Contemplated Reductions of the Labor Force

Monday, February 26, 2007
The management of Odense Steel Shipyard Ltd. has decided to initiate negotiations for a reduction in the number of employees due to difficulties in obtaining new orders. According to the Management the reduction may amount to approximately 140 salaried employees in the administration, design and engineering departments. There will be a continued need for approximately 440 salaried employees and efforts towards obtaining new orders will continue. The Yard presently employs approximately 575 salaried and 2,600 waged employees. The management of Odense Steel Shipyard Ltd. and employee representatives will immediately initiate negotiations, and a negotiation committee will be established in order to reduce the impact of the contemplated reductions. At the upcoming negotiations the Yard is open to all proposals, including establishing a job centre, to reduce the impact of the contemplated reductions of the labor force.

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