Aker Not to lay off Staff

Norwegian broadcaster NRK today reported that Aker Solutions' fabrication yard in Egersund, Norway, will be letting 1,500 temporary workers go after the new year. While it is common practice at the yard to adjust the temporary workforce to existing activity levels, no decision has been made to do so.

The yard currently employs about 2,200 workers, both temporary and permanent, for work on 14 projects. Activity levels are nearly record high as several projects are at an intensive stage of work. The workload is expected to come down next year and the need for contractors will be reduced as projects are completed. This is in line with the yard's plans.

"We are currently tendering for several new projects for our Egersund yard and we are confident that we will secure new work to maintain a robust activity level also during the last half of 2015," said Per Harald Kongelf, head of Aker Solutions in Norway. "We have no plans to lay off staff."

The use of contractors is part of the yard's business model and has typically fluctuated from year to year. The yard typically uses contractors when activity levels are high and scales back this use as projects are completed. The contractors are often hired in from sub-suppliers and customers and have contracts for specific periods.

The table below shows the fluctuations in the yard's workforce since 2010. The numbers are comprised of permanent and temporary labor.

Time     Number of workers at yard
Spring 2010     2,000
Fall 2010     400
Spring 2013     2,900
Fall 2013     900
Spring 2014     1,500
Fall 2014     2,200