City Board to Consider Launching Cooperation Negotiations to Renew City Operations and Balance Finances
The City of Vantaa’s City Board will consider a proposal to launch cooperation negotiations at its meeting on 10 August. The aim of the negotiations would be to renew the city’s operations and organisational structure while balancing the economy in response to changes in the operating environment and the implementation of the new city strategy. The negotiations are based on an adjustment need of up to €15 million in personnel expenditure.
Vantaa’s financial situation requires new measures to restore balance to the city’s finances. The city’s economy has been clearly in deficit since 2024, and the forecast for 2026 also shows a deficit of more than €60 million. In the 2027 budget framework, the deficit for the financial year is estimated at €69.9 million, even though the framework already includes balancing measures worth €32 million.
In principle, the cooperation negotiations would concern all City of Vantaa employees, approximately 8,500 people, and all city divisions. The continuity of operations in daycare centres, schools and educational institutions will be safeguarded. Therefore, the approximately 5,500 employees and officials in the Education and Learning Division who provide statutory early childhood education and teaching services in specifically defined roles would be excluded from any potential layoffs or temporary lay-offs.
The negotiations are based on an adjustment need of up to €15 million in personnel expenditure. According to a preliminary estimate, potential redundancies could affect up to 200 employees. In addition, temporary lay-offs, part-time arrangements and other changes to employment terms could affect up to 700 employees. The number, scope and allocation of any personnel impacts will be specified during the cooperation negotiations.
“We are renewing the City of Vantaa’s operations and organisation and balancing our finances to respond to changes in the operating environment. This requires solutions and careful consideration of even difficult alternatives. Any personnel impacts will be examined in the cooperation procedure as openly as possible, in accordance with the law and in consultation with employees,” says City Manager Pekka Timonen.
The negotiations would also cover alternatives to potential measures, solutions proposed by employees, as well as change security arrangements and other support measures for staff. Savings are expected to be sought through measures such as reorganising operations, making use of natural attrition, limiting recruitment, reviewing the use of fixed-term employment contracts, and exploring opportunities for redeploying personnel.
If the City Board decides to launch the negotiations, the first negotiation session is tentatively scheduled for 18 August 2026. The exact targeting of any measures and the extent of personnel impacts will be clarified during the negotiations. Any decisions will be made only after the cooperation negotiations have concluded.