As announced in stock exchange release on 8 February 2017, HKScan initiated a review of the Group’s operating model.
The potential impacts on personnel of the planned operating model renewal and planned efficiency upgrades were assessed in Group-wide statutory negotiations that were carried out in compliance with procedures legally stipulated in each country. The negotiations concerned white-collar personnel, senior white-collar personnel and management in all HKScan countries.
The Group has now finalized the review process, including country-based statutory negotiations. During the review process, the Group has received valuable insights and proposals from all the involved participants of the process, and the negotiations were conducted in good co-operation and solution oriented manner in all countries.
New operating model and its impact on personnel
Based on the review and statutory negotiations, the Group has now decided to embark on a partial re-organization of its operations and to establish an operating model, which will be constructed based on Operations, Concepts and Categories, Market Areas: Finland, Sweden, Denmark, Baltics, International & Biotech, as well as Business Services. New way to operate will ensure a sharper focus on consumers and customers, improve the efficiency and transparency of the food value chain from farm to fork, and the productivity of internal processes.
The decided changes on the operating model will have impacts on existing employment relationships and their terms. The Group-wide headcount reduction will be 160 persons, of which 106 will be terminations of employments by notice or through outsourcing, and 54 will be based on other reasons, such as not renewing fixed-term employments and not replacing positions, from which employees have resigned by themselves.
The Group will now initiate the implementation of the new operating model. It will be in place on 1 June 2017.
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