Co-determination negotiations on the closure of the Seskarö sawmill ended

Co-determination negotiations according to the Swedish Co-Determination Act (MBL) between Setra’s management and the trade unions on the closure of the Seskarö sawmill outside Haparanda ended today without an agreement being reached.

Negotiations concerning the closure of the Seskarö sawmill have been ongoing since the middle of December 2007. Based on the short supply of raw materials in the region, Setra decided at that time to focus operations in northern Norrbotten at one of the company’s two sawmills in the area. The decision involves increased sawing and value-added processing at the unit in Kalix, and the closure of the sawmill in Seskarö outside Haparanda.

“From the company’s perspective, we can state that no substantial new information has emerged during the four-month negotiation process, and so we see no reason to review the structural decision,” says Kent Torwald, Setra’s President and CEO. “We have therefore ended the negotiations.”

“One important issue, on which we have been in agreement during the negotiations, is the assessment of the raw material situation in the region and the need to cut back at least the production volume proposed,” says Kent Torwald. However, Setra’s management and the trade unions have differing views concerning the closure of Seskarö. For Setra, strategic aspects such as increased value-added processing, reduced transport costs and lower environmental impact are important elements in the decision to concentrate operations in northern Norrbotten at the unit in Kalix.

As the negotiations ended without an agreement being reached, Setra is now waiting for word from the trade unions as to whether they intend to proceed to central negotiations before the closure of the sawmill gets under way. Setra will continue discussions as to what general and individual measures can be taken to ease the changeover process once the final closure decision has been made. Sawing operations at Seskarö are scheduled to cease in the summer.

In view of the current market situation, it is not appropriate at this time to start the planned second shift at Setra’s unit in Kalix.