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.
Transportation / Storage Land, Water And Air Transportation Land Transport And Transport Via Pipelines 49.1 - Passenger rail transport, interurban
371 jobs Number of planned job losses
Announcement Date
28 August 2015
Employment effect (start)
Foreseen end date
Description
The Finnish state-owned railway company, VR, has started employer-employee negotiations to cut up to 570 positions in passenger traffic, train maintenance and rail services unit. VR is implementing a new cost saving scheme, aiming to save EUR 50 million through staff reductions and discontinued routes.
VR has lost many passengers to the low-fare bus companies, and during the second quarter of the year. The number of travels with VR decreased by more than 6 percent compared to the same period last year. The company also plans to lower the ticket fare to attract new customers.
The ERM has reported on previous restructuring events at VR in 2014 and 2012.
UPDATED 15/12/2015 The first stage of employer-employee negations has been concluded and on the 30th of November 2015 VR announced that 157 employees will be made redundant in passenger traffic services and part of the train operation business, dismissals will mainly come into effect during 2016. 400 employees are currently employed within the segment of which 157 will be let go. Redundancies are due to ticket sales coming to an end at 13 railway stations in early 2016. Only 15 % of tickets are bought at station ticket windows and through internal restructuring VR is planning to cut ticket costs to strengthen the competitiveness of passenger transport.
More lay offs are expected in the future and these 157 lay offs are only the first phase in the internal restructuring of VR.
Labour organisation representatives expressed disappointment in response to the announcement calling it an unwanted Christmas present.
UPDATE: 1/4/2015The second stage of employer-employee negotiations were concluded on 30 March 2016 and resulted in an additional 214 redundancies at VR. Conductors, drivers and employees responsible for the maintenance of rolling stock are affected by the second stage of lay-offs. In addition to the permanent redundancies temporary lay offs will be implemented and many employees will have the terms and conditions of their employment changed. Layoffs will begin to be implemented during the spring of 2016 and all lay-offs will be carried out before the end of 2017.
Initially VR had estimated that the internal restructuring would result in up to 570 redundancies. Following concluded employer-employee negotiations the internal restructuring resulted in 371 redundancies, almost 200 fewer than the maximum initially expected.
Sources
28 August 2015: HBL.fi
30 November 2015: HBL.fi
30 November 2015: VR Press release
30 March 2016: VR Press release
Citation
Eurofound (2015), VR, Internal restructuring in Finland, factsheet number 84532, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/84532.
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