SOCIAL1

ANNUAL REPORT 2011

2 3Entrepreneurship is in our blood. Since its establishment,

113 years ago, Wagenborg has been continuously on the

lookout for opportunities and possibilities for improvement

and innovation. In doing so, we take acceptable risks and

aim for tangible results. This is reflected in the attitude of

our employees, who consciously and independently explore

opportunities and possibilities for their own work, for the

organisation and for our clients. The Wagenborg employee

thinks in terms of solutions. He or she achieves solutions

in cooperation with clients, and remains active until such

solutions have been realised. Cooperation is very much

the keyword. We all make every possible effort to reach

mutual targets together with colleagues and clients, even

if there is no direct own interest. It is all about contributing

to the group functioning. In that sense, we recognise the

importance of giving priority to the clients’ interests.

We work in an environment aimed at the content of

activities based on professionalism, trust and loyalty. Our

objective is to improve the quality of work for the client,

for our employees and for the direct environment. It is an

environment characterised by crises in the fields of credit,

currencies, governments and general confidence over the

past year.

We wish to be an organisation which can deal with every

change in circumstances. An organisation which has

‘learned how to learn’. One which learns from previous

mistakes and adapts working methods accordingly. The

linking of human efforts is the core of an organisation

process. An effective link between employees and between

transport modes is crucial for the continuity of Wagenborg.

That link enables us to find effective and efficient solutions

together with our clients and colleagues.

The following section gives a summary of the various

market developments with which our companies have been

confronted. The remainder of the Social Annual Report

reflects on our efforts to arrive at sufficiently qualified,

motivated, vital and involved employees. Employees who

jointly form an organisation, trading under a single and

unique flag. An organisation capable of realising the “Sign

of Solutions” slogan even in times of crisis.

Egbert Vuursteen Rob Wagenborg

CONTENTS INTROdUCTION1

1 pg 3 Introduction

2 pg 4 Developments

3 pg 12 Availability

4 pg 24 Deployability

5 pg 32 Motivation

6 pg 40 Vitality

7 pg 50 Social Involvement

8 pg 56 Afterword

4 5

2

dEVELOPMENTS

76profitably. We therefore worked more hours on average

versus previous years. This made great demands of the

flexibility and perseverance of our employees, due to many

large-scale projects taking place during holiday periods.

Their special efforts certainly deserve a compliment.

It was an exciting year for Wagenborg Offshore, which

is active in the oil and gas industry. This applied both in

maritime and in land-based activities, where there was

expansion in terms of equipment, activities and manpower.

Work in the maritime sector has been complicated as a

result of erratic decision-making regarding deployment

of extra equipment in the Caspian Sea. This is due to our

client’s hesitation on the starting date of the increased

production phase II. It may lead to a delay in the current

phase, but possibly also two years’ extra work. This is

true not only for us but for everyone employed on the

construction islands. Consequently, there may be even more

floating hotels required to house all workers. The arrival

of the latest hotel ship in Bautino in December brought the

total fleet in the Caspian Sea to approximately 30 vessels.

The negotiations with OMS Shipping, our Kazakhstan-

based partner, have moved into the fast lane. This is due to

They are very special ships which, besides being capable

of sailing under arduous icy conditions, are multifunctional

in terms of cargo, waste, crewing, etc.

Following a difficult start due to the long winter period,

it was an intensive year for Wagenborg Nedlift.

Declining demand from the construction sector, paired

with increased demand from the energy sector, resulted

in a shift to the heavier segment. We are also targeting

more long-distance transport and additional international

projects, including gas pipeline projects in Germany and

wind turbine activities based in the Eemshaven. Nedlift

worked in close cooperation with Stevedoring, Towage and

Wagenborg Projects & Logistics. We have opened a new

branch in Geleen in order to ensure national coverage for

our activities. The cooperative relationship between Den

Hartog, Reym and Wagenborg is being continued, with

even more direct services. The cooperation in Oman has

been terminated due to the effects of the crisis. On the other

hand a new cooperation has been formed with Collet &

Sons in the UK. The market in which Nedlift operates is an

extremely competitive one, and margins have been minimal,

forcing us to generate extra turnover in order to work

the production process at KNS was organised in such

a manner that all ships could be built as efficiently and

inexpensively as possible, without detriment to the quality of

the final product. The shipyard is responsible for managing

the ship’s construction, employing subcontractors where

necessary. This construction was devised in order to bundle

know-how and spread any risks. KNS built m.s.‘Eeborg’ for

Wagenborg Shipping and began work on two ice-breakers,

the ‘Sanaborg’ and ‘Serkeborg’ for Wagenborg Offshore.

