Feb 26 • 22:01 UTC 🇪🇪 Estonia Postimees

State enterprises have taken a direction towards 'platform labor'

Estonian state enterprises are moving towards platform-based labor, shifting from traditional employment contracts to more flexible service contracts.

Estonian state enterprises, like Riigimetsa Majandamise Keskus and Omniva, have recently begun to adopt a model of 'platform labor' similar to those used by companies like Bolt and Wolt. This shift entails moving away from traditional employment contracts towards more flexible business relationships aimed at reducing costs and increasing workforce adaptability in sectors such as logistics and forestry. However, this trend has been met with significant criticism from labor unions and the Labour Inspectorate, which express concerns about the implications for employee rights and job security.

The Estonian Tax and Customs Board (MTA) has been actively combating the phenomenon known as 'OÜtamine,' which they classify as a form of hidden employment relationships. This issue has led to the agency pursuing tax claims and engaging in legal battles against these types of business practices. The Minister of Finance, Jürgen Ligi, announced a crackdown on this practice two years ago, underscoring the government’s commitment to safeguarding traditional worker rights.

In a recent initiative, Omniva has initiated a pilot project in Tallinn, introducing a classic platform labor model in state logistics services. This move indicates a significant transformation within public sector employment in Estonia and raises questions regarding the future of labor standards and the potential erosion of worker protections as the state ventures into the same flexibility that has characterized the private sector's employment practices.

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