Raute concludes employee negotiations on permanent and temporary layoffs at its Finnish units, employing 383 workers

NASTOLA, Finland , November 19, 2010 (press release) – Negotiations at Raute Corporation in accordance with the Act on Co-operation within Undertakings concerning temporary lay-offs and termination of employments of salaried and senior salaried employees of Raute's Finnish units have been concluded. The negotiations, which were initiated on 8 October 2010, concerned measures to adapt the operations to the continuing weak demand and the fluctuation of the order book, and to improve the profitability.

As a result of the negotiations it was agreed that the company will terminate the employment contracts of a total of 18 salaried and senior salaried employees in its units in Nastola and Kajaani in Finland instead of 25 employees given in the employer's proposal. It was further agreed that a part of the targeted cost savings related to the required employee reduction will be implemented through internal changes in duties.

In addition, it was agreed that the adaptation measures of the salaried and senior salaried employees of Raute's Finnish units will be continued as temporary lay-offs of a fixed duration according to the financial situation and the workload. The temporary lay-offs of the hourly workers in the Nastola production plant will be continued according to the previously concluded adaptation measure results.

The concluded negotiation results will generate to Raute a cost of around EUR 0.5 million for the last quarter 2010. The adaptation measures will not have an impact on Raute's net sales and financial performance forecasts for 2010. Net sales for the entire year 2010 will increase and the operating profit will be positive.

At the end of September, Raute Group employed altogether 511 persons, of which the Finnish units accounted for 383 persons.

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