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.
Finnish cable harnesses manufacturer PKC Group announced that it will close down they plant in Keila, Estonia and relocate their production to Lithuania and Russia where the production costs are smaller. Within a year, the company will make 613 out of 707 people redundant. The company will continue the development of their European and Southern American regional centre with the remaining employees (such as engineers, production developers, production launchers, IT specialists, finance, human resource management, sales staff etc).
The closure has a big effect on the region, the biggest share of employees working in Keila factory are living in Keila (223 people), but many are from towns, parishes near Keila. The company notified the Estonian Employment Insurance Fund (EUIF) and met with the company and employees representatives on 12th February. The chairman of the executive board of Estonian Unemployment Insurance Fund, Meelis Paavel, stated that they are ready to help the people who got the redundancy notification by providing different active labour market services. He also believed that a year is long enough time for employees to adjust with the new situation and if necessary complement their qualification with the help of EUIF and find a new job. During the meeting between the PKC, employees’ trustee and EUIF, it was agreed that information and counselling programmes for employees will start as of 2ndMarch and EUIF also informed that 5 companies are interested in the released qualified labour force. Employees’ trustee was positive after the meeting and believed that all employees will find new jobs. The company will carry out the redundancies in stages depending on the production.
Eurofound (2016), PKC , Offshoring/Delocalisation in Estonia, factsheet number 86471, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86471.