Neste Oil Oyj : Neste Shipping completes its statutory employer-employee
Neste Oil Corporation
26 March, at 10:00 a.m. (EET)
Neste Shipping completes its statutory employer-employee negotiations
Neste Oil's shipping subsidiary, Neste Shipping Oy, has completed the
statutory employer-employee negotiations initiated on 4 February this year.
Following the negotiation process, Neste Shipping has decided to terminate the
ship and crew management agreements in respect of three vessels jointly owned
with the Swedish-based Stena Group and time-chartered to Neste Shipping with
agreements ending 2017.
As a result of the termination of these agreements, the number of Neste
Shipping personnel, both at sea and in the office, will be adjusted by 124
persons. 21 persons will be made redundant and the other reductions will take
place through voluntary retirement and the termination of fixed-term
employment contracts as allowed for under the terms of these contracts. The
reductions in personnel will take place mainly during 2013.
These measures are the result of Neste Shipping's need to improve its
profitability and secure the continuity of its operations. Improved
profitability will be essential to enable Neste Shipping to make the major
statutory environmental investments that will be required between 2014 and
2017, deal with rising costs, and progress with other initiatives needed to
secure the continuity of its operations into the future.
The goal of the overall efficiency improvement program is to make the business
profitable by increasing revenue and reducing costs by a total of around EUR
15 million annually. The decisions now taken will save approx. EUR 4 million
in fixed costs annually. The plan is to achieve the remainder of the program's
target through other efficiency-enhancement measures.
When the statutory employer-employee negotiations were launched, Neste
Shipping projected that it would need to reduce personnel numbers by a maximum
of 130. Neste Shipping currently employs around 450 persons.
Neste Oil Corporation
Senior Vice President, Communications, Marketing and Public Affairs
Further information: Arvo Ruotsalainen, Managing Director, Neste Shipping,
tel. +358 (0)50 458 8205
Neste Oil in brief
Neste Oil Corporation is a refining and marketing company concentrating on
low-emission, high-quality traffic fuels. The company produces a comprehensive
range of major petroleum products and is the world's leading supplier of
renewable diesel. Neste Oil had net sales of EUR 17.9 billion in 2012 and
employs around 5,000 people, and is listed on NASDAQ OMX Helsinki.
Neste Oil is included in the Dow Jones Sustainability World Index and the
Ethibel Pioneer Investment Register, and has featured in The Global 100 list
of the world's most sustainable corporations for many years. Forest Footprint
Disclosure (FFD) has ranked Neste Oil as one of the best performers in the oil
& gas sector. Further information: www.nesteoil.com
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Source: Neste Oil Oyj via Thomson Reuters ONE
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