Eesti; Kirde-Eesti;
Location of affected unit(s)
Mining / Quarrying
Mining And Quarrying
Extraction Of Crude Petroleum And Natural Gas
06.10 - Extraction of crude petroleum

146 - 166 jobs
Number of planned job losses
Job loss
Announcement Date
18 January 2019
Employment effect (start)
1 February 2019
Foreseen end date
31 December 2019


Enefit Kaevandused AS announced collective redundancy of 146 persons plus additional 20 persons in 2019. Enefit Kaevandused is an oil shale extraction company in Ida-Virumaa, Estonia, employing currently 2,305 employees. It is a subsidary of Eesti Energia - a state-owned international energy company that operates in the electricity and gas markets of the Baltic countries and Poland, also in the international liquid fuels market.

In 2019, some of the older energy blocks in Ida-Virumaa reach their maximum lifespan according to the EU Industrial Emissions Directive and thus must be shut down. As these blocks all run with oil shale, the shutdown will reduce the demand for oil shale. This will affect Enefit Kaevandused AS, whose workload will decrease and thus layoffs are needed. The redundancy will take place gradually according to the reduction in production volume as of February, the peak will be in March. Initially, 146 people will be laid off, followed by another 20 in the second half of 2019.

Most of the persons facing redundancy are miners, but there are also around 50 persons working in logistics, maintenance and repair. 65% of all the persons made redundant are in retirement age. The Estonian Unemployment Insurance Fund (EUIF) will provide help and support to all persons made redundant in the framework of their response service to collective redundancy. According to EUIF, there are currently around 700 vacancies available in the region, thus it can be expected that at least a good share of the persons are able to find a new job. Around 10% of the persons are also offered company pension paid by Eesti Energia in the future. This is meant for those who are still unemployed after the end of the unemployment insurance benefit payments and who have less than five years until their retirement age. The size of the company pension is €365 per month (the average wage of the miners in the region is €1,600, the national average wage is around €1,200 and the minimum wage is €540). Around 25% of the persons are offered re-training grant paid by Eesti Energia, in addition to the re-training benefits and possibilities by the EUIF.



Eurofound (2019), Enefit Kaevandused AS, Closure in Estonia, factsheet number 96370, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/96370.