Norwegian Cruise Line Holdings, mother or father firm of NCL, Oceania Cruises and Regent Seven Seas Cruises, terminated 9 % of its shoreside workforce earlier this week, in accordance with the Miami Herald. NCL didn’t clarify why it was 
essential to terminate practically a tenth of its workers, significantly throughout the vacation season. In the meantime, NCLH promoted its CEO’s son to a profitable place (see under) as president of a NCLH model, Oceania Cruises.
NCL launched a conclusory and gobbledygook assertion that it took “a number of prudent actions throughout our enterprise to align with our strategic priorities.”
The Miami Herald referred to NCL’s SEC submitting which mentioned that “value minimization initiatives” to be able to obtain “sustained, worthwhile development” had been what precipitated the layoffs.
Cruise Industry News mentioned NCLH has over 3,500 full-time shoreside workers (per its 2021 Environmental Report), which means layoffs might whole over 300 workers.
The Wealthy Get Richer
The Miami Herald identified that “Frank Del Rio, NCLH CEO (picture above), has come below hearth lately for his wage.” Reuters reported that there was “rising opposition” to CEO Del Rio’s excessive pay pay tied to “questionable practices.”
“Whereas the business was in disaster and laying off thousands of workers throughout the pandemic as the corporate misplaced as much as 150 million {dollars} a month, Del Rio made $36.4 million in 2020. He took in $22.6 million in 2021.”
CEO Del Rio (senior) is by far the best paid cruise govt on this planet. Together with his compensation in 2015 of practically $31,000,000, he had earnings of over $129,000,000 for a 5 12 months interval, together with $22,590,000 in 2018, $17,808,000 in 2019, $36,400,000 in 2020 and $22,600,000 in 2021.
As Skift revealed, Del Rio’s exorbitant revenue is over 1,000 occasions greater than the median wage at NCL of $19,319.
In 2021, the New York Instances included Del Rio (senior) in an article titled “C.E.O. Pay Remains Stratospheric, Even at Companies Battered by Pandemic” the place it wrote:
“Norwegian Cruise Line barely survived the 12 months. With the cruise industry at a standstill, the corporate misplaced $4 billion and furloughed 20 % of its employees. That didn’t cease Norwegian from greater than doubling the pay of Frank Del Rio, its chief govt, to $36.4 million.”
Allow them to eat cake? Together with his compensation in 2015 of practically $31,000,000, NCLH CEO Del Rio (senior) had earnings of over $129,000,000 for a 5 12 months interval, together with $22,590,000 in 2018, $17,808,000 in 2019, $36,400,000 in 2020 and $22,600,000 in 2021.🚢🐷
— James (Jim) Walker (@CruiseLaw) December 16, 2022
Like Father Like Son
Whereas NCL was unceremoniously terminated hundreds of its workers, it introduced that Del Rio’s son, 44-year-old Frank Del Rio Jr., was promoted to president of Oceania Cruises. To make method for Del Rio’s son, the present president of Oceania, Howard Sherman, shall be changed and can assume the place of what NCLH is asking a “particular advisor.”
Frank Jr.’s employment contract is attached and offers:
- Base annual wage of $500,000.00;
- Incentive bonus;
- Fairness award;
- Retirement, Welfare and Fringe Advantages;
- Medical Govt Reimbursement Plan;
- Money automobile allowance of $1,500.00 per 30 days / $18,000 per 12 months; and
- Paid trip of 4 (4) weeks per 12 months and “all different vacation and depart pay typically out there to different equally located executives of the Firm.”
Skift reported this summer season that Del Rio Sr.’s “automobile allowance alone was a whopping $27,600″ ($2,300 a month).” The brand new cruise govt Del Rio (Junior) additionally stands to gather many hundreds of thousands of {dollars} in incentive bonuses and fairness awards along with his $500,000 wage.
Tons of of NCL workers fired earlier than Christmas however CEO Del Rio’s son will get a soft job as president at @OceaniaCruises Luxurious automobile allowances between #cruise execs Del Rio Sr. & Jr. alone (over $45,000 a 12 months) are a number of occasions greater than the median annual NCL pay of simply $19,319.
— James (Jim) Walker (@CruiseLaw) December 16, 2022
NCL Jacks Up Its Service Charges
Earlier this month, we reported that NCL is drastically increasing its service charges by an unprecedented 25% for many cabins, efficient January 1, 2023. NCL’s friends staying in The Haven and different suites will face a $5 improve to a whopping whole of $25 per individual per day.
Del Rio senior has developed a repute of being a grasping cruise tycoon who has gouged its customers before, with further greater prices, together with elevated room companies prices, automated gratuities, restaurant cowl prices, service charges for continental breakfast room service, and each different conceivable expense that clients might probably be “nickeled and dimed” for.
Even the common cruise bloggers and cruise cheerleaders like The Points Guy (Gene Sloan) are calling NCL’s newest charge hike “unprecedented” and “enormously” excessive. Mr. Sloan writes:
“With the rise, a household of 4 staying in a collection pays a cool $700 in service charges throughout a typical seven-night cruise — a stage by no means earlier than seen within the cruise enterprise.”
The favored @CruiseGuy (Stewart Chiron) tweeted “YIKES!” NCL “to additional hike cruise service prices to ranges by no means earlier than seen in cruising.”
The Crew Members Proceed to Get Screwed
A portion of the cash generated on NCL’s cruise ships by the elevated charges will go towards non-tip earners (like kitchen employees, cleaners, and so forth.) to defray the wages that NCL pays. And a few of the charges described by cruise cheerleaders as “unprecedented” and “enormously” excessive charges will go towards NCL’s earnings and govt salaries, as I defined in NCL Increases Service Fees Again – But Will NCL’s Crew Remain Underpaid While CEO Del Rio Continues to be Paid an Average of $25,000,000 a Year?
To not be fired? 🚢🫤🪓
— James (Jim) Walker (@CruiseLaw) December 16, 2022
Tis the Christmas Season (Bah Humbug?)
For a whole lot of fired NCL shoreside workers, it is going to be a bleak vacation season. However for the Del Rios, junior and senior, they will start to consider what luxurious automobiles to lease with their $3,800 a month (greater than $45,000 a 12 months) automobile allowances, which is a number of occasions higher than the imply NCL compensation of simply $19,319.
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Picture Credit score: Frank Del Rio (senior) – Mark Elias/Bloomberg through Getty Photographs and Storify.
