Kuopio initiates workforce negotiations amid financial challenges in Finland

Kuopio has decided to initiate cooperation negotiations affecting the entire city workforce. This decision was made in a meeting of the city council held in the afternoon. The negotiations are being started for production and financial reasons. At the end of last year, the city employed approximately 3,840 workers, in addition to about 230 part-time employees in various sectors, such as the adult education center and the city theater.

The negotiations aim to address a necessity to reduce the equivalent of 90 full-time positions, targeting annual savings of around five million euros compared to the current situation. The city anticipates these savings could begin to materialize as soon as next year. According to the city, these reductions will primarily be achieved by reorganizing tasks and operations. Additionally, some employees are expected to retire, but there is a possibility that layoffs or part-time reductions may also occur.

The decision was presented by Mayor Soile Lahti. In an interview with Yle, she explained the need for additional cost-saving measures, highlighting that the city’s financial forecasts indicate a deficit of around 24 million euros for the current year. Kuopio aims to have its finances balanced within three years, initiating a financial stabilization program seeking a total of 35 million euros in savings.

The impact of these changes will be evident in the school system, as the city council determined this spring that a process to close schools would be initiated if enrollment numbers fall below specified thresholds.