Vantaa mayor proposes job talks despite no-layoff agreement

Vantaa Mayor Pekka Timonen has proposed citywide co-operation negotiations, even though a political agreement rules out layoffs and furloughs as savings measures, Yle reports.

The negotiations would in principle cover all of the city’s approximately 8,500 employees and every administrative sector. The savings target would be about 15 million euros.

The proposal will be considered by Vantaa City Board on Monday, August 10.

Staff at day-care centres and schools would be excluded from any possible furloughs or layoffs.

The proposal conflicts with the agreement reached by the current Vantaa City Council, which states that “employees will not be laid off or furloughed as a savings measure”.

The city’s weak financial position has been known for some time. Vantaa’s finances have been strongly negative since 2024, and last year the city recorded the largest deficit of any municipality in Finland.

The forecast for 2026 also shows an operating deficit of more than 60 million euros. The reasons include the weak construction-sector cycle, the city’s record-high unemployment and falling tax revenues.

In an interview with Yle in April, Timonen said that reopening the council agreement was one possible way to address the situation.