Perlos Corp. has reached an an agreement with its Finnish workforce to cut 573 permanent jobs in the country by early next year and consolidate its national operations in three plants in the northern Karelia region.
Following a strike by workers at Perlos, 100 jobs will be cut this month. The remaining reductions are set to take effect gradually before April 2007, according to NurmijÃ¤rvi, Finland-based Perlos.
Consolidation and the labor cuts are designed to achieve annual savings of 25 million euros ($32 million) beginning next year, according to the company.
The global telecommunications component manufacturer also announced the final closing of its plant in YlÃ¶jÃ¤arvi, Finland, with the loss of around 450 jobs. Some workers transferred to other plants, left voluntarily or retired.
The changes at Perlos reflect radical change in the global market for the company's products.
Perlos pointed to ``sweeping structural changes'' continuing since early 2005 in manufacturing services for the telecommunications industry. Manufacturing for mobile phone components is now centering in low-cost countries, close to the fastest-growing markets in Asia and Central America and central Europe. But Perlos faces overcapacity in Finland.
Perlos faced strike action at its Finnish plants in February, when it first revealed the latest phase of its restructuring program. Strikers complained about Perlos' handling of the negotiations and claimed management was pressuring union representatives.
Reorganization of the Finnish operations will see the Lehmonharju plant become a component manufacturing center with centralized injection molding, painting and assembly facilities. Painting operations currently at the NurmijÃ¤rvi unit will be switched to Lehmonharju and production linked activities at the NurmijÃ¤rvi site, which employs 120, will cease, according to the company.
Perlos' plant at Joensuu, Finland, will focus on manufacturing injection molds, metal products and other production tools as well as assembly technology.
Perlos' Kontiolahti, Finland, facility will continue making health-care components.
In February, Perlos announced it would close its loss-making U.S. telecom and auto components plant in Fort Worth, Texas, with the loss of up to 1,250 jobs. That plant's work is being switched to the injection molder's new low-cost facility in Reynosa, Mexico.