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Diak’s change negotiations completed

The change negotiations at Diaconia University of Applied Sciences have been completed. Diak aims to save approximately EUR 3 million by the end of 2026. As a result of the change negotiations, 22 people will be made redundant. The work tasks will change significantly for 9 people.

In the negotiation proposal, the employer anticipates that the redundancies or substantial changes in employment relationship will affect a maximum of 40 people. The group under consideration during the change negotiations was the entire personnel, approximately 270 people. The negotiations, which began in April, were conducted in relation to production, financial and operational restructuring.

“The change negotiations have been tough for our entire work community. Despite the challenging situation, our staff has taken care of everyday duties and supported the students on their study path throughout the spring,” says Elina Juntunen, CEO and Rector of Diak.

The reason behind the need for change is that Diak’s operating profit has become negative. Despite active and proactive measures, Diak’s financial situation needs to be adjusted.

The total funding of universities of applied sciences has decreased considerably over the past decade. Funding for health and social services degrees has halved and basic funding for Diak has fallen by 33 percent overall. Funding for health and social services degrees declined further in 2021, when the majority of health and social services degrees were placed in the lowest category in the Ministry of Education and Culture’s funding model. For Diak, the financial transition has been very difficult.

Since the personnel changes are significant, the organisation of Diak will also be reformed as part of the change process. The aim is to have an operating structure that facilitates the implementation of the renewed strategy and the achievement of the objectives.

“We must find new sources of funding in order to achieve a stable financial base. We will strengthen our operations so that we can have the widest possible impact and we will establish a new unit for service business,” says Juntunen.

Additional information

CEO and Rector Elina Juntunen, Contacts by telephone through Administrative Specialist Krista Kairanneva, tel. +358 (0)400 418 796.

News updated on June 17, 2024: the number of people made redundant has been changed from 26 to 22. The number decreased following the termination-related discussion.