SRV Group Plc's codetermination negotiations concluded
SRV Group PLc Stock Exchange Release 26 March 2009 8.30 a.m. EET
SRV Group Pl has concluded the codetermination negotiations concerning the
Group's Finnish companies. As a result of the negotiations SRV avoided
redundancies and will lay-off 60 persons.
Negotiations covered the managerial staff and white-collar employees. The
initial need for reduction applied to 130 persons, at the most, of which
approximately 50 in the units abroad.
In addition to lay-offs the company will negotiate with the employee groups to
trade additional holiday pays for time out. In the same connection pension
arrangements will be made, as well.
"These and other saving measures bring us annual savings of around EUR 6
million. The need and extent of possible additional lay-offs will be determined
during the ongoing year depending on the market development", says Eero
Heliövaara, President and CEO of SRV. Similar process in the company's units
abroad will be brought to finish during spring.
The underlying reason for the adjustment measures is the continued recession of
the construction market. Tightening of the market has reflected on construction
industry in deferment of projects and decrease in start-ups of construction
production. Moreover, residential sales have remained on low level.
SRV Group Plc
For further information, please contact:
Eero Heliövaara, president and CEO, tel. +358 (0)20 1455 202
Nasdaq OMX Helsinki