Alma Media Corporation Stock exchange release June 13, 2011 at 14.55 (EEST)
COOPERATION NEGOTIATIONS WITHIN ALMA MEDIA'S PRINTING AND DISTRIBUTION OPERATIONS COMPLETED
Statutory cooperation negotiations related with the development and rationalising programme at Alma Media's printing and distribution unit, Alma Manu Oy, have been completed. As a result of the negotiations, the company will decrease the number of its workforce by 54 full-time work years and will close down its printing operations in the city of Pori. At the time the negotiations started, Alma Manu preliminarily estimated that the number of personnel in printing operations may decrease by a maximum of 32 full-time work years. In distribution, the decrease was estimated to be at most 50 full-time work years.
The operations of the Pori printing house will be closed down by the end of January 2012. The decision is attributable to the rationalising targets of the company and to the decision of the Satakunnan Kansa newspaper to change into tabloid format.
"To print a tabloid newspaper in Pori printing house would have required us an additional investment in the facility. As Alma Media is currently investing MEUR 50 to renew its printing facility in Tampere, investment in Pori unit would not have been financially reasonable. After the closing of the Pori printing house, Satakunnan Kansa will be printed in Tampere", says Helvi Liukkaala, Managing Director of Alma Manu Oy.
Due to the discontinuation of the operations of the Pori printing house, Alma Manu lays off 32 persons, of whom 12 have part-time job contracts, totalling 25 full-time work years. The lay-offs will take place in January 2012. To some of its employees in the Pori printing facility, Alma Manu can offer an opportunity to relocate to printing houses either in Tampere or in Rovaniemi. To those employees who cannot be employed in other units, Alma Manu will arrange outplacement training and support for re-employment. Alma Manu cooperates with employment authorities.
In distribution operations, the measures of the development and rationalising programme will lead to a decrease of 29 full-time work years in the Pirkanmaa and Satakunta delivery regions. The measures to rationalise the distribution operations will mainly take place in 2012.
As a result of the cooperation negotiations, one person in Alma Manu's management will be laid off. No officials or technical officials will be laid off. However, the job descriptions and locations of the officials and technical officials will undergo changes that will be effective in autumn 2011.
The negotiations, initiated in April, encompassed Alma Manu's entire personnel at the printing facilities in Pori and Tampere as well as the distribution operations in the Satakunta and Pirkanmaa regions, a total of approximately 1,000 employees. The negotiations concerned the planned shutdown of the Pori printing facility and the planned rationalisation and reorganisation of the Satakunta distribution operations, the printing operations at the Tampere printing facility and the Pirkanmaa distribution operations as well as the motivation, effects and alternatives of possible measures affecting personnel.
In 2010, Alma Manu employed 1,135 people in the Pirkanmaa, Satakunta and southwest Lapland areas. Of them, 962 employees worked in newspaper delivery.
ALMA MEDIA CORPORATION
Vice President Communications and IR
Helvi Liukkaala, Managing Director, Alma Manu Oy, tel. +358 10 665 3009
Distribution: NASDAQ OMX Helsinki, principal media
Alma Media in brief
Alma Media is a dynamic media company whose best-known products are Aamulehti, Iltalehti, Kauppalehti and Etuovi.com. Alma Media employs approximately 2,800 professionals. The company's net sales in 2010 totalled MEUR 311.4 with an operating margin of 13.9 per cent. Alma Media's share (ALN1V) is listed in the NASDAQ OMX Helsinki Exchange. Read more at www.almamedia.fi