By SHANNON HAUGLAND
Sentinel Staff Writer
Calling it the “most painful decision” in its 53 years of operation, Allen Marine said today that it will furlough 76 percent of its workforce in Southeast Alaska in response to the coronavirus pandemic.
The layoff will affect 81 employees in Sitka and 48 in other parts of Southeast. In addition, the company has notified hundreds of seasonal workers that their planned start date will be delayed, pending cruise ship schedules.
The company said the planned workforce furlough is from March 16 (Monday) through March 31, while the company continues to monitor the state of the cruise industry, specifically as it affects Southeast Alaska.
Allen Marine builds boats at its Sitka shipyard and a major part of its business is providing cruise ship visitors with wildlife viewing and sightseeing excursions with its fleet of passenger boats based in Sitka and other Southeast towns.
Company spokesman Zak Kirkpatrick cited the declaration of “a local disaster emergency” in Sitka on Sunday, and said Allen Marine is complying with recommendations by government and health authorities to help prevent and stop the spread of the virus.
“For months the COVID-19 pandemic has caused significant financial repercussions for our locally owned family of companies,” Kirkpatrick said in a news release today. “Hourly developments have hurt the prospects of an Alaska cruise season, which would be devastating to our business and many others in the region. Traveler uncertainty has resulted in a major lack of new bookings and an accelerating number of cancellations for our small ship cruise line, Alaskan Dream Cruises. Official government health warnings against cruise travel have caused further damage.”
Allen Marine ships sit empty at the dock this morning. (Sentinel Photo by James Poulson)
The company said the furloughs were for 81 year-round employees in Sitka, 40 in Juneau and 8 in Ketchikan.
Allen Marine cited news Friday that Canada had shut down its ports to cruise ships with more than 500 passengers and crew through the end of June.
“All ships departing out of Seattle are required to touch a foreign port under an existing act of Congress (Jones Act), therefore our entire Alaska season is halted until they are reopened,” the company said.
“As one of the largest employers in the community of Sitka, our companies will comply with the declaration, which includes limiting gatherings of over 50 people as recommended by the CDC,” the announcement said. “This will further impede the progress and work the shipyard team needs to perform to be ready for a potential season. Due to these unprecedented circumstances, as of yesterday, March 16th, we have furloughed 129 full-time, year-round employees across our divisions in Sitka, Juneau, and Ketchikan — by far the most painful decision we’ve made in our 53 years of operation. These are not just employees – they are individuals who are part of a tight-knit Allen Marine family.
“We’re aware that the declaration of a national emergency opens the door for additional benefits for employees affected by COVID-19. We’re desperately awaiting more information about this program from both state and federal agencies so we can guide furloughed employees in receiving help. We’re heartened by the knowledge that Sitka is considering relief efforts, such as utility bill deferment. We hope other municipalities will consider similar aid. The furlough is planned for two weeks while we continue to monitor developments in the cruise industry, especially the outlook of the Alaska season.”
As to the 450 seasonal workers, most have been told that their season will not start until at least late June, pending the cruise ship schedules. Some in the seasonal workforce will be employed by the small ship line, Alaskan Dream Cruises – which have between 12 and 76 passengers.
“As of today we plan on sailing in early May, but we are monitoring developments by the hour,” Kirkpatrick said.
The announcement today also said:
“One of our greatest joys in business is providing transportation for school groups, non-profits, and other charities throughout Southeast Alaska. This is another one of the many reasons we hope small business economic relief promised by the federal government can be realized sooner (rather) than later.”
The company also noted the thousands of others relying on the tourism industry, including small operators, retail shops and food vendors.
“We hope we can all pull together as health authorities, governments, companies, and citizens to curb COVID-19 and its resulting illness,” Allen Marine said. “At the same time, we hope economic relief is made available to the many people and businesses who cannot weather a summer season with significant loss of income, or worse, no income at all.”
