The Finnish dairy giant Valio has announced the loss of 126 jobs and will temporarily lay-off 50 more employees as a result of an expected collapse in income because of Russia’s ban on imports of dairy products from the EU.
The reductions will come about through the non-renewal of fixed-term employment contracts.
Included in the 126 job losses are summer workers who would not ordinarily be kept on. The lay-offs and job losses will affect staff based in Haapavesi, Seinäjoki, Vantaa and Lappeenranta.
The Lappeenranta facility—a hub for Russian exports as it is situated close to the border in south-eastern Finland—will not have a single worker after the changes. The lay-off talks with unions that preceded the decision, which are mandatory under Finnish legislation, started after Russia announced the sanctions and affected all 800 Valio employees.
Valio products labelled in Russian have been sold at steep discounts in Finnish supermarkets since the Russian export ban was announced. Russia later relented, allowing some lactose-free milks, yoghurts and cheeses to be imported from the EU.
The firm says it will re-evaluate the situation once Russia’s ban on EU dairy products is lifted. Valio has operated in the Russian market since 1956, when it was one of the few brands from non-socialist states available in some Soviet stores.