Pirkanmaa welfare area revises cost-saving target down to €12 million from €20 million

The Pirkanmaa welfare area’s cost-saving target from ongoing negotiations has been revised downwards, changing from an initial estimate of €20 million to €12 million. The regional government had initiated the consultation process in June, aiming for significant savings. The adjustments to the savings target follow updated economic data from Pirkanmaa’s second-quarter report and national economic developments for welfare areas.

According to Juhani Sand, head of corporate services, the upcoming negotiations will fortunately be less financially demanding than expected, marking them as the last major adjustment discussions for this council term. These negotiations aim to reduce approximately 80 person-years, primarily affecting management and specialist roles. While efforts will be made to find alternative employment for affected staff, layoffs remain a possibility.

The regional council is set to discuss the revised savings goal in its meeting on August 26, with previous negotiations concluding on August 12. Financial forecasts indicate that Pirkanmaa is facing a deficit of €69 million, a slight increase from an earlier prediction of €67 million made in May.

Despite the projected deficit, this figure represents a containment of a significantly larger deficit experienced last year, which was €136 million, positioning Pirkanmaa favorably compared to other welfare areas. Consistent financial balancing measures, such as last autumn’s previous negotiations, have yielded positive results, according to Marina Erhola, leader of the Pirkanmaa welfare area.

Looking ahead, the financial situation for the latter part of the year appears challenging as new costs from service agreements, wage increases, and vacation pay liabilities are expected. The exact amounts of these costs are still unknown, suggesting that the latter half of the year may be less favorable financially than earlier in the year.