Komatsu Forest has announced layoffs affecting 90 workers at its Umeå plant in Sweden after union IF Metall rejected a company proposal that could have avoided dismissals. Approximately 60 employees demonstrated against the union’s decision outside the factory, according to Sweden newspaper Dagens Arbete.
The company proposed a 12% pay cut and two unpaid days off per week in exchange for avoiding employee terminations. The union declined the offer, which led to layoff notices for 63 permanent and 27 temporary employees. Around 100 white-collar staff were also placed on short-term leave.
Komatsu pointed to falling orders driven by multiple economic pressures, including the war in Ukraine, rising tariffs, and increased interest rates, as the primary reason for the downsizing.
Union chair Lena Johansson acknowledged the protestors' distress but said many workers supported rejecting the wage-cut offer, especially those living paycheck to paycheck who could not afford to lose income. She told Sveriges Radio that the decision reflects difficult trade-offs even when no path is easy.
This marks Komatsu’s second major reduction in 2025 following an earlier layoff, initiated in spring, that affected around 80 positions before being partially reversed due to declining global demand and other economic pressures.
