Eesti Energia to shortly lay off a couple hundred miners

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Photo: Eesti Energia

With oil shale demand down due to low oil and power prices, Eesti Energia is forced to seek for ways to boost effectiveness.

Come new year, Estonia Mines of Eesti Energia will switch into lava chamber technology allowing to mine oil shale at lower costs.

The launch the new technology comes with €21m invested and 50 extra jobs created. At that, enhanced mining effectiveness necessitates a return to five-day working week (currently six) wherefore a couple hundred miners must needs be laid off, mediated the North-East Estonian newspaper Põhjarannik.

Eesti Energia Kaevandused (Mines) chief Andres Vainola said that new job opportunities are sought for the people laid off in cooperation with trade unions, Unemployment Insurance Fund (UIF, the Töötukassa) and other enterprises in the region. Meanwhile, close to half of those laid off will head to old-age pension or pension with benefits.

«We have also set up a support fund for miners allowing to apply for company pension five years before retirement age. Also, the workers unable to find work during the unemployment insurance benefit can apply for retraining grants from said fund,» said Mr Vainola.

In May, Eesti Energia CEO Hando Sutter told Postimees the company needed to boost investments into technology. «Only 40 people will be working in the new power station in Auvere. As the Narva power stations were launched in the 1960ies, the staff was manifold more. The trend is for simple workers to be less numerous while specialists and engineers are added,» said Mr Sutter.

Unemployment Insurance Fund’s chief PR-specialist Ülle Ots said they have dealt with large-scale lay-offs before and are ready for the consequences.

«We have a team to react to lay-offs, to support the employers having to carry out the lay-offs,» said Ms Ots. The team will be able to mediate job offers to those laid off and arrange meetings with potential new employers.

The fund vows to wholeheartedly support those about to be laid off in Ida-Viru County. «In Ida-Virumaa, 461 vacant jobs are on offer, and Töötukassa is willing to help the people any way we can with our services and counselling,» said she.

Presenting the notice of dismissal, people can get registered as job seekers at UIF even before their contract runs out – thus able to partake of various services. Also, services are offered to people in their old-age pension years who get registered as job seekers.

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