Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
AS Hiab Balti, the Estonian processor of metal and manufacturer of machinery and equipment, announced cutting 169 jobs due to internal restructuring at its site in Narva city. Hiab Balti is owned by the Finnish corporation Cargotec.
The first job reduction is scheduled to take place on 20 May 2009 when 90 persons are made redundant. The dismissal of another 79 persons will follow in June. The first redundancy will be due to reorganisation of production and the second as a result of the decrease in work volume. In total, it is expected that the reorganisation will help optimise the production and raise the competitiveness of the company.
The demand for firm´s products has decreased significantly and the company´s business loss exceeded EEK 30 millions at 2008. Blue-collar workers will be mainly concerned. As a result of negotiations with the company trade union, in order to keep the rest of the jobs, most of the remaining 305 workers have been required to work on reduced working time due to a decreased in work volume. According to the comments of the company, it is expected that as a result of the reorganisation, other workers will be employed full time again from autumn 2009.
Eurofound (2009), Hiab Balti, Internal restructuring in Estonia, factsheet number 68095, European Restructuring Monitor. Dublin, https://dev.eurofound.europa.eu/restructuring-events/detail/68095.