HF Eimskipafelag Islands has announced considerable arrangements in light of the Icelandic economic situation, unfolded among other in a substantial recession in imports. Already, fewer vessels are now servicing Icelandic import and export, with the number decreasing from 11 to eight, as well as other rationalisations in the sailing systems, local systems and several other factors of Eimskip’s business.
Eimskip’s transport business in Iceland has around 1.500 employees, with 900 based in Iceland. To avoid substantial lay-offs, it has been decided that salaries of those earning more than ISK 300.000 will be decreased by 10%, as well as limiting shifts and overtime. In spite of these actions, lay-offs of 25 employees in Iceland and 47 in Europe were unavoidable.
The estimated savings on an annual basis is ISK 2.4 billion, with ISK 550 million directly related to salary costs.
Gylfi Sigfusson, Eimskip President/CEO commented: “Just as any other company in Iceland, Eimskip is going through a rough period, notably in the import sector. On top of that, the situation in the international transport- and financial markets is proving to be a difficult one. In the light of this, Eimskip had few choices but these substantial arrangements. Of the two bad choices we had to make, it was more feasible in our minds to lower the salaries of those employees with an income of above ISK 300.000 than having to lay off even more employees in these difficult times the Icelandic nation is now facing.
Eimskip’s transport business in Iceland has around 1.500 employees, with 900 based in Iceland. To avoid substantial lay-offs, it has been decided that salaries of those earning more than ISK 300.000 will be decreased by 10%, as well as limiting shifts and overtime. In spite of these actions, lay-offs of 25 employees in Iceland and 47 in Europe were unavoidable.
The estimated savings on an annual basis is ISK 2.4 billion, with ISK 550 million directly related to salary costs.
Gylfi Sigfusson, Eimskip President/CEO commented: “Just as any other company in Iceland, Eimskip is going through a rough period, notably in the import sector. On top of that, the situation in the international transport- and financial markets is proving to be a difficult one. In the light of this, Eimskip had few choices but these substantial arrangements. Of the two bad choices we had to make, it was more feasible in our minds to lower the salaries of those employees with an income of above ISK 300.000 than having to lay off even more employees in these difficult times the Icelandic nation is now facing.
