Crane manufacturer in temporary layoff talks

Konecranes said that because of the business disruption caused by COVID-19, it has invited Finnish works council representatives to negotiations regarding temporary layoffs which would cover all of Konecranes’ Finnish operations, some 2,000 employees in total. The layoff period is expected to be “up to 90 days at most”.

The company said: “Due to the pandemic, countries around the world have imposed extensive restrictions on the daily conduct of people and businesses. As a result, many of Konecranes’ customers are limiting access to their premises, affecting Konecranes’ ability to complete the installation of new equipment and perform certain service operations.

“Moreover, Konecranes’ own manufacturing operations have been impacted by the significant and increasing measures to contain the pandemic. Reflecting this development, on March 26 Konecranes updated its demand outlook and withdrew its financial guidance for full-year 2020.”

Konecranes said it seeks to explore all possible temporary measures to manage its costs. Aside from its confirmation that layoffs will be up to 90 days, it said it “cannot estimate at this stage what those measures will ultimately be”.

In addition to Finland, Konecranes has already been active in reducing costs across the full scope of the company’s global operations.