Konecranes Heavy Lifting Corp has started statutory negotiations regarding possible temporary and permanent layoffs to cope with dropping demand for its products.

Konecranes spokesperson Mikael Wegmüller tells Forkliftaction.com News the discussions for possible layoffs include "all personnel groups" in the company. However, he adds that it is too early to say what factors distinguish between staff facing possible permanent layoffs and those that could be made temporarily redundant.

It is estimated that not more than 80 Finland-based employees will be affected by permanent layoffs, Konecranes says in a statement.

Orders for lifting equipment in Konecrane's heavy lifting business area have decreased by 37% in the first quarter of 2009 due to "low industry activity, low capacity utilisation and market weakness and uncertainty".

Konecranes has cut costs through other measures like reducing the use of hired personnel and temporary employment and shifting the subcontracting of the production of gears and some electrical components in house. Statutory negotiations are also continuing in Konecranes Standard Lifting Corp and Konecranes Service Corp. Wegmüller says about 20 people will be temporarily laid off in Konecranes Standard Lifting Corp while up to 40 people could temporarily lose their jobs in Konecranes Service Corp.

Konecranes Heavy Lifting Corp supplies port and heavy industrial cranes. It employs about 620 people in Finland. The negotiations are expected to last at least six weeks.