300 jobs go at Norway salmon processor
Isfjord Norway in Orkanger, Trøndelag county, has filed for bankruptcy following long-term financial problems.
The news is reported in FriFagbevegelse, an online newspaper about working life and the trade union movement.
The employees received the news at a general meeting yesterday. The company has laid off several employees in recent weeks as a result of the difficult economic situation.
"The atmosphere was quite bad. There is a lot of frustration among many employees. This is very painful," Boubacar Soumeiga, shop steward for 90 members of the Norwegian Food and Beverage Workers' Union (NNN), told FriFagbevegelse.
Lost NOK 27 million
Isfjord Norway had a turnover of NOK 1.1 billion last year, but ended with a negative operating result of NOK -27 million (£2.14m).
The company processes salmon and trout, but does not have its own fish farming operations. According to FriFagbevegelse, the company has struggled with increased raw material costs and more difficult access to fish.
The bankruptcy creates great uncertainty among employees, who now risk having to wait for salary payments through Norway's wage guarantee scheme.
Hoping for new owners
Despite the bankruptcy, there is still hope that parts of the business can be continued with new owners.
"We have worked hard to find solutions and have considered several alternatives in order to continue the business. Among other things, we have been in dialogue with four different stakeholders with the aim of raising new capital and ensuring continued operations. Unfortunately, we have not succeeded in finding a solution," said general manager Liv Randi Sira to Avisa Sør-Trøndelag, as reported by FriFagbevegelse.
The goal remains to find new owners who can ensure continued operation of the facility in Orkanger.
