Boskalis_CSR_report__2016

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Labor practices

Boskalis reports on employees employed by majority owned entities (2016: 6,153 employees). More details on the reporting scope can be found on page 65 About this report. 38% are covered by a Collective Labor Agreement, including most of our crew and project staff. Corporate and operational staff are covered by separate agreements reached in consultation with the employee representation. Boskalis offers decent working conditions and is committed to freedom of association and the right to collective bargaining. We endorse the guidelines of the International Labour Organization (ILO), the UN Global Compact and the OECD Guidelines for Multinational Companies in this respect. Boskalis engages in close and structural consultation with the employee representation bodies regarding subjects relevant to our employees, in accordance with the laws of the countries where we are based. Our operations in the Netherlands account for 56% of our workforce. The dialogue with the Dutch Works Council was once again open and constructive in 2016. Topics discussed included the competence management framework and the safety and financial performance of the company. In 2016 the Dutch Works Council rendered a positive advice on the fleet rationalization plan, the joint venture with Kotug, the acquisition of VolkerWessels’ offshore-related activities and the cancellation of the voluntary large-company regime. The Works Council consented to the social plan as a result of the fleet rationalization plan and the adaption of the Boskalis pension scheme. EMPLOYEE ENGAGEMENT

of the Boskalis fleet. In the period up to mid-2018 a total of 24 vessels will be taken out of service: ten at Dredging and fourteen at Offshore Energy. As a result, around 650 jobs will be lost worldwide in this period, mostly involving crewmembers of the vessels concerned. Following a careful process and in close consultation with the Dutch Works Council a social plan was drawn up, which was also approved by the majority of the Dutch trade unions. The most important elements of the social plan are: ‚ ‚ good arrangements should redundancy prove inevitable. At the end of the year under review more than 250 jobs had been discontinued. The timing of the remaining workforce reduction is partly dependent on factors including the current deployment of vessels and national legislation. In order to maintain a cost-efficient business proposition we will be looking at ways of making our crewing model more flexible and variable without compromising safety and quality. Options under consideration include a more flexible crew-planning model whereby crew can be deployed across a pool of vessels and greater flexibility in crew composition. ‚ ‚ the principle of redeployment is leading; ‚ ‚ the establishment of a mobility center; In the wake of the fleet rationalization program we will also review our cost base at head office. A comprehensive cost study will therefore be conducted in the first half of 2017. While the objective of this study will be to reduce costs where possible, it will also take the organization’s growth ambitions into consideration. The cost review should therefore be seen in the broader context of our organizational alignment and strategic agenda.

Pension schemes

ADAPTING TO THE NEW REALITY

The Boskalis pension plan, managed by the PGB pension fund, includes an unconditional indexation for all Boskalis participants that were employed on 31 December 2014. This unconditional indexation is also applicable for members of the Board of Management. The level of indexation was equal to the annual

In light of the strongly deteriorated market conditions a fleet rationalization study was conducted in the first half of 2016. Because these conditions are expected to persist in the coming years the decision was taken to adapt the size and composition

CSR 2016 – boskalis