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.
Estonian oil shale mining company Eesti Energia Kaevandused, a subsidiary of the state energy company Eesti Energia, is closing down its Viru oil-shale mine. Among the 460 employees now working in Viru mine, 100 will retire, 100 will be made redundant and 260 will be relocated to Narva quarry (another Eesti Energia Kaevandused mine) or to the company’s logistics site.
There were environmental as well as economic reasons behind the closure of the mine. The technology used in the mine is from the 1950s. In addition, the geology of the mine has deteriorated with an effect on the economic sustainability of the site.
The company has started cooperation with Estonian Unemployment Insurance Fund already a year ago to relocate as many employees working in Viru mine to other sites within the company. However, the company was not able to offer employment elsewhere within the company to all affetced employees. For those made redundant, the company has set up a support fund. The fund includes a pension scheme as well as a scholarship for re-training and informative classes about different re-training and job opportunities.
Eurofound (2013), Eesti Energia Kaevandused, Closure in Estonia, factsheet number 75478, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/75478.