Employment, Estonia, Legislation, Real Estate

International Internet Magazine. Baltic States news & analytics Friday, 19.04.2024, 15:45

Estonian State Real Estate Co makes 118 employees redundant

BC, Tallinn, 11.05.2015.Print version
Estonian Riigi Kinnisvara AS (State Real Estate Co – RKAS) on Friday filed a request to the Unemployment Insurance Fund for collective termination of a total of 118 employment contracts, LETA/Postimees Online reports.

Mostly these are employees who work in maintenance of real estate that the managing of which the company took over last year.

 

RKAS board member Elari Udam explained the redundancies of the skilled workers with the fact that during the real estate reform, the state has accelerated handing over property to RKAS and, increasingly, the buildings are handed over with the service staff.

 

RKAS strategy stipulates however that property maintenance services are outsourced and procurement services carried out so far have had the desired mass effect, enabling the state to save money, said Udam.

 

The state-owned RKAS was created in 2001 to more efficiently manage real estate owned or used by the state.

 

RKAS today manages more than a thousand buildings with total space of one million square meters, including 255 office, 205 education and research, 322 internal security, and 32 culture-purpose buildings.

 

The company employs over 300 people.






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