Teska vrimena prijatelju moj...
Teska vrimena prijatelju moj...
Evo tema mi je malo zamrla pa da ubacim koju novitadu.
Dear Colleagues,
As we enter another new year, we can reflect that we have experienced one of the sharpest declines in the history of the global economy. The resultant decrease in demand for goods and services, and the decline in world energy (oil and gas) demand has led to the decreased demand for shipping.
Tanker freight rates have plummeted, in many cases barely covering operating costs, and many owners are laying up ships.
Shipping industry consultants, Drewry's fleet growth projections, indicate that Officer supply continues to increase and that the projected Officer shortfall is reducing. The reason for this apparent change in trend is the reduction in the world fleet growth, due to new building cancellations, and increased vessel scrapping. In other words, the supply-demand dynamics seem to be changing.
The global recession has created widespread uncertainty, with many other companies focusing on liquidity, and seeking to defer cost decisions. It is also clear that the trend of wage escalation over the past couple of years, with rampant poaching of Officers, is now at an end.
Throughout 2009, we have focused on specific cost savings initiatives, such as the CEO Challenge and our 3-Year Strategic Plan, and taken assertive action to make the necessary changes. We also conducted Manning Level reviews in both the Conventional and Gas fleets.
One of the most positive initiatives has been the establishment of â??OneTeamâ??. From a management perspective I fully agree with Steve Tucker's comments in his end of year report, we have indeed come a long way in a year, and this group of Senior Officers certainly engages management on a wide range of issues, facilitating constructive discussion, and producing tangible outcomes. Graham, Geir, and myself, look forward to continue working as part of OneTeam during 2010.
Our Number 1 priority is Safety, and in 2010 we will have a continued focus on costs, and progressing key initiatives:
We changed our employment market data gathering processes to more effectively monitor market changes, identify trends, and to be in a position to make strategic decisions. We continually update our market intelligence with our regional offices, and industry contacts. Our current benchmarking indicates that we should hold our present salary position in our established employment markets, and we have concluded that there will be no salary adjustment for all of our â??internationalâ?? Officers and Ratings.
Extended Medical Cover - We acknowledge our previous commitment to the 'international' fleet to introduce this benefit, however, in view of the significant cost of these comprehensive programs, which have also escalated, we must exercise prudence in terms of new capital investment in these challenging financial times. We are pleased to advise that we are still progressing our plans for offering medical coverage to all of our seafarers, and we will introduce this medical cover in the Philippines in 2010. We are unable provide details on the next phase of implementation beyond 2010 at this time, and we will revert regarding our plans for the wider introduction of extended medical cover just as soon as we are in a position to do so.
Senior Officers Bonus - We continue to focus on Overhead costs, including shore-based compensation models. In this regard, steps have been taken to align more closely with employment market practice, and in managing costs and line of sight to the company's ability to pay - we have in effect reduced the bonus target and increased the impact of the Company Performance Factor (CPF) in the shore-based bonus scheme. In this context, we believe it is consistent to make similar adjustments to the Senior Officer Bonus Scheme.
We intend to reduce the the bonus multiplier from $2500 to $2250; and to have 50% based on the Vessel Performance Factor (VPF), and 50% based on CPF.
The new bonus formula will be: $2250 x {(VPF/2 + CPF/2)}.
The Super Bonus will reduce from 30% to 25% for when all targets are met.
We have also decided to reduce the number of KPIs for measuring VPF, and we are currently considering 4 KPIs with a Safety related theme - once finalised the Fleets/shipteams will revert with full details.
These adjustments will be effective from 2010.
To be clear: 2009 Bonus payable in 2010 will be calculated using the existing formula - however, we should advise that we anticipate a significantly lower CPF.
The 2010 Bonus, based on performance this year, and payable in 2011, will be calculated using the revised formula.
We are considering the introduction of an Individual Performance Factor (IPF) in 2011, to fully align with the shore-based bonus scheme - we will keep you advised and will revert on this in due course.
In the 'international' Gas fleet, the identified manning level changes that were agreed with a representative Officer group, will also be progressed in 2010.
We will change flag and Norwegian Ratings on 2 Shuttletankers at the end of January/early February 2010, as agreed with ITF and Norwegian unions. The Norwegian CBAs have been finalised for 2010 with all Norwegian unions and the NSA (Norwegian Shipowners Association).We will also have a separate focus on Brazil Shuttle operations.
We have completed CBA s with Spanish unions and committees for our Spanish flag LNGs and Tankers - and will progress the agreed next phase of change of Spanish crew to Filipino on one further Tanker in 2010.
The main union negotiated agreements (EBAâ??s) in Australia will continue to run through 2010/2011.
We have made further required reductions in our Training budget, however, we have retained a focus on identified core competence requirements. We have also maintained our commitment to our Cadet training program.
We will drive the universal use of SCOPE throughout Teekay, with greater focus on practical assessment - and further develop our Centre of Excellence programs, including dynamic learning.
The Teekay 3-Year Strategic Plan provides a line of sight to our priorities, it describes how we will "Survive" through this very difficult economic and market downturn and "Thrive" by preparing ourselves for future opportunities. I would like to share with you some of Bjorn Moller's comments from his year-end message, he said "..if we continue to hold the line on costs, and if the year progresses well, 2010 could be the year we move to 'Thrive' and start looking forward again". I feel this provides the appropriate pragmatic and positive indicators to galvanise our efforts in 2010.
Our objective is still to maintain a stable, competent, empowered, and motivated workforce, strategically aligned, and committed to achieving our business goals - and to emerge from the current economic downturn even stronger.
We look forward to your continued support.
