Norwegian Seafood Companies calls new layoff rules a bluff

At the end of June, Norway announced the unemployment benefits period for layoffs in the fishing industry would be extended from 26 to 52 weeks within 18 months. It also said it would come into effect as soon as possible. After now learning this will be from December 1, the Association of Norwegian Seafood Companies (Sjømatbedriftene) claimed the Norwegian Government's promises look like "a deceptive game and a layoff bluff."

"Sjømatbedriftene has worked hard and long to get the layoff scheme for the fishing industry extended, and we were thrilled and felt that we had succeeded in getting our point across when the Government announced the changes in June," said CEO Robert H. Eriksson.

"Since then, there has been total silence until last Friday. We haven't heard a word until now, even though the two ministers assured this would come into effect as soon as possible. This could have been in place the same day they announced it in June. I am not impressed, and it all appears to be a bluff," he added. 

Uncertainty in Sjømatbedriftene's member companies

The Association of Norwegian Seafood Companies now recalls that, in June, following the joint announcement on changes to the layoff rules by the Ministers of Labor and Inclusion, Tonje Brenna, and Fisheries and Oceans, Marianne Sivertsen Næss, the former said people should be ensured an income when they suddenly find themselves without a job for an extended period.

"The current rules have negatively impacted employees in the fishing industry, which the Government wants to correct. We have listened to the industry and therefore propose to strengthen the rights of the employees," the head of Labour and Inclusion in Norway added.

As reported by WeAreAquaculture, at the time of the announcement, Sjømatbedriftene was satisfied with what they called a "victory," but also called for the change to take effect immediately. Since then, the lack of clarity on when it would take effect has meant that the Association has received many inquiries from its member companies on the matter.

However, Sjømatbedriftene claimed that, although it has been in contact with both ministries and has worked throughout the summer and so far to get an answer as to when the changes will come into effect, they have mostly been met with silence. "No one has been able to give a clear answer on when the rules will come into effect. It's simply unbelievable," stated Eriksson. 

Hope was given, but nothing has changed

In announcing the new layoff rules for the fishing industry, the Norwegian Government stressed that it would introduce these changes because, at present, the sector's special rules for suspensions do not always benefit employees. Employers have no wage obligations at the beginning or end of the suspension period and, unless they rejoin the company, workers are not entitled to receive salary or unemployment benefits, except if they are dismissed and can therefore claim ordinary unemployment benefits.

The lack of wage obligations could leave those suspended in the fishing industry completely without income after the maximum unemployment benefit period of 26 weeks is exhausted within 18 months. "Although this applies to relatively few, the consequences for those laid off seem unreasonable and unintended," read the announcement then issued jointly by the Norwegian Ministries of Industry and Fisheries and Labor and Inclusion.

Sjømatbedriftene's CEO now said that both Ministers, Brenna and Sivertsen Næss, as well as the Government, have let things go on all these months without taking any action.

"With this announcement, they tried to create hope for both employees and the fishing industry, which at the time was and still is in a very vulnerable and challenging period. They have left the entire seafood industry on tenterhooks, but the result is that nothing has changed: Those whose layoff periods expired in the summer and early fall received no income protection as Brenna promised. They have been left without income or have been forced to receive a dismissal notice," Eriksson said.

New layoff rules will not only affect workers

Now, after learning that it will be December 1, the CEO of the Association of Norwegian Seafood Companies assessed as positive that Minister Sivertsen Næss has already told the industry when it can expect the changes to come into effect, but remarked that he would never have imagined it would take almost half a year.

"This must be a world record for lack of implementation capability. To go out and say that they have listened to the industry, and that the changes will come into effect as soon as possible, has been a huge bluff from start to finish," Robert H. Eriksson continued.

The fishing entrepreneurs stressed the new layoff rules will not only affect workers, and pointed out that the fishing industry has had special regulations in this area precisely because production is greatly affected by weather conditions, seasonal fluctuations, raw material availability, and, not least, quota levels.

"The Government introduced tighter layoff rules in 2022. Even then, we warned about the consequences. They have left both the industry and workers in a difficult squeeze for over two years, with people losing income and companies losing expertise. Now they also want to disregard all the factors the industry cannot control in terms of maintaining production by introducing a wage obligation. The truth is that the Government is giving with one hand and taking with the other," Sjømatbedriftene's CEO concluded.