Thursday, October 29, 2009

Hapag- Lloyd announces pay cuts

My question is, what took them so long?

They were told back on Oct. 1 they needed to do this.

It's almost a month later.

From Lloyd's List

However, Hapag-Lloyd indicated today that its hand has effectively been forced, as taking an axe to payroll and other costs is a condition of the €1.2bn ($1.8bn) in loan guarantees it is getting from the German government.

Today? I read this in the press on Oct. 1. Did they wait until they got the official demand via snail mail or something? Did they think the German government wouldn't notice?

These are the cuts. Very reasonable, in my opinion. I went through the same thing back in the 80's when there was a recession. Does anyone remember there was a recession in the 80's?

HAPAG-LLOYD has announced internally an across the board pay cut of at least 5% for all staff worldwide including seafarers, with senior employees facing a 20% reduction in salary, the company has confirmed.
In Germany, Hapag-Lloyd staff have already agreed to a scheme, which will see salaries cut by 5% for those employed under the collective wage agreement and 7.5%-plus for those on individual contracts.

A spokesman said: “We all have to contribute. It is 20% for the board, 15% for the managing directors, 10% for senior directors, 7.5% for what we call level four, which is middle management, and 5% for the rest of the staff.”

It has already been announced that there will be no end of year bonus this year, and that pay will be frozen in 2010.

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