Vantaa Initiates City-Wide Co-Determination Negotiations to Address €15 Million Savings Target
The City of Vantaa is preparing to launch large-scale co-determination negotiations as part of efforts to address its deepening financial crisis. The proposed measures, which could affect up to 8,500 municipal employees, aim to achieve savings of approximately €15 million, according to reports from Helsingin Sanomat (HS) and Yle.
Yle reports that City Manager Pekka Timonen has submitted a proposal to the Vantaa City Board to initiate the negotiations, which would, in principle, cover all sectors of the city. The board is set to discuss the matter in its meeting on Monday, 10 August (HS). The estimated impact on personnel is around 200 person-years, though no reductions are planned in core services such as education or early childhood education. However, administrative roles within these sectors may be subject to restructuring (HS).
The proposal has drawn criticism for contradicting the current city council’s agreement, which explicitly states that "personnel will not be dismissed or laid off as a cost-saving measure" (Yle). Despite this, the city’s financial struggles have made such measures increasingly likely. Vantaa has recorded the largest municipal deficit in Finland, with losses accumulating since the beginning of 2024. The city’s financial forecast for 2026 projects an annual deficit exceeding €60 million (Yle).
Several factors have contributed to Vantaa’s financial woes, including a downturn in the construction sector, record-high unemployment, and declining tax revenues (Yle). In an interview with Yle in April, City Manager Timonen had already hinted at the possibility of revisiting the council agreement as a potential solution.
While the negotiations would apply broadly across the city’s workforce, Yle notes that staff in daycare centres and schools are expected to be exempt from layoffs or dismissals. The final decision on whether to proceed with the co-determination negotiations will be made by the City Board following Monday’s meeting.