Hapag-Lloyd to cut salary on September 1
Severe internal cost-cutting measures being put in place by struggling container line Hapag-Lloyd include salary cuts of between 10%-20%, while “further headcount adjustments” are being considered, Lloyd’s List has learned.
In addition, a strict hiring freeze will continue through 2010, according to an internal memo from the line’s America region.
The memo says that while deliberations are ongoing concerning final measures for Region America, it can advise on a series of moves already going ahead.
All level one, two and three staff worldwide have been requested to accept a salary reduction of 10%-20%, starting on September 1 and continuing throughout next year.
There will be no voluntary end-of-year bonus for 2009 and no salary increases for 2010.
“Further headcount adjustments are being considered in view of our current and anticipated volumes; this is on top of the significant headcount adjustments already undertaken as part of our reorganisation in April but is necessary to keep our productivity and expenses at acceptable levels; similar measures are being considered for other regions and central departments.”
The memo says other cost saving measures are being considered “and there continues to be a strict hiring freeze through 2010”.
The customary company-provided holiday party at the end of the year will not take place, “as a further signal of further required austerity”.
The memo describes Hapag-Lloyd’s recent financial agreements as “an important step to securing our future” and says the additional cost-saving measures required internally are a necessary part of the entire package of measures “so that all stakeholders contribute to ensure the long-term future of Hapag-Lloyd”.
It concludes: “According to experts, this is the worst financial crisis which the liner shipping industry has faced since the advent of containerisation in the 1950s.
“As you know, we are working hard on all fronts to improve our revenue and further reduce all external costs (vessel network, imbalance, terminals, inland, equipment) and are encouraged by the results thus far achieved.”
In addition, a strict hiring freeze will continue through 2010, according to an internal memo from the line’s America region.
The memo says that while deliberations are ongoing concerning final measures for Region America, it can advise on a series of moves already going ahead.
All level one, two and three staff worldwide have been requested to accept a salary reduction of 10%-20%, starting on September 1 and continuing throughout next year.
There will be no voluntary end-of-year bonus for 2009 and no salary increases for 2010.
“Further headcount adjustments are being considered in view of our current and anticipated volumes; this is on top of the significant headcount adjustments already undertaken as part of our reorganisation in April but is necessary to keep our productivity and expenses at acceptable levels; similar measures are being considered for other regions and central departments.”
The memo says other cost saving measures are being considered “and there continues to be a strict hiring freeze through 2010”.
The customary company-provided holiday party at the end of the year will not take place, “as a further signal of further required austerity”.
The memo describes Hapag-Lloyd’s recent financial agreements as “an important step to securing our future” and says the additional cost-saving measures required internally are a necessary part of the entire package of measures “so that all stakeholders contribute to ensure the long-term future of Hapag-Lloyd”.
It concludes: “According to experts, this is the worst financial crisis which the liner shipping industry has faced since the advent of containerisation in the 1950s.
“As you know, we are working hard on all fronts to improve our revenue and further reduce all external costs (vessel network, imbalance, terminals, inland, equipment) and are encouraged by the results thus far achieved.”