Prisma Estonia narrowly avoided a loss in 2009.
TALLINN — To stave off an incredible 99.5 percent year-on-year profit drop, Prisma’s Estonian subsidiary is trimming the salaries of 700 employees by 12 to 15 percent instead instituting layoffs.
In February the Finnish-based supermarket chain reported a 319,780 krooni (€20,300) profit which is a massive fall compared to 65 million krooni (€4.1 million) profit in 2008. Janne Lihavainen, CEO of Prima Estonia told the [private_supervisor]business newspaper Äripäev in February that the profit fell down because the company did not reduce the labor costs in 2009 and also because of tight price competition.
Finnish newspaper Helsingin Sanomat reported on Tuesday that the supermarket chain is requiring employees to accept the salary cut or quit their job. Each of Prisma’s employees took the pay cut, noting that workers at competing supermarket chains have already made their job and salary cuts.
“Other companies cut the salaries last year already, here it happened just now,” Kersti Saumann, a Prisma salesperson told Äripäev. “It’s a normal process.”
However, Harri Taliga, director of Estonian Trade Union Confederation told Äripäev that Prisma was taking advantage of local conditions, asserting that in Finland the pay cuts could not have gone through due to more powerful unions. Union membership in the Baltic states remains low compared to other parts of Europe, a legacy of the Soviet Union experience and their developing economies. [/private_supervisor] [private_subscription 1 month]business newspaper Äripäev in February that the profit fell down because the company did not reduce the labor costs in 2009 and also because of tight price competition.
Finnish newspaper Helsingin Sanomat reported on Tuesday that the supermarket chain is requiring employees to accept the salary cut or quit their job. Each of Prisma’s employees took the pay cut, noting that workers at competing supermarket chains have already made their job and salary cuts.
“Other companies cut the salaries last year already, here it happened just now,” Kersti Saumann, a Prisma salesperson told Äripäev. “It’s a normal process.”
However, Harri Taliga, director of Estonian Trade Union Confederation told Äripäev that Prisma was taking advantage of local conditions, asserting that in Finland the pay cuts could not have gone through due to more powerful unions. Union membership in the Baltic states remains low compared to other parts of Europe, a legacy of the Soviet Union experience and their developing economies. [/private_subscription 1 month] [private_subscription 4 months]business newspaper Äripäev in February that the profit fell down because the company did not reduce the labor costs in 2009 and also because of tight price competition.
Finnish newspaper Helsingin Sanomat reported on Tuesday that the supermarket chain is requiring employees to accept the salary cut or quit their job. Each of Prisma’s employees took the pay cut, noting that workers at competing supermarket chains have already made their job and salary cuts.
“Other companies cut the salaries last year already, here it happened just now,” Kersti Saumann, a Prisma salesperson told Äripäev. “It’s a normal process.”
However, Harri Taliga, director of Estonian Trade Union Confederation told Äripäev that Prisma was taking advantage of local conditions, asserting that in Finland the pay cuts could not have gone through due to more powerful unions. Union membership in the Baltic states remains low compared to other parts of Europe, a legacy of the Soviet Union experience and their developing economies. [/private_subscription 4 months] [private_subscription 1 year]business newspaper Äripäev in February that the profit fell down because the company did not reduce the labor costs in 2009 and also because of tight price competition.
Finnish newspaper Helsingin Sanomat reported on Tuesday that the supermarket chain is requiring employees to accept the salary cut or quit their job. Each of Prisma’s employees took the pay cut, noting that workers at competing supermarket chains have already made their job and salary cuts.
“Other companies cut the salaries last year already, here it happened just now,” Kersti Saumann, a Prisma salesperson told Äripäev. “It’s a normal process.”
However, Harri Taliga, director of Estonian Trade Union Confederation told Äripäev that Prisma was taking advantage of local conditions, asserting that in Finland the pay cuts could not have gone through due to more powerful unions. Union membership in the Baltic states remains low compared to other parts of Europe, a legacy of the Soviet Union experience and their developing economies. [/private_subscription 1 year]
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