EMCC European Monitoring Centre on Change

Eesti Energia

Company/Organisation:
Eesti Energia

Geographic Location

Country: Estonia
Region: Kirde-Eesti; Eesti
Location of affected unit(s): Ida-Virumaa county

Company

Sector: Mining / quarrying
Mining and quarrying
08 - Other mining and quarrying
Number Employed: 351
Group: Eesti Energia

Employment Effects

Announcement Date: 18-01-2012
Planned Job Reductions min: 290
Planned Job Reductions max: 290
Type of Restructuring: Closure
Employment Effect Start: 18-01-2012
Foreseen End Date: 01-01-2013
Direct Dismissals: 216
Other Job Reduction Measures: 74

Additional Information

Eesti Energia, a state-owned energy company which has over 7,500 employees in Estonia, is closing down its Aidu mine with the loss of 290 jobs. The closure is due to the exhaustion of the mine's oil shale deposits . 61 out of the 351 employees of the Aidu quarry will continue work in Narva quarry. 290 workers will be made redundant, 74 of which can take retirement.

The work in the quarry will be ended gradually and the staff will be made redundant in stages. Work in the quarry will end by August 1, 2012 and the quarry will be fully closed by January 1, 2013.

The company has a development fund of 1 million euros to help staff to cope with the changes; staff will also receive redundancy payments that exceed 1.5 million euros. The company is cooperating with the Estonian Unemployment Insurance Fund to help employees to find new jobs.