FORTUM STREAMLINES ITS OPERATIONS – STARTS UNION NEGOTIATIONS

Today Fortum informed the trade unions in Sweden and Finland about the estimated impact on personnel as a result of the new pan-Nordic business approach. A total of some 900 employees will be affected by either elimination of overlapping activities or outsourcing. Negotiations with the unions will start in August, and in order to reduce uncertainty Fortum’s ambition is to conclude them as soon as possible.

 

Out of the affected employees, approximately 150 are expected to retain their jobs through outsourcing, the rest (about 750) is expected to become redundant. About one third of the total number is expected to be in Finland and the rest in Sweden, although the exact number and their distribution within the different units is not yet fully defined. The final outcome of the negotiations will be communicated in due course and the implementation of the negotiated program is planned to be finalised during 2003.

 

We aim to retain and strengthen our market position in order to become the most competitive player on the Nordic market. With this in mind we have launched a new approach to the business structure and we have also outlined new ways of working, Tapio Kuula, President of Fortum’s Power and Heat Sector, said. We anticipate a substantial value creation, 100 million Euros annually, from combining Birka Energi and Fortum. Part of the value potential will be realised through savings from minimizing overlapping resources and functions. We also want to build new partnerships and outsource activities that are not our core business and can find a more natural home outside of Fortum, Tapio Kuula continued.

 

The work to transform Fortum’s Power and Heat businesses is in full progress and the pan-Nordic organisation will be operational July 1.

 

Fortum Oyj

Corporate Communications

 

 

For further information, please contact:

Mr Tapio Kuula, President, Power and Heat sector, tel. +358 10 452 4112

Mr Mikael Frisk, Senior Vice President, Human Resources, tel. +358 10 452 4111