You must have heard that there is a slump in logistics all over the world and it was first caused by the semiconductor chip shortage last year and now it has been caused by the economic condition all over the world which has caused a huge drop in demand as people are struggling to buy products that are meant to be for luxury and entertainment. Due to this, the shipping companies have also started to reduce their freights and are trying to be as lean as possible. However, there are Taiwanese shipping companies out there that are providing bonuses to its workers despite there being a slump.
This shipping company named Yang Ming Marine Transport Corp has decided to hand out bonuses of up to 30 months to its workers after approval of a US$75 million bonus package by its investors last week. However, this is on top of the 12-month salary paid at the beginning of this year which is known as the year-end bonus and is handed out every year. When asked about this bonus, Yang Ming said to Bloomberg that “Company rules dictate the shipping firm must distribute 1% of its previous year’s profit to employees as compensation” which is why they need to give this bonus to its workers. However, the company did mention that it is up to the company to distribute the profit among workers and it is up to them to decide who gets how much.
This is all thanks to the surge in shipping during the pandemic due to global demand as well as the rates being high for shipping during Covid as it was meant to be the safest way to ship products due to their being restrictions on air and road travel due to the quarantine rules in place. However, it is worth noting that the happy days for shipping companies might be over for the next few years as the current economic conditions are such that there is a massive slump in shipping across the industry and it is possible that no bonuses will be handed out in the next few years.
