Release Date: 06 June 2008
Release ID: 826
During the past week, the management of Odense Staalskibsværft A/S - Lindø - has had discussions with representatives of the yard's employees about the serious financial situation. Even though the employees have signalled their support to the yard, also by concrete proposals, the yard management has concluded that it has not been possible to reach an agreement with the employees as to how the necessary savings can be implemented. Consequently, a common recommendation to the board from the yard's management and the employees about the future of Lindø is not possible.
The savings should, amongst others, be viewed in the light of the international business cycle and the severe competition on the world market.
Accordingly the management has recommended to the board that the number of employees at Lindø, with respect of existing newbuilding contracts, be adapted in such a way that the yard will gradually reduce its business to a lower cost level. One of several measures is the intention to immediately cut the number of employees by up to 250.
"The board has adopted the management's proposal and with regret we have had to realise that the negotiations in the past week between management and employees did not lead to an agreement as to how the difficult financial situation of the shipyard can be solved. In order to strengthen Lindø's possibilities of survival in the long term, however, it is necessary that the yard's expenses be markedly reduced," says Lars-Erik Brenøe, Chairman of the Board.
Lindø's management will now start discussions with the works committee and the shop stewards of the yard with the aim of minimising the number of necessary lay-offs and preparing a programme that will ensure the best possible counselling of employees who may have to leave the yard.
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