EMCC European Monitoring Centre on Change

Latvijas Dzelzceļš

Company/Organisation:
Latvijas Dzelzceļš

Geographic Location

Country: Latvia
Region: Riga; Latvija
Location of affected unit(s): Riga

Company

Sector: Transportation / storage
Transportation and storage
49.2 - Freight rail transport
Number Employed: 4558
Group: LDz Group

Employment Effects

Announcement Date: 20-08-2021
Planned Job Reductions min: 700
Planned Job Reductions max: 700
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2021
Foreseen End Date: 31-12-2021
Direct Dismissals: 700

Additional Information

The state-owned company JSC Latvijas Dzelzceļš, the largest rail cargo company in Latvia, plans to dismiss 700 employees.  Due to the pandemic, nearly 1,300 employees of the company were already dismissed in 2020.

Prior to the public announcement, the Latvian Railway and Traffic worker Trade Union (LDzSA) said that the company had begun negotiations with the union.

Redundancies will take place in two stages. 200 employees are scheduled to be dismissed in September-October, mainly from administration and support staff. Further consultations with the National Railway Technical Inspectorate and the trade union are planned around the dismissal of another 500 employees, mainly blue-collar workers.

“When assessing and optimizing the administrative and support functions of the company, as well as technological processes, a decision has been taken to reduce the number of employees of the Latvian Railway State JSC by the end of the year by approximately 700 employees,” the company statement says.