Boskalis to shed 24 vessels, costing 650 jobs

JULY 8, 2016 — Papendrecht, Netherlands, headquartered Royal Boskalis Westminster N.V. has completed a fleet rationalization study announced earlier this year and has decided to take 24 vessels out of service in the coming two years. This will mean the loss of approximately 650 jobs worldwide during this period.
 
"After a few very busy years the market outlook for Boskalis has changed drastically as a result of continuing low energy and commodity prices," said CEO Peter Berdowski. "The volume of work in the market has fallen sharply and this is putting pressure on the utilization rate of our vessels. Because we expect these market conditions to persist in the coming years it is essential that we adapt the size and composition of our fleet to this new reality. We are fully aware that this intended decision is drastic and that it will have a major social impact. While we will try to absorb the work force reduction through attrition and redeployment wherever possible, compulsory redundancies unfortunately look to be unavoidable. A reduction of the number of vessels and jobs is however necessary to ensure that Boskalis remains healthy going forward."

The 24 vessels to be taken out of service in the 2016-2018 period include ten from the Dredging division and fourteen from the Offshore Energy division. They will include trailing suction hopper dredges, cutter suction dredges, anchor handling tugs and heavy transport vessels.

The fleet rationalization will be implemented through the scrapping, sale and lay-up of vessels. The average age of the vessels earmarked for scrapping or sale is in excess of 30 years. Vessels offered for scrapping will be dismantled at certified shipyards in accordance with the Hong Kong Convention and Boskalis' own standards.

The 650 employees to be made redundant represent a cross-section of nationalities, with around 150 Dutch staff on Dutch payroll being affected.

Where possible the workforce reduction will be absorbed through attrition and redeployment. Despite this, compulsory redundancies cannot be ruled out. Boskalis has requested the formal opinion of the Dutch Works Council and will invite the trade unions to consult on a social plan in the short term.

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