tampere, Finland, so it can enact temporary layoffs of up to 90 days for some employees

“The order backlog at Metso’s Aggregates Tampere plant is low, and finished product inventories are at a high level,” the company says in a late-August statement.

Metso characterizes the fall as a typically slower season for the aggregates business, so no rapid demand improvement is expected before year end. While some global equipment companies have referred to North America as a bright spot for sales, Metso does not see salvation coming from that direction in the near term.

Referring to its tracked crushing, screening and recycling equipment, Metso says, “Demand for mobile equipment has been low globally, and the distributors’ high inventory levels in North America are impacting the need for new machines.”

Thus, the company says it needs to adjust its capacity to the temporary decrease in workload and to achieve cost savings.

To that end, Metso says it will start union negotiations on temporary layoffs in the Tampere crushing equipment plant business unit, with approximately 560 people in the negotiation scope.

Metso predicts the length of the layoffs could be up to 90 days and that the layoffs would be implemented late this year and into the spring of next year.

“The negotiations will cover the grounds, impacts and alternatives of the possible measures,” Metso says.

The company predicts the negotiation period will last at least two weeks once an initial proposal has been given, and decisions on possible layoffs will be made soon once the negotiations are concluded.

“The extent and duration of the layoffs will depend on the development of order volumes and the respective impact on the individuals’ and departments’ workloads, as well as on the need to adjust operations and costs," Metso says. "Possible layoffs may affect all personnel and personnel groups involved in the negotiations.”