Patria begins change negotiations in order to continue the development of its operating model, meet increased demand as well as improve efficiency
In order to implement Patria’s Horizon 2025 growth strategy, Patria’s entire operating model changed significantly in the beginning of 2022. During the change, all delivery units were placed in Patria’s Operations unit, but the unit’s operating model was not renewed as profoundly as the rest of the organisation. At the same time, Portfolio function was designed as a new unit completely from scratch.
Besides the feedback of Patria’s own personnel, the need to develop organizational structure further is also driven by customer feedback. Operating model’s development needs have been considered with the personnel during the spring and summer of 2023. Changes to the operating model are foreseen and those will be negotiated with the personnel in accordance with normal processes.
“Patria’s order stock and demand are at a good level, especially in our vehicle programmes. Patria’s operating model needs to be as efficient and lean as possible to tackle the growing demand as well as to ensure the delivery of both existing and new orders,” notes Esa Rautalinko, Patria’s President and CEO. “We have had over 1½ years of experience with the existing operating model. During this time, we have discovered that we need to further improve our efficiency, operational activities and decision-making, in order to also improve both customer satisfaction and our profitability.”
The change negotiations will begin on 14 August, 2023 and last for a minimum of six weeks. The Patria Group companies that are included in the negotiations are Patria Oyj, Patria Aviation Oy, Patria Aerostructures Oy, Patricomp Oy and Patria Land Oy. Patria’s Operations and Portfolio units as well as so-called group-level support functions in these companies are in the scope of negotiations. As the planned changes in different units have an impact on each other, the negotiations in different units are held jointly.
Patria’s line managers and white-collar workers are in the scope of negotiations. The plans will not have an impact on blue-collar workers with the exception of workers in Patria Aviation Oy’s Engines, Components & Training Diesel Engines function in Linnavuori. In addition, as part of Operations unit, Patria Pilot Training Oy and Patria Aviation Oy’s Military Pilot Training are not included in the scope of negotiations.
Patria estimates that the planned changes may lead to reorganisation, combination, change and reduction of tasks and related redundancies or relocation of employees to new positions as an alternative. The total number of personnel in scope of the negotiation is approximately 1,190. The estimated impacts include largely changes in tasks and reorganisation.
The integral changes will involve approximately 310 job roles. New job roles are expected to be opened in the planned organisation. According to preliminary estimates, in total less than approximately 75 new job roles will be opened than job roles that are planned to be concluded. In addition, redundancies may take place if there are employees who do not accept job offers for new roles. The negotiations will not involve temporary layoffs.
In addition, were these plans to go ahead, the changes might have impacts on Patria’s operations outside Finland. For these operations the matter would be handled in accordance with local legal requirements in each country.
Patria’s Operations unit is responsible for production and supply chains and, given its nearly 2,000 employees, is the largest unit in the company. The Portfolio unit is responsible for products and services as well as their development and sales support, and the Group unit manages all group-level internal support operations at Patria.
The key focus is on the long-term improvement of Patria’s delivery processes and operations, at the same time minimizing any effects on customers or ongoing customer projects.
Millog Oy and its personnel, as part of the Patria Group, are not included in the scope of the negotiations.
Media enquiries and further information:
Patria Group's Communications: [email protected]
Sirje Ahvenlampi-Hyvönen, Vice President, Group Communications, Patria, tel. +358 50 557 3822, [email protected]
Patria is an international provider of defence, security and aviation life cycle support services, technology solutions and pilot training. Patria provides its aerospace and military customers with equipment availability, continuous performance development as well as selected intelligence, surveillance and management system products and services. Patria’s mission is to give its customers confidence in all conditions, and the vision is to be the #1 partner for critical operations on land, sea and air. Patria has several locations including Finland, Sweden, Norway, Belgium, the Netherlands, Estonia, Latvia and Spain. Patria employs over 3,000 professionals. Patria is owned by the State of Finland (50.1%) and Norwegian Kongsberg Defence & Aerospace AS (49.9%). Patria owns 50% of Nammo, and together these three companies form a leading Nordic defence partnership.