Honkarakenne Oyj and salaried employees have concluded codetermination negotiations, which have resulted in 18 redundancies due to production and financial reasons as well as to company reorganization. Agreement has been reached with a further seven people on retirement, longer-term lay-offs or on their becoming independent representatives. Fixed-term employment contracts will not be renewed. Moreover, four people have left the company.

Negotiations with salaried employee representatives began in the autumn due to the weakening of the company’s market situation. The personnel changes carried out apply to the entire Group in Finland and its subsidiaries abroad. (Stock Exchange release, during trade)

Honkarakenne announced yesterday conclusion of co-determination negotiations. As a result, the company reduces headcount by 29 persons, which accounts for about 7% of personnel. Earlier Honkarakenne has temporarily laid-off its entire staff in order to adapt lower volumes. In addition, Rakennustutkimus (RTS) said recently that sale of single-family houses is down by 40% YoY in January in Finland. Finland’s share of the company’s net sales is around 40%. eQ Bank doesn’t expect quick turnaround in demand.

*Neutral news for Honkarakenne

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