Finland-based Cruise and ferry shipbuilder Meyer Turku and its client shipowners have been severely affected by the COVID-19 pandemic and planned lay offs have been turned into job losses as a result.
Turku shipyard started negotiations about temporary layoffs in the middle of March. Since then, the corona virus pandemic influenced market situation of the shipyard’s customers’ is coming visible and is now forcing Meyer Turku to change the scope of the negotiations.
These negotiations will include the permanent layoff of 450 people and another 900 are affected by other measures. These include temporary layoffs of different length, work time adjustments and other arrangements. All personnel groups and levels are part of the negotiations.
“The corona pandemic has changed the situation unexpectedly and totally. We are facing the fact that the corona-caused pause in cruising requires to stretch the order book. We are currently discussing the details with our customers. This new situation will force us to take painful adaptation measures to secure a sustainable future for Finnish cruise ship building and the network”, CEO of Meyer Turku, Jan Meyer, stated.
“Our preparations have been for the future. Now unexpectedly that future has changed and we have to adjust to that new future. Instead of a further ramp-up from one to two large ships delivered per year until 2023, the estimation is now that Turku shipyard will in the future build one large cruise ship per year and not further ramp-up.”
The exact changes to the building and delivery times of the seven ships in Meyer Turku order book (formerly reaching until 2025) are still under negotiations with the shipyard’s customers.
In 2019, Meyer Turku made a loss of €109.7m mainly due to the delayed delivery of the LNG-fuelled Costa Smerelda which was handed over in December 2019. . In February, it was announced that delivery of Carnival Mardi Gras would be delayed from August until October this year. Also in February, the company announced that construction of Costa Toscana – a sister to Costa Smerelda – had begun.