The entire staff of the former Lehtiseppie sheet-fed printing business, which was transferred to Punamusta through a business acquisition last week, is in the scope of the change negotiations.
RedBlack The media group’s printing business company Punamusta is initiating change negotiations regarding the possible reduction or termination of production in Lahti. This change comes in the wake of business acquisitions from Lehtiseppie, in a move that could potentially impact the entire staff of the previously independent sheet-fed printing business.
The scope of the change negotiations includes the entire personnel of the former Lehtiseppie sheet-fed printing business. The number of personnel reductions is said to be a maximum of 27. This potential downsizing is a significant aspect of the negotiations, and one that will undoubtedly affect the futures of those employees involved.
The changes aim to save a maximum of 1.4 million euros annually. This financial aspect is a key motivator for the potential changes, as the company seeks to optimize its operations and reduce costs where possible.
Last week, Punamusta bought its sheet-fed printing business from Keskisuomalainen’s subsidiary Lehtisepi. At the same time, 27 employees of the business transferred to Punamusta as old employees. This transition represents a significant change for these employees, as they adapt to their new roles within Punamusta.
Production downsizing or downsizing is said to make it possible to improve profitability and competitiveness as well as secure future operational capacity. In particular, the sheet-fed printing capacity would be adjusted to meet profitable customer demand in a declining market. This strategic shift aims to ensure the company’s continued viability in a changing market landscape.
“Downsizing or abolishing, all options are on the table. But a loss-making operation must be made profitable one way or another. It is not possible to finance unprofitable activities”, Director of Punamusta Media’s printing business Jarry Avellan said to STT. His statement underscores the company’s commitment to profitability and long-term sustainability.
He said that he held a briefing for the employees, where no questions were asked. This level of transparency is crucial in times of change, as it helps to ensure that employees are kept informed and any concerns they may have are addressed.
“Yes, these are unpleasant things and certainly cause a lot of questions and worries there.” The director acknowledges the challenges and uncertainties that come with such changes, reflecting the company’s understanding of the impact on its employees.
Last week it was also reported that Punamusta Media is selling its media business to Keskisuomalai. The deal includes the entire shares of its subsidiaries Sanomalehti Karjalainen, Karelia Viestinnä and Punamusta Paikallismediodien. The deal is estimated to be completed in the first half of this year, and is subject to the approval of the Finnish Competition and Consumer Authority. This represents a significant change in the media landscape, and further underlines the company’s strategic focus on its printing business.
Before the transaction was completed, Punamusta Paikallismedia was told that it would also sell its owned properties to Punamusta Media, which would then rent the related premises to Keskisuomalai. This aspect of the deal further highlights the complex nature of the business transition and the potential changes in property and asset ownership.
It was also reported that a subcontracting contract for newspaper printing for three years and a subcontracting contract for page manufacturing for nine months will be concluded between the companies. These agreements represent a continued relationship between the companies, fostering ongoing collaboration and mutual support.
