Lördag 21 December | 14:15:14 Europe / Stockholm

Prenumeration

2024-10-01 18:00:00

As previously announced, due to the challenging market conditions, Kaunis Iron AB has now completed the initial union negotiations and is proceeding with a thorough reorganization to streamline operations. Although these actions are difficult, they are necessary for the company to strengthen its business and secure a long-term future for mining in Tornedalen.

Within the agreement area of IF Metall, negotiations have been fully completed, resulting in the layoff of 10 employees due to a lack of work. Kaunis Iron AB has also concluded negotiations regarding redundancies among administrative personnel, meaning the new organization will have 49 fewer positions. The next step is to begin negotiations about which employees will ultimately be affected by the staff reduction. Kaunis Iron is holding off on specifying an exact number to avoid preempting the negotiations, but it is estimated that fewer than 49 administrative personnel will be laid off due to a lack of work since, for example, some vacant positions will not be filled.

"These decisions affect our operations, our employees, and the entire local community in Pajala and Tornedalen. Many of those who will unfortunately have to leave have been an important part of the company, and we understand the concern and uncertainty this creates," says Lars Bogren, HR Manager at Kaunis Iron.

Despite the challenges ahead, the ambition is to ensure Kaunis Iron’s long-term operations and continue contributing to Tornedalen as a significant employer. The focus in this phase is to ensure continuity in mining operations, which are the core of our business and our main priority.

"This is one of the hardest decisions we’ve had to make since restarting mining operations in 2018, but it’s necessary to secure our future and adapt to the challenges arising from the tough market conditions. We are committed to continuing our mining operations in Tornedalen, and these actions are a step toward creating a sustainable and stable future for both the company and the region," concludes Klas Dagertun, CEO of Kaunis Iron.