Telecommunications operators offer severance benefits to cushion job cuts

Elisa encouraging "voluntary" departure

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The telecommunications service provider Elisa, which is planning sharp staff reductions, is offering generous severance benefits to personnel who leave the company voluntarily.
      The procedure is similar to that which has been offered to Finnish employees of TeliaSonera.
      Elisa launched legally mandated negotiations on Monday aimed at cutting about 80 jobs in the company’s middle management. Those facing possible termination were urged on the company’s intranet to consider voluntary resignation, in order to take full advantage of the benefits being offered.
      The company said that the severance package would not get any better, and that more job cuts are expected in July 2005.
     
The extraordinary severance pay would range from five weeks’ to six months’ pay, depending on the length of service, and whether or not the person is required to work during the time of notice. The package is slightly better for those who are expected to stay at work until they leave.
      Under Finnish law, the severance period varies from two weeks to six months, depending on the length of employment.
      For those who have worked for Elisa for less than a year, the company is offering an extra benefit of 2-10 weeks’ pay.
      An employee who leaves Elisa after more than 12 years of service would get an extra four months’ pay if there is no work requirement during the notice period. If the employee is expected to work, the extra pay is extended to six months.
     
As another inducement to voluntary departure, Elisa is offering financial support for training for other jobs.
      The main reason why telecommunications service providers prefer "voluntary" job cuts is that if an employee leaves of his or her own accord, the company is not required to give the old employees priority if it decides to start hiring again.
     
Sonera has used the services of an outplacement consulting firm for the past ten years. Those who are leaving the company are offered outplacement courses and training for applying for jobs.
      In February TeliaSonera announced the reduction of 650 jobs in Finland, but the number was later reduced to 330.
      Personnel chief Juha Pentti does not yet know how many employees will leave Sonera, as many are still weighing their options. He feels that the most important form of support is the possibility for those facing termination to apply for jobs that are constantly open elsewhere in the company.
      Pentti estimates that 20-30% of those whose jobs are being cut will take the severance package, and that 100-200 people will find other work within the company.


Previously in HS International Edition:
  Employees consider taking TeliaSonera to court over job cuts (17.2.2005)
  TeliaSonera to cut 650 jobs in Finland - overall reductions may amount to 2,000 (11.2.2005)

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