Kainuu welfare region launches collective bargaining to cut staff costs

The Kainuu welfare region in Finland has initiated collective bargaining negotiations covering its entire workforce, aiming to reduce personnel costs by an estimated €8 million in 2027.

The regional board approved the move in an extraordinary meeting on Thursday, according to a statement from the welfare region. The talks are intended to balance finances, restructure operations, and address potential reductions in workforce use.

Preliminary estimates suggest the negotiations could affect around 120 full-time positions. The welfare region clarified that this figure represents the calculated scale of reduction needs, not a direct number of layoffs. The final impact, scope, and implementation methods will be determined during the talks.

Measures are expected to primarily target administrative, strategic support, and other support service roles, as well as managerial, supervisory, expert, and specialist positions. The welfare region aims to minimise the impact on employees directly involved in patient and client work.

During the negotiations, the employer will explore alternatives to reduce staffing impacts, such as utilising retirements, reducing temporary staffing, and critically evaluating new hires, role replacements, and temporary positions.

“This year’s profit forecast, along with information on next year’s funding and cost trends, necessitates inevitable cuts. The targeted savings are substantial, so the negotiations will cover the entire organisation,” said Sami Mäenpää, director of the Kainuu welfare region, in the statement.