Layoffs due to increased fishing fees

All fishermen employed by the seafood company Einhamar Seafood in Grindavík were laid off at the end of the month. However, all of them will be rehired.

Stefán Kristjánsson, CEO and owner of Einhamar, told mbl.is that the matter concerns organizational changes.

It was reported in RÚV’s midday news that twenty fishermen had worked for Einhamar, but Kristjánsson says that is not correct.

“This is not quite accurate. Einhamar owns one boat with four crew members, and then there are two other boats that land their catch with us. All of these crew members were given notice, but they will all be rehired — this is purely about organizational changes,” he explained.

Fishing fees and reduced quotas

The organizational changes involve merging two positions into one, meaning each boat will now have two officers and two deckhands. Kristjánsson emphasizes again that all employees will be rehired.

“If there are too many officers, they can either rotate the officer roles among themselves or simply work as deckhands,” the owner says of the restructuring.

Kristjánsson cites two main reasons the company felt compelled to implement these changes.

“This is due to increased fishing fees and reduced catch quotas. The outlook for the cod stock over the next few years is bleak. The Marine and Freshwater Research Institute warns that quotas will likely decrease over the next two to three years. So we had to respond and protect ourselves,” Kristjánsson says about the reasons behind the restructuring.

Finally, Kristjánsson adds that despite everything, Einhamar is doing well, and operations are expected to ramp back up around the Merchant’s Weekend (Iceland’s August bank holiday).