TVO's cooperation procedure concluded – 42 employees at risk to be made redundant

Teollisuuden Voima has concluded the personnel information and consultation process started in January. The process was related to the restructuring of the company's functionalities with the aim of improving cost efficiency to ensure TVO's competitiveness in the challenging electricity production markets.

Prior to the negotiations the need for personnel reduction was estimated to be 110 man working years at the most. In the end, however, only 42 persons will face the threat of layoffs. They include 21 senior salaried employees, 7 technical salaried employees, 6 industrial salaried employees and 8 workers. TVO's aim is to implement a significant part of the personnel reductions through various voluntary arrangements. The cooperation procedure covered almost all of TVO's personnel, approximately 700 employees.

Smaller than the anticipated reduction was achieved by the other planned actions which will improve cost efficiency. TVO has decided, among other things, to cut down the use of temporary employment contracts and external services. In addition, the number of personnel will be reduced in the next few years through natural staff turnover. With these measures TVO aims at achieving 15 million euro annual cost savings.

- We are developing our operation on a long-term basis to ensure our competitiveness also in the future. Our efforts designed to improve cost efficiency include centralisation of functions and dismantling of overlaps. The changes in the operational model also resulted permanent decline of the amount of work. Layoffs are unpleasant and difficult, but unavoidable. We aim at using all the best means available to support those who are made redundant, says Mr. Jarmo Tanhua, President and CEO of Teollisuuden Voima Oyj.

TVO has together with personnel representatives developed an action plan to promote employment; the execution of the plan will start immediately. Comprehensive outplacement services and voluntary severance packages are offered to the impacted employees. Coaching and support to handle the change is provided also to those who remain in TVO's employment.

For more information, please contact:

Jarmo Tanhua, President and CEO of TVO, tel. +358 2 8381 2000
(available from 12am till 2pm EET).

Teollisuuden Voima Oyj is a nuclear power company founded in 1969 for safe and reliable electricity production for its shareholders, Finnish industrial and energy companies. Nuclear electricity generated at TVO's Olkiluoto plant covers approximately one sixth of the yearly electricity consumption in Finland. Climate-friendly nuclear electricity not only benefits the Finnish society but also reduces the environmental impact of energy production.