WILLEMSTAD - Employees of Damen Shiprepair Curaçao, a subsidiary of the Dutch Damen Shipyards Group, have rejected the proposed agreement on reforms within the company. This means that the management will need to engage in further discussions with the labor union.
Damen Shiprepair Curaçao, which specializes in ship repairs, was acquired by Damen from the Curaçao government in 2017. Since then, the company has struggled to be profitable. Last year, it incurred a loss of 5.5 million euros.
In reality, the loss was even greater as Damen wrote off approximately 20 million euros in previously provided loans in the Netherlands. Additionally, the company received financial support of 40 million euros from both the Dutch and Curaçao governments.
However, Damen expects the company to break even or make a profit this year. Last year, 78 employees were already laid off, and a recovery plan is expected to be implemented with the consent of the staff.
Despite the challenges, the company appeared optimistic earlier this year and stated in its policy plan that it was on the right track. The employees were expected to show more flexibility to sustain the company. However, 82.6% of the 325 employees (including 161 flexible workers) were against the proposed changes.
This means that the management's plans cannot proceed for now. Director Peter Luiten expressed his disappointment and predicted difficult times ahead. He questioned what can be expected from all other stakeholders if the employees are not willing to contribute to the improvement process.
The next steps are currently unclear. The company will engage in discussions with the Labor Mediator of Curaçao and other government representatives in the coming days to address this situation.