Plagued by inflation that has reduced the spending power of much of the world’s workforce, the United Nations warned in late 2022 that people’s real wages would be “significantly lower”.
But one company bucked the trend and reportedly paid employees a “windfall” that was more than four years’ salary at the end of 2022.
Evergreen Marine, a shipping giant in Taiwan, has been one of the main beneficiaries of the surge in consumer demand during the COVID-19 pandemic, which has led to a surge in revenue for the shipping industry. The company’s 2022 revenue is expected to exceed $20 billion, more than triple its 2020 revenue.
Bloomberg quoted Taiwan’s Economic Daily News on January 9 as saying that because business was so booming, Evergreen Shipping would pay a bonus equivalent to 52 months’ salary. Some employees allegedly received awards of more than $65,000 on December 30, 2022.
An anonymous source familiar with Evergreen’s bonus structure told Bloomberg that the level of the bonus depends on the seniority and position of the employee. Only contract workers working in Taiwan are eligible for the maximum bonus, the source said.
Evergreen did not respond to Fortune’s request for comment, but a company spokesman told Bloomberg that the company’s year-end awards have always been based on individual performance and company performance.
Although the company’s business demand has soared for two years in a row, company chairman Xie Huiquan reportedly told investors in October 2022 that a stronger dollar and soaring inflation could dampen demand in the coming quarters.
Ground staff at Evergreen Airline Services Corp., part of the Evergreen Group, also received bonuses, according to the Taipei Times. The newspaper reported on Jan. 9 that EVA Air had handed out bonuses equivalent to $1,305 and increased vacation pay for the Lunar New Year holiday after employees threatened to strike to protest wages.
The “Long Ci” blocked the Suez Canal
In 2021, a ship of Evergreen Shipping blocked the Suez Canal (The Suez Canal), which had a huge impact on the international supply chain, and there was a lot of speculation for a while.
At that time, a huge container ship “Ever Given” ran aground in the Suez Canal, an important waterway in Egypt, causing a shock to global trade and killing one person during a six-day salvage operation. It is estimated that as much as $10.9 billion in cargo was blocked every day at the time.
A few months later, Egypt signed an indemnity agreement with the ship’s Japanese owner and his insurance company. Terms of the agreement were not made public, but Egyptian authorities reportedly claimed $550 million.
The Suez Canal is the shortest shipping link between Europe and Asia and one of the busiest shipping lanes in the world.
On January 9, a Ukrainian container ship carrying corn ran aground briefly due to technical problems, and the route was temporarily blocked. Authorities said the outage was expected to cause only minor delays. (Fortune Chinese website)
Translated by Agatha
Much of the world’s workforce, gripped by inflation, is seeing its spending power decline, with the UN warning at the end of 2022 of a “striking fall” in real wages.
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 benefit 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 January 9, citing Taiwan’s Economic Daily News. Some employees were said to have received more than $65,000 on Dec. 3
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 Hsieh reportedly told investors in October 2022 that a strong US dollar and surge 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 January 9 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 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 January 9, it was temporarily blocked after a Ukrainian container ship carrying corn suffered technical problems and briefly ran aground. Authorities said the breakdown was expected to cause only minor delays.
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