Estonian Air staff pick up record redundancy payments

Estonian Air's Boeing 737-500 at Stockholm Arlanda Airport in 1999 (Postimees/Scanpix)
12/22/2015 11:59 AM
Category: Economy

Töötukassa, the Estonian unemployment insurance fund, has paid out 607,000 euros to Estonian Air staff in redundancy payments, a record sum in the past two years.

On average, a former Estonian Air staff member received 4,700 euros in compensation for loosing his or her job.

The largest combined sum paid out last year by Töötukassa was 420,000 euros to the 210 police and border guard staff members who were laid off.

In 2013, the employment office paid out 711,700 euros to 262 former Eesti Energia Kaevandused AS workers.

Töötukassa did not pay all Estonian Air workers the full amount they were entitled to by their collective contract, as legislation sets limits on how much Töötukassa can pay out. Estonian Air representatives said the government should pay the difference but the government has rejected the claim, saying there is no need for such precedent.

The state-owned Estonian Air ended operations in November when the European Commission ruled that the state-aid given to the company was illegal, forcing Estonian Air to pay back the Estonian state tens of millions of euros the company does not have.

J.M. Laats

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