Negotiating with the German metal workers union, Meyer Werft said in a press statement today that the shipyard and supplier employees must be prepared for a 40 percent reduction in the paid work load for 2021.

In addition, Meyer stated, there will be virtually no demand for new ships until 2022 and that it expects ship prices for deliveries from 2023 onwards to drop dramatically.

Despite this, the shipbuilder said it offered job security for 2021, while asking the union to be flexible on pay rates, holiday bonuses and other measures to deal with the crisis.

Meanwhile, talks between Meyer and IG Metal and the workers’ council were said to have broken down. However, to secure its future, Meyer said, it has to achieve a savings target of 1.25 billion euros in Papenburg.

And, looking forward, the shipbuilder said it can only win orders if it is competitive on pricing.

Negotiations are expected to continue.