Vantaa and Espoo launch citywide job cut talks

Vantaa and Espoo will begin citywide co-operation negotiations after decisions by the cities’ boards, Yle reports. Teaching and education staff working in day-care centres and schools will initially be excluded from the talks in both cities.

Vantaa is seeking savings of 15 million euros. The city is preliminarily targeting about 200 redundancies, as well as furloughs and part-time work arrangements.

Vantaa’s city board said action was needed to balance the city’s finances. Vantaa has reported a clear deficit for several years and estimates that the deficit will exceed 60 million euros this year and approach 70 million euros next year.

Espoo plans cuts despite surplus

Espoo says it may reduce staffing by up to 300 person-years, with a target of cutting annual personnel costs by about 10 million euros.

In addition to redundancies, Espoo plans to reduce personnel costs through retirements and voluntary transfers to other duties.

The plans have caused surprise because Espoo’s finances are in surplus. City manager Kai Mykkänen said the staff reductions were necessary to stop the city’s per-capita debt from increasing. He said the profit from the previous financial year would not be enough to cover the city’s investments.

The number of children and young people is growing particularly quickly in Espoo, Mykkänen said. The city is building 20 schools and day-care centres this year, as well as a light rail line.

Mykkänen added that the state had cut municipalities’ central government transfers and their share of corporate tax revenue, creating a need for additional savings amounting to tens of millions of euros.