Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Eesti Raudtee, the Estonian state-owned railway company, has announced the reduction of 110 jobs during July to August 2009 in their subsidiary EVR Cargo. Earlier, an agreement was concluded with the trade unions that a maximum of 157 jobs can be lost in the company up to the end of the year. In addition, some positions from the management will also be lost. This was cut down from 300 jobs initially announced to be lost in the company.
According to the announcement of Eesti Raudtee, the job cuts mostly affect workers in cargo transport. Regionally, the most affected areas will be the cities Tallinn and Tapa. According to the 2008 annual report of the company, Eesti Raudtee is planning on becoming profitable in 2009 which means more aggressive sales work and extensive cuts in expenses (including labour costs). In 2008, the company declared that its aim was to maintain as many jobs as possible which might include wage cuts and implementation of part-time work.
Collective bargaining was initiated in February 2009 when Eesti Raudtee applied for negotiations to freeze the wages in the company at their current level. Negotiations were held with the Estonian Railworkers' Trade Union and the Estonian Locomotive Workers' Professional Association. As a result of negotiations, the trade unions and Eesti Raudtee reached an agreement on a wage-freeze in the company to maintain more jobs and reduce job cuts.
The collective agreement for Eesti Raudtee was accompanied by an employee social programme. The social programme regulates the restructuring process in the company including information and consultation on restructuring, categories of workers who are protected in case of redundancies, measures to support workers made redundant in finding new jobs and additional financial support upon redundancies. The social program will be effective up to the end of 2009.
Eesti Raudtee has faced several redundancies over the past years. About 200 jobs were lost in the company in 2008 (11400) and 2007 (9921). For additional information on the social partner representativeness in the Estonian railways sector, see EIRO article.
Eurofound (2009), Eesti Raudtee, Internal restructuring in Estonia, factsheet number 69178, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/69178.