EMCC European Monitoring Centre on Change

M.V.Wool

Company/Organisation:
M.V.Wool

Geographic Location

Country: Estonia
Region: Põhja-Eesti; Eesti
Location of affected unit(s): Harku and Vihterpalu

Company

Sector: Manufacturing
Manufacture of food products, beverages and tobacco products
10.2 - Processing and preserving of fish, crustaceans and molluscs
Number Employed: 140

Employment Effects

Announcement Date: 06-12-2019
Planned Job Reductions min: 50
Planned Job Reductions max: 125
Type of Restructuring: Internal restructuring
Employment Effect Start: 14-12-2019
Foreseen End Date: 31-12-2019
Direct Dismissals: 50

Additional Information

In the beginning of December 2019, M.V.Wool, an Estonian exporting fish processing company, gave a short notice that 125 of their 140 employees will be made redundant by the end of the year. In March 2019, M.V.Wool was associated with several bacteria outbreaks caused by listeria bacterium in several countries. As cleansing and sterilising the facilities have not improved the production and could not sustain the health requirements, the Estonian Veterinary and Food Board have ordered the termination of the activity, including production, mediation, storage, import and export of raw material and goods. 15 people will remain employed to work on the conditions and business recovery.

The Estonian Unemployment Insurance Fund has been notified by the company of the collective redundancy. The employee information and consultation process prescribed by law ended on 14 December 2019, when M.V.Wool began the lay-off proceedings. The company is cooperating with the Unemployment Insurance Fund and has promised to fully support the affected employees.

The company was established in 1994.

Update 10/01/2019: Both production plants of the company, in Harku and Vihterpalu, were thoroughly cleansed and sterilised and no new positive listeria samples were found. Therefore, in January 2020, the Estonian Veterinary and Food Board allowed further exploitation of both facilities. This decision means that the company will withdraw its collective dismissals programme. However, around 50 workers are dismissed due to reduced production. The plant in Vihterpalu was set back for exploitation on 2 January 2020 and the Harku plant on 10 January 2020. If the company restore its previous production levels, it may rehire the dismissed staff.

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