Viking Line’s cooperation negotiations have concluded

Viking Line has concluded its cooperation negotiations concerning land-based staff in Finland and Åland. The negotiations began on September 1, 2020. Similar negotiations in Sweden in accordance with the Swedish Act on Co-Determination in the Workplace were concluded in mid-September, while negotiations with land-based staff in Estonia are expected to be completed in October. The ongoing coronavirus (COVID-19) pandemic has caused a serious deterioration in the Group’s operating conditions, and cost-cutting measures are required. The company has therefore carried out a reorganization of the functions of its land-based organization in order to achieve savings, improve operational efficiency, ensure the company’s future competitiveness and secure its economic position.

Since March 2020, operations have been dominated by the travel restrictions introduced, with the consequence being a reduced travel propensity in the company’s markets.  Due to the current pandemic situation, restrictions are still in place on travel between Finland and Sweden as well as between Finland and Estonia. The international market has also been drastically affected. It is difficult at present to estimate how long the coronavirus pandemic will last and what the effects will be on Viking Line’s future earnings, financial position and cash flow. “The coronavirus pandemic has been overwhelming for passenger ship companies, and unfortunately many Viking employees must now experience the economic effects of this. It feels unfair, but is unavoidable. In this challenging situation, adaptation measures are unfortunately necessary to ensure the company’s future operating conditions. We will be forced to start up operations in a new way once the pandemic has been overcome. It is important that we are competitive when there is a recovery,” says Viking Line’s President and CEO, Jan Hanses.

The negotiations have involved the entire company’s land-based staff of about 570 people in Finland, Sweden, Estonia and Åland. The measures have led to a reorganization, cuts, centralization and streamlining of some functions as well as changes in some people’s job descriptions in order to better meet the company’s current and future needs. Nearly 200 people have been affected by the negotiations, and staff cuts amounts to a number of 180. About 70 people will be offered new jobs and employment contracts.  In addition to the staff cuts, most of Viking Line’s land-based and shipboard staff will continue to be on part-time or full-time furlough.  

Shipboard staff

As for shipboard staff, the Swedish-flagged Viking Cinderella concluded negotiations in accordance with the Swedish Act on Co-Determination in the Workplace in October, with the result being a staff reduction of 76 jobs. Some of these people may be offered work in jobs that have changed. On the Estonian-flagged Viking XPRS, negotiations on staff reductions were concluded, with the result being a staff reduction of 56 jobs.

For further information:

Jan Hanses, President and CEO, Viking Line Abp, jan.hanses@vikingline.com, tel: +358-18-27000

Johanna Boijer-Svahnström, Senior Vice President Corporate Communications, Viking Line Abp, johanna.boijer@vikingline.com, tel: +358-18-27000