Genfer Lloyd

Genfer Lloyd Strongly Denies Social Dumping Practices

29.03.2006

Unfortunately this may have reflected badly not only on Genfer Lloyd, but also on certain of our customers. We therefore find it necessary to present the following clarification: Genfer Lloyd pays its workers in the offshore and shipbuilding industry an hourly wage from approx. NOK70 and upwards. In addition our workers receive free meals and housing, free travel and work clothes, free HSE- and 'Arbeidsmiljo'- education, as well as participation in social events of various sorts. They are also well covered by life- , travel- , and work injury insurance. Genfer Lloyd feels that this compensation package more or less equals the current minimum tariff within the Norwegian offshore and shipbuilding industry, and consequently strongly denies any charges of so called 'social dumping' practices. The story in Norwegian media relates to a Polish worker who was allegedly paid NOK42 per hour, and who in his employment contract with one of Genfer Lloyd's subcontractors was the subject of certain penalty clauses related to his potential disclosure of the terms of the contract and potential change of employer. The facts are that the worker's wage of NOK42 was net of approx. 40% income tax, which his employer was paying. Consequently the wage before tax was approx. NOK70. With regard to the penalty clauses, these were unknown to Genfer Lloyd Norway, and will not be used in our employment contracts. Nor are such clauses acceptable to us in any of our subcontractors' employment contracts. Where they may exist, they will be removed, and not used in any future contracts. After Genfer Lloyd was made aware of the existence of these contracts, we have had an open and positive dialogue with the union at Karmsund Maritime. We have made it clear to the union that the contracts will be changed, and that Genfer Lloyd in general will continue the positive cooperation with unions we have been enjoying, be it related to work conditions, HSE, or other issues. Since our inception two years ago, Genfer Lloyd has experienced strong growth. In a market with very tight demand for qualified workers, we have attracted more than five hundred well qualified workers. That would obviously not have been possible if our conditions and work practices had not been perceived as very attractive by our personnel.

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