Estonian shipping line Tallink Group is to cut staff salaries by 30 percent as a result of the financial and other impact of the coronavirus pandemic.
The decision will affect around 3,900 employees, both marine and shored-based staffing, including members of the board of directors.
Tallink board chair Paavo Nõgene will take a 50 percent pay cut, the company says.
"Today, we are in a situation where the economic impact of the coronavirus emergency on our company is so great that we are having to make tough decisions and take steps to ensure the sustainability of the company and retain our employees as far as is possible," said Nõgene.
"I also thank the union and its members for their constructive dialogue over the past few days, which has allowed us to work together to find the best possible solution," said Nõgene.
Tallink Group plans to make the cut for a two-month period initially, starting from April.
Government to provide €250 million in income support
Meanwhile the Estonian coalition government approved a decision Friday to channel €250 million towards the maintenance of employee income as a result of the economic effects of the coronavirus pandemic, via the Unemployment Insurance Fund (Töötukassa).
The benefit can be paid to any employee whose volume of work or whose salary has been cut by at least 30 percent, directly as a result of the coronavirus pandemic impact, and will generally be based on 70 percent of the employee's average gross salary, but will not exceed €1,000 in a month, while the employer is required to continue to pay a minimum €150 gross salary per month to those employees.
Editor: Andrew Whyte