Viking Line adapts operations to the effects of the coronavirus pandemic and begins cooperation negotiations with land-based staff
24. August 2020
Viking Line will begin cooperation negotiations with land-based staff in Finland, Sweden, Estonia and Åland. On August 24, notification of cooperation negotiations was sent out to the Finnish organization. On the same day, the Swedish organization began negotiations in accordance with the Swedish Act on Co-Determination in the Workplace. The company plans to reorganize the functions of the land-based organization in order to cut costs, improve operational efficiency and safeguard the company’s future competitiveness and financial position.
– The ongoing coronavirus (COVID-19) pandemic has caused a serious deterioration in the Group’s operating conditions. Since March 2020, operations have been dominated by the travel restrictions introduced, with the consequence being a reduced propensity to travel in the company’s markets. For Viking Line, the most important restrictions still in effect concern travel restrictions between Finland and Sweden. The international market has also been drastically affected. It is difficult at present to estimate how long the coronavirus pandemic will last and what the effects will be on Viking Line’s future results, financial position and cash flow. In this challenging situation, adaptation measures are unfortunately needed to secure the company’s future operating conditions,” says Jan Hanses, president and CEO of Viking Line.
Cooperation negotiations to begin September 1, 2020
To minimize the negative effects caused by the coronavirus situation, Viking Line will reorganize the land-based organization by adapting staff resources to the weaker demand and begin cooperation negotiations. The negotiations will affect all of the company’s land-based staff of about 570 people in Finland, Sweden, Estonia and Åland. Planning for the new reorganization is expected to lead to restructuring, downsizing, centralization and streamlining of some functions as well as changes in some employees’ job descriptions to better meet the company’s current and future needs. The planned measures are expected to result in a shift to part-time jobs, layoffs or redundancies for up to 200 people. If there are any redundancies, Viking Line will fulfil its obligation to re-employ staff in accordance with laws and collective agreements. Negotiations will begin on September 1 in Finland and Åland and are expected to last for six weeks. In addition to these cooperation negotiations, similar negotiations will take place in Estonia.
For additional information:
Jan Hanses, president and CEO, Viking Line Abp, firstname.lastname@example.org, tel: +358-18-27000
Johanna Boijer-Svahnström, senior vice president Corporate Communications, Viking Line Abp, email@example.com, tel: +358-18-27000
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