Eesti Energia job cuts threaten eastern Estonia beyond lost wages

More than 300 job cuts at Eesti Energia could affect eastern Estonia’s local economies, population and social services, ERR’s “AK. Nädal” reported. The impact will extend beyond the loss of jobs, with fewer taxpayers and customers for local businesses, the report said.

The cuts came after some had begun to think the future of the oil shale industry looked less bleak, as oil and electricity remained in demand and companies were profitable. The announcement of 300 job losses was a shock and reinforced concerns that the region’s decline would continue.

Narva, the county’s largest city, faces the cuts as its population has fallen below 50,000 for the first time this year. The city expects to lose 140 taxpayers and has a €2.5 million budget deficit. Mayor Jaan Toots said three companies are expected to enter the local job market, one in early December and two or three early next year. Together, they are expected to employ about 200 people, but he said every round of layoffs has a severe effect on Narva.

Kohtla-Järve, an oil shale industry centre, says it has received no official information about the layoffs. Mayor Evelyn Danilov said the city’s social services need to be prepared to help affected families, but officials do not know who might need assistance or how much.

Danilov said new jobs do not necessarily match the skills or needs of people losing their positions. Former Eesti Energia employee Andrei Zaitsev, who worked at a power plant for 30 years before being laid off a year ago, said he had been unable to find comparable work in the city or region. He said some employers did not respond to his applications, while others told him they had chosen someone else.

Zaitsev said he did not blame his former employer or the Unemployment Insurance Fund, but criticised politicians who supported the green transition, saying they had traded a powerful industry for “pennies” from the Just Transition Fund. He said a magnet factory had managed to bring jobs to the region, but questioned the value of funding projects such as hotels and an axe-throwing club.