Boskalis_CSR_report__2016

Care for human capital CSR 2016 – Boskalis 48

general wage level increase at Boskalis. However, this defined unconditional pension indexation led to high volatility in the pension liabilities in the statement of profit or loss under IFRS due to fluctuations in the discount rate and deviations in the calculation of the pension liability compared to the method in which PGB calculates and establishes the premium. This resulted in undesirable and disproportionate effects on the statement of profit or loss and the balance sheet. To mitigate these undesirable effects, an amendment has been made to the indexation arrangement. This amendment and the associated compensation was approved by the Works Council in December 2016. Subsequently the unconditional indexation was abolished as per 31 December 2016. To compensate for the change from unconditional to conditional indexation, Boskalis has provided an amount to PGB that allows for a one-off 5% increase in accrued pension rights as of 31 December 2016. The majority of our employees (76%) are on a permanent appointment (2015: 75%) and of this core staff many have a long tenure with the company. Staff turnover is relatively low at 9.2% (2015: 8.3%). Turnover within the Dutch organizations was even lower at 6.7% (2015: 4.8%). The increase in turnover in 2016 is mainly caused by a higher (voluntary) resignation rate and is partly explained by the fleet rationalization program. For projects we supplement our core staff with employees drawn from a flexible shell. Depending on the project requirements these employees are hired locally where possible or appointed on a temporary contract, which in many cases is discontinued at the conclusion of the project. In 2016 we were able to welcome 1,903 new employees (2015: 1,454) while 3,090 employees left Boskalis. Of these 3,090 employees, 672 were permanent employees, 1,345 were from the flexible shell and 1,073 left Boskalis as a result of divestments. In relation to the fleet rationalization program, 250 jobs were discontinued as per year end, divided over permanent and flexible positions. In some of the regions where we operate, there is a risk of becoming infected with diseases such as malaria, Ebola and Zika. To mitigate the risk to our employees, we have a long-standing policy of providing vaccinations and (regular) medical check-ups as well as running prevention programs. In addition, in 2003 we established an Emergency Response Team (ERT) to enable a rapid response in the event of a health crisis. The team comprises employees from our SHE-Q and HR departments and doctors from the Travel Clinic of the Havenziekenhuis hospital in Rotterdam, the Netherlands. After the Zika outbreak in South America in 2016 the ERT issued a policy statement on the virus, explaining the nature and symptoms of the virus and advised on preventive measures to be taken. Prevention of occupational and other diseases Contract type and staff turnover