Shipping firm that blocked the Suez Canal hands out bonuses worth more than 4 years’ salary to employees
Much of the world’s workforce, gripped by inflation, is seeing its spending power decline, with the U.N. warning of a “striking fall” in real wages at the end of last year.
But one corporation has bucked the trend, reportedly giving its employees mammoth windfalls worth more than four years’ pay as 2022 drew to a close.
Taiwanese shipping giant Evergreen Marine Corp. has been a major beneficiary of the pandemic-era boom in demand—and in turn, shipping—with its 2022 revenues expected to exceed $20 billion. That’s more than three times higher than its income in 2020.
On the back of its roaring success, Evergreen Marine is handing out bonuses worth up to 52 months’ salary, Bloomberg reported on Monday, citing Taiwan’s Economic Daily News. Some employees were said to have received more than $65,000 on Dec. 30.
A source familiar with Evergreen Marine’s bonus structure anonymously told Bloomberg that the size of the bonuses was dependent on workers’ level of seniority and function. Only staff with Taiwan-based contracts were eligible for the biggest payouts, the source said.
Evergreen Marine did not respond to Fortune’s request for comment, but a spokesperson for the firm told Bloomberg that year-end bonuses had always been based on individual and company performance.
While the company has enjoyed two consecutive years of soaring demand, President Eric Hseih reportedly told investors in October that a strong U.S. dollar and surging inflation could dampen demand in coming quarters.
Elsewhere, ground staff at Evergreen Airline Services Corp.—another company under the Evergreen Group umbrella—have also been given payouts, according to The Taipei Times. The news outlet reported on Monday that the firm offered its workers bonuses worth $1,305 and an increase in vacation pay for the Lunar New Year holiday, after they threatened a walkout over pay.
Ever Given stops shipping
Back in 2021, a vessel operated by the Evergreen Marine infamously blocked the Suez Canal, causing huge disruption across international supply chains.
Global trade took a hit when huge container ship the Ever Given became wedged across the major Egyptian waterway, prompting a six-day operation to refloat the ship during which one person was killed. It was estimated that the blockage held up as much as $10.9 billion worth of cargo per day.
Months later, Egypt signed a compensation deal with the ship’s Japanese owner and its insurers. Terms of the agreement were not made public, but Egyptian authorities had reportedly demanded $550 million in damages.
The Suez Canal, the shortest shipping link between Europe and Asia, is one of the world’s busiest waterways.
On Monday, it was temporarily blocked after a Ukrainian container ship carrying corn suffered technical problems and briefly ran aground. Authorities said the breakdown was only expected to cause minor delays.
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