Coor Service Management issues redundancy notices to staff in Östergötland, Sweden

Coor's contract with Östergötland County Council is expiring, and pursuant to the Swedish legislation governing public tendering, a new tendering process must be conducted. Accordingly, Coor is issuing redundancy notices to the staff on this contract. However, the County Council's new tendering documentation requires that the supplier that wins the tender must offer employment to all the affected staff em-ployed under a collective agreement.

Coor has provided workplace and restaurant services to Östergötland County Council since 2003. This fixed-term contract expires on 31 October 2009, and pursuant to Swedish legislation governing public tendering, a new tendering process will be conducted. Coor's staff on this contract are entitled to notice periods of up to one year so the 250 staff are now being issued with redundancy notices.

"Obviously, having to issue redundancies to our staff feels bad," commented Hans Josefsson, Coor Service Management's Business Area Manager, "now, we're trying to handle this situation as well as we can."

However, the County Council's tendering documentation requires that the new supplier must offer employment to all the affected staff employed under a collective agreement.

"We've had a good collaboration with Östergötland County Council, and have secured the maximum extension of our contract term. Now we're doing everything we can to re-win all or parts of the contract," concluded Mr. Josefsson.

The necessary union negotiations have concluded and staff members have been informed about the situation.

For more information, please contact:

Hans Josefsson, Business Area Manager, Sweden 2, Coor Service Management, phone: +46 (0)8 553 95919

Åsvor Brynnel, Communication Manager, Coor Service Management, phone: +46 (0)70 600 7321