Layoffs in Fish Processing in Small Towns

News

Layoffs in Fish Processing in Small Towns

It is considered likely that 30 people will lose their jobs in Dalvík (pop. 1,400) due to the imminent bankruptcy of the local fish processing company Norðurströnd. Its request for insolvency will be heard at Northeast Iceland District Court on Thursday.

fish-processing-lumpsucker_ps
Photo by Páll Stefánsson.

The company’s financial reorganization has been worked on for three months but the bankruptcy appears unavoidable. The staff was given the news last week. The fish processing plant has not been in operation for several months, ruv.is reports.

Mayor of Dalvík Svanfríður Jónasdóttir said it is serious when such a large company ceases operation, both because of loss of jobs and the atmosphere in town.

Meanwhile, all ten employees of the fish processing company Drangur in Drangsnes (pop. 67) in the West Fjords have been laid off and it looks as if five other of the village’s workers, who are employed by the local fisheries company, will lose their jobs as well.

According to visir.is, a poor situation in salt fish markets in Southern Europe, lack of haddock quota and unsold lumpsucker roes contribute to a rapidly deteriorating outlook on the village’s employment market, jeopardizing one third of local jobs.

ESA

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