Danish shipowners have welcomed emergency government measures to pay the salaries of employees at risk of losing their jobs as a result of the coronavirus.
The maritime industry was already coming under pressure from reduced passenger numbers before the country closed its borders to foreign nationals on Saturday.
Owners' organisation Danish Shipping welcomed the initiative to pay up to 75% of wages in some cases, for up to three months.
"It is no secret that the recent measures to close the borders, in particular, have already had major consequences for many of our members," said chief executive Anne Steffensen.
"That is why I am glad that we have succeeded in landing this slightly non-traditional tripartite agreement so quickly.”
Danish Prime Minister Mette Frederiksen said companies must not fire workers or they will receive no compensation.
Cash to avoid a crisis
"We must do everything we can to avoid throwing Denmark into an economic crisis as a result of the coronavirus. We must do everything we can to keep Danish business and employees as much out of the crisis as possible," she said.
The Oslo-Copenhagen route has been closed, but a large number of other routes are open to freight.
A number of shipping companies have temporarily suspended or reduced their ferry connections, however.
“As shipping companies, we have a very special corporate social responsibility. Both to tie the country together, but also to make sure the goods are delivered to the supermarkets, so of course we keep sailing,” Steffensen added.
“But when almost no travellers are on board, it goes without saying that not much staff is needed. That is why I am pleased that the agreement here gives the shipping companies the opportunity to repatriate staff in order to maintain as many jobs as possible in the shipping companies and on our ships.”
Employees will also take holiday
Salary compensation is payable from 9 March to 9 June on 75% of monthly wages up to DKK 23,000 ($3,440).
The company then pays the remaining 25%.
Workers on hourly rates can get up to 90% of DKK 26,000.
Employees must contribute five days of holiday.
Danish media reported that the aid package will be "fully instantaneous" to avoid layoffs at companies like Fjord Line and DFDS.
The shipping union Metal Maritime also urged companies not to lay off staff and called for calm.
"The coronavirus crisis leaves an impression on the lives of many seafarers. The aid package to avoid lay-offs will be crucial," the group said in a statement.
For employees of Fjord Line, the agreement on the relief package means agreements already reached on emergency solutions for workers will lapse.
Fjord Line deal to be renegotiated
“Further complications arose [Saturday] with the agreement in Fjord Line, where the union representatives had made an indescribable effort to find solutions," added Metal Maritime chairman Ole Philipsen.
"Unfortunately, Fjord Line did not manage to carry the agreement through the company in-house, and thus there is no clarity at present about the situation for our members in the company."
He said he expects the union will start off negotiations based on the aid package from teh government.
Denmark became the first major shipping nation to close its borders to all nationalities due to the coronavirus.
These border control measures, which came into effect at midday on Saturday, will remain in place until 13 April 2020.
Cruiseship traffic halted
Denmark’s Department of Justice said the restrictions will also include a complete stop of all cruiseship traffic to Denmark.
Last week it emerged that an employee at shipowners’ association Danish Shipping had contracted Covid-19 and was now being quarantined.
Denmark has introduced its most drastic interventions in public life since World War II as it seeks to curtail the virus.
Workers are being asked to stay at home, while social contact is being discouraged.
However, Danish shipowners were putting on a brave face on Friday, with J Lauritzen posting on social media that despite taking a number of serious precautions to reduce the risk of spreading the coronavirus it was “open for business as usual”.
