Type
Bankruptcy
Country
Finland
Region
Location of affected unit(s)
Sector
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49.10 - Passenger rail transport, interurban

123 jobs
Number of planned job losses
Job loss
Announcement Date
13 May 2014
Employment effect (start)
19 May 2014
Foreseen end date
31 December 2014

Description

Finnish train operator VR Track has announced it will cut 130 jobs in Finland. The job cuts will mainly be among service personnel and will not affect other staff such as conductors or train drivers.

According to the source, VR Track will make the cuts through direct dismissals, early retirement and moving full-time employees to part-time contracts. The job cuts are a result increased ticket sales at ticket vending machines, which has reduced the need for sales and personnel staff. The source reports that statutory negotiations with employee representative will begin next week. 

The ERM has reported on previous restructuring events at VR Track in 2012.

Updated 2014/06/25: After concluding negotiations, VR Track has announced that 123 employees will be laid off. VR will close ticket sales in eleven locations in Finland.


Sources

  • 16 June 2014: vrgroup.fi
  • 14 May 2014: Svenska YLE
  • 14 May 2014: HBL.fi

Citation

Eurofound (2014), VR Track, Bankruptcy in Finland, factsheet number 77009, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/77009.