Employment, Estonia, Legislation, Markets and Companies, Technology

"I don't know the exact number, but probably more than 200 of the people live in Keila," spokesman for the city government Valdur Vacht told BNS. According to Vacht, PKC has promised to help find the employees new jobs and the city will also offer its help.

"Considering that the current unemployment level in Keila is low and entrepreneurs are looking for new workforce, we believe that the people being laid off will find new jobs," Vacht said.

Estonian Minister of Health and Labor Jevgeni Ossinovski said on Thursday morning that the decision of PKC to close its Keila plant and lay off 613 employees is a great loss, but the state and the Unemployment Insurance Fund will offer every person being laid off an individual plan to find a new job.

"The Unemployment Insurance Fund is ready to offer all necessary services and help people find a new job. Every person will get a personal approach, and his or her abilities and wishes will be taken into account," Ossinovski was quoted by spokespeople as saying.

According to Ossinovski the closing of every company is a loss to Estonia – mainly for the families who are directly influenced by that, but also the society as a whole.

PKC Eesti, Estonian arm of the listed Finnish manufacturer of cable harnesses for the automotive industry, is to close its plant in north Estonian city Keila next March and lay off 613 employees.

"We are moving from skill based production to knowledge based economy which will result in relocating labor-consuming production to PKC plants situated in Lithuania and Russia. PKC Eesti understands the complexity of the situation for the employees, and fully cooperates with the Unemployment Insurance Fund, local municipalities, possible employers and everybody else," member of the board of PKC Eesti Merle Montgomery said in a press release.

According to the company it has to look for production possibilities in countries where production costs are smaller and possibilities of the labor market are more flexible to meet competition in the long run.

Last summer PKC closed its plant in Haapsalu and transfered some employees to the Keila plant. It can be seen in the PKC Group's annual report that the company is planning to close the Keila plant, but not before the first quarter of next year when customer projects have been fulfilled.

According to the company competence units will remain at Keila to serve European and South American business. The closure of the Keila plant will not result in additional non-recurring items.