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Jobs go at Matson

Jobs are being lost at Jones Act boxship operator Matson Navigation as the company braces itself for a continued slump in demand.

Pay increase freezes and reduced performance targets are also in the offing, parent Alexander & Baldwin (A&B) announced on Tuesday.

Allen Doane, chairman and chief executive of A&B, said: “Ongoing initiatives to decrease our costs include workforce reductions, commencing with steps taken today to pare staffing by 10 percent at Matson Navigation.”

This is due to the “expected continued slowdown in economic activity”, A&B’s statement read.

“Matson plans to reduce its non-union headcount by approximately 60 positions, augmenting position eliminations that resulted from hiring freezes adopted in 2007 and 2008,” the statement continued.

Matson’s president Matthew Cox said: “Measures involving employees are difficult; however, it is important that Matson realign its cost structure to current demand.”

Doane continued: Other measures to be implemented over the coming months at various A&B business units include: elimination of salary increases; continued reductions in general and administrative expenses; and reductions in incentive award targets, profit sharing targets and workforce levels.

“And while fourth quarter and full-year 2008 earnings are expected to be good, these and other proactive measures are necessary in view of the current economic climate.”

A&B announced in October that Oakland-based Matson’s quarterly operating profit and revenues fell from the previous quarter as a result of the slowing Hawaiian economy.