Tallink Grupp starts collective redundancies process in Tallink hotels
Tallink Grupp has notified the Estonian Unemployment Insurance Fund that it has commenced a collective redundancies process in one of its subsidiaries, TLG Hotellid (Tallink Hotels) and has notified employees of the start of the process.
As a result of the process, approximately 130 positions will be made redundant in TLG Hotellid in Estonia and Latvia. In addition, the group’s Management has critically evaluated the resource requirements of onshore personnel in the next six to twelve months, and some redundancies are also expected in the company’s other subsidiaries and business areas where the resource requirements have significantly reduced due to the current circumstances.
The only hotel currently still partly open within the Tallink Hotels chain, is Tallink Express Hotel. According to the assessments by the company’s management, it will take at least one year to a year and a half until the accommodation sector is able to recover after the crisis, therefore also the staffing requirement for the hotels in the near future will be more modest than usual.
"Today, we are in the situation, where we had to very quickly, yet at the same time, very constructively and with a good foresight, evaluate our need for staffing for the period of six months to one year to come, without knowing exactly, what the next six months to a year will actually bring," Paavo Nõgene, CEO of Tallink Grupp, commented.
“As for the rest of the group, we have made the decision to reduce positions in areas where our activities have significantly reduced or stopped completely. As much as possible, when reviewing the staffing situation, today’s vacancies within the company were not filled and thereby the actual number of people will not reduce significantly,” Nõgene added.
"Indeed, the Estonian Government has created an aid mechanism in support of the employers, which will be of great assistance to the company during the next two months and we were hoping that these instruments will help us to keep all jobs within our company. We have managed to keep most jobs intact and the redundancies do not affect one of the largest employee groups of Tallink Grupp – our ships’ crew and onboard personnel at present. Yet, we must look ahead into the more distant future and since the market recovery will take more time, we are unable to continue today with the same number of employees as before the crisis.
“We will continue to do our best to offer, where possible, those employees whose positions are made redundant, other jobs within the company, " Nõgene concluded.
apr 02 2020
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