Challenges require changes: Valio starts negotiations

Helsinki / FI. (val) On 30 January 2024, Finland’s Valio Group will start negotiations on changes to the Group’s Finnish headquarters operations and the technical services supporting production, maintenance and factory services. A total of 1’170 people will be affected by the negotiations.

The change negotiations cover possible terminations of employment contracts and substantial changes to the terms and conditions of employment, such as changes in job descriptions and the content of job tasks. Potential redundancies will affect up to 130 people, and planned substantial changes to the terms and conditions of employment will affect up to 135 people. Valio employs a total of approximately 4’300 people, 3’700 of whom work in Finland. The negotiations are based on production and financial reasons resulting from the restructuring of operations. The general global economic situation is currently weak and this is also reflected in Valio Group’s business.

(Photo: Valio Group)

«The operating environment has been very challenging for us for a long time. The change negotiations are driven by a number of factors: rising costs in Valio’s own operations, weakening demand for consumer products and falling global prices for industrial products. All these factors have challenged our profitability. Unfortunately, these are the reasons why we have to enter into change negotiations,» says Marianne Tammela, Director of People, Strategy and Innovations.

Around 3’400 dairy farms are owned by Valio through cooperatives, and Valio pays the farms the proceeds of its business. «Through profitable business operations, we ensure the viability of our owners, the dairy farms, and safeguard the continuity of Finnish food production. In the long term, it will also enable us to create jobs and livelihoods throughout Finland,» adds Tammela. The change negotiations are expected to last six weeks.