Elimination of 60% of jobs at Nokia factory has severe implications for Salo economy

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A long line of Nokia employees queue up to board chartered buses after an event organised for them at the Salohalli sport arena.
      The buses are taking them back to their jobs at the Nokia factory in Salo. They have just been told that about 1,000 people employed in the manufacture of mobile phones are to be terminated.
     
Executive vice president Niklas Savander of Nokia Markets says that the assembly of handsets is being transferred to Asia, because that is where almost all of the components used in Nokia’s smartphones are manufactured.
      In addition to Salo, jobs are also being cut at the Nokia factories in Komárom, Hungary, and Reynosa, Mexico. The three plants will henceforth concentrate on customising handsets to the needs of the various customer groups.
     
“This is not exactly disastrous news. We were expecting this”, said Matti Hirvonen, one of the operators.
      “The number came as a surprise. I was expecting that there would be fewer. Now it’s back to the factory to eat, then I’ll get my son back home from day care, and spend a completely normal day”, said Henri Haanpää.
     
The Finnish government decided on Wednesday to start preparations for a new national mobile technology strategy. The aim is to make sure that Finland does not lose skills and expertise in the field of mobile telephony.
      Finland is losing nearly 5,000 jobs in IT development, mainly as a result of job cuts at Nokia and Nokia Siemens Networks, and now 1,000 jobs are going from manufacture.
     
“We are trying to think of ways to keep Finland from falling behind”, says Minister of Labour Lauri Ihalainen (SDP). He spoke to Helsingin Sanomat while en route to Salo on Wednesday afternoon.
      Prime Minister Jyrki Katainen (Nat. Coalition Party) said that the government would work with companies to consider how new growth could be established for the mobile and telecommunications cluster. “This is a big challenge”, he says.
     
Shop steward Anne Malm says at the factory gates that she is shocked at the number of jobs that are being cut.
      “Our employees have always given all that they have. I was personally angered because I know that this isn’t about us.”
      Mayor Antti Rantakokko says that it has been a week of happy and sad news for Salo. “At the beginning of the week we got a president from Salo, and now this came on top of it.”
     
Salo had prepared for the situation, but “ we have not had any information about the scale or the timing”, said Rantakokko at a press conference organised by the city and the local Employment and Economic Development Office.
      Those who are losing their jobs are being offered training and support for applying for work. An office is to be opened at the Nokia facility where employees will be helped in questions related to the support programme.
      Salo already has 3,000 unemployed. The Salo region was declared an area of sudden structural change in 2009 when the first cutbacks at Nokia were announced. In 2009-2011 job cuts affected 2,000 people. The local unemployment rate is shooting up from 11.5 per cent to 16 per cent.
     


Previously in HS International Edition:
  Up to 1,000 jobs to go from Nokia factory in Salo (8.2.2012)
  Nokia Siemens Networks cutting 1,200 jobs in Finland (1.2.2012)
  Nokia Q4 result exceeds analysts´ expectations; stock up in Helsinki following announcement (26.1.2012)

Helsingin Sanomat