Leak memo discloses Norwegian Cruise Line is cutting its wage by 20% for its salaried workers and moving to a 4-day work weekly due to COVID-19
As the novel coronavirus continuously slams the industry, Norwegian Cruise Line announced a major amendment to its compensation structure to address cuts to its revenues. The on-going outbreak of the contagious virus around the different parts of the globe has sent a shock throughout the cruise and travel industries. Each country is being alert and making the appropriate actions to fight over this pandemic.
Starting March 30, 2020, Norwegian Cruise Line will lessen the compensation of its salaried employees by 20% but it’s still temporarily. Furthermore, this cruise line company will start practicing a 4-day work every week specifically from Monday to Thursday, for those employees that do not directly communicate or face the customer and will also pause all 401-K matches.
The above modifications on the work schedule are all set to go into effect by June 22, 2020, if and only if the business environment will let this happen or gives approval. Up to now, it’s still not clear on whether those employees who are working on ships have already seen many changes to their contracts. To give you an idea, in the cruise industry often covered six up to ten months wherein it includes room and boarding.
According to the statement released in a memo by Frank J. Del Rio, the CEO of the Norwegian Cruise Lines, the continuous effect and the severity of the current environment caused by the COVID-19 outbreak all over the world will require the company to be nimble and to adapt to the situations that it throws to make it through until the end of this challenging times. Also, he relayed that part of the company’s adaptation is making the most difficult decisions and sacrifices to stretch what the company has so they can make it through while the voyage is shutdown.
The Norwegian Cruise Line already announces the immediate postponement of all its cruises namely Norwegian, Oceana Cruises, and Regent Seven Seas Cruises until April 11, 2020. To give you some figures, its stock hovered to about $60 per share in January and extremely dropped to 28% which is now only equivalent to $7 per share.
Until now Norwegian Cruise Line has not yet to give a response to all of its requests for comment regarding this issue.