EMCC European Monitoring Centre on Change

VR Track

Company/Organisation:
VR Track

Geographic Location

Country: Finland

Company

Sector: Transportation / storage
Transportation and storage
49.10 - Passenger rail transport, interurban
Number Employed: 500
Group: VR Group

Employment Effects

Announcement Date: 13-05-2014
Planned Job Reductions min: 123
Planned Job Reductions max: 123
Type of Restructuring: Bankruptcy
Employment Effect Start: 19-05-2014
Foreseen End Date: 31-12-2014

Additional Information

Finnish train operator VR Track has announced it will cut 130 jobs in Finland. The job cuts will mainly be among service personnel and will not affect other staff such as conductors or train drivers.

According to the source, VR Track will make the cuts through direct dismissals, early retirement and moving full-time employees to part-time contracts. The job cuts are a result increased ticket sales at ticket vending machines, which has reduced the need for sales and personnel staff. The source reports that statutory negotiations with employee representative will begin next week. 

The ERM has reported on previous restructuring events at VR Track in 2012.

Updated 2014/06/25: After concluding negotiations, VR Track has announced that 123 employees will be laid off. VR will close ticket sales in eleven locations in Finland.