Salo city to begin talks that could lead to layoffs

Salo city will begin co-operation negotiations covering its entire staff next week, Yle reports. The talks aim to secure savings of up to 2.2 million euros, equivalent to reducing about 44 person-years. Layoffs may be considered.

The city board approved the negotiations at its meeting on Monday. Staff impacts could also result from reorganising duties and operations, leaving positions unfilled, including when employees retire, and reducing fixed-term employment.

The negotiations are driven by bleak financial forecasts. Without corrective measures, Salo’s deficit would reach nearly 19 million euros in 2029.

The city board also approved other adjustment measures on Monday. Salo is seeking savings of about 2 million euros in other operating costs.

The financial balancing plan also includes an increase of 4 million euros in tax revenue in 2028, which would require raising the municipal tax rate by 0.4 percentage points.