The global economy once again found itself in

dire straits in 2011. This section gives a brief

summary of the various developments at the

Wagenborg divisions over the past year.

At KNS, this past year was characterised by better quality

and more efficient working methods. Most shipbuilders

sought solutions in low wage countries in recent years.

In order to remain competitive, each and every step of

8 9

plans to meet customer demand by extending the service

to include a clothing line, snacks and beverages, supplied

on location or from one of the stores. The port terminal in

Holwerd will be redeveloped for that purpose, with a new

lounge and shopping area, as well as a new access control

system.

Ticket sales will take place online where possible, in

order to simplify the flow and processing of passengers.

albeit to a more modest degree. WPD has extended its

services to include a water taxi, which is ideally suited to

user demand. These boats provide speedy ferry services

between Ameland and Holwerd and between Lauwersoog

and Schiermonnikoog. The water taxis are also an ideal,

on-demand solution for trips to the other Dutch or German

islands, or for a trip to or from Zoutkamp, Oostmahorn or

Harlingen, for example. Customers have shown themselves

willing to pay for these extra services. WPD therefore

future developments in Sachalin, Vietnam and Brazil.

Despite the disappointing summer, Wagenborg

Passenger Services transported many passengers,

as Dutch people chose to spend holidays at home due

to the crisis. Thanks to covenants signed with the Dutch

government, we shall be continuing our services to

the islands of Ameland and Schiermonnikoog for the

coming 15 years, once the appeals procedures have

been successfully completed. The m.v. “Rottum” , with

which WPD maintains the service from Lauwersoog to

Schiermonnikoog, is undergoing a complete overhaul at

KNS. The ship will be fitted with a new main engine and

a new bridge, the passenger lounges will be refitted and

toilet facilities installed, in order to make the lounges more

accessible. The revision also includes a new AC system

and renewal of the car deck coating. All this revision

work is necessary in order to meet the requirements for the

coming 15 years. The m.v. “Monnik” will also be modified,

Kazakhstan legislation determining that work will only be

contracted to western companies if they have roots with a

local entity. We have extended our activities in the oil and

gas world to include Wagenborg Oilfield Services (WOS).

WOS employs 29 people, and is engaged in the supply,

repair and modification of drilling risers, extraction of faulty

or broken drilling risers from the bore hole, and release of

jammed drilling risers. The WOS service activities around

the bore hole are a logical extension of the Wagenborg

Foxdrill services: rig moves, conductor driving/hammering,

construction and renovation of drilling rigs, etc. Drilling

companies have an increasing desire for quality services

and we recognise opportunities in non-western regions

in particular. Our first branch in Western Siberia is

developing nicely, while other continents will certainly also

become Wagenborg Offshore working areas in the future.

Wagenborg Foxdrill is already active in many countries,

with particular attention for Africa and the Middle East.

We are consulting intensively with our partner in Russia on

11healthy utilisation percentage.

In order to survive the crisis, the Shipping division focus was

on cost control and efficiency, which translated into even

further automation and improvement of work processes. The

general picture of the past 12 months was one of curbed

capital deployment, which in turn presented opportunities

for optimum concentration on know-how. By making such

efforts, we have reinforced our competitive position on the

one hand, while contributing to sustainable deployment of

our employees on the other.

been continuously deployed for the wind turbine project to

the north of Borkum. A push-tug was purchased in March

and the ‘Laga’ sold, to allow for towage of newly built hulls

and for inland pontoon transport. Alongside the regular

(port) towage work, the division carried out 3 salvage

operations. Wagenborg Stevedoring has increasingly been

developing into a logistic link in the Wagenborg transport

chain recently. Shipping, Towage and Reining are all

important partners in the loading/unloading of cargo. The

recent extension of Wagenborg Bulk terminal resulted in a

optimisation through increased productivity. We wish to

boost the quality level of Reining Warehousing via further

professionalization of the warehouse personnel. Reining

depends on good information and communication, both

internally and externally, in order to achieve good results.

Wagenborg Shipping also operated in a very difficult

market. Credit restrictions affected the volumes to be

shipped, while the trade in ships was at a very low pitch,

due to buyers struggling to gain finance. Despite selling five

ships, our fleet had grown to 180 seagoing vessels of 2000

to 20000 tons by the end of this year. The average age of

less than seven years makes this one of the world’s youngest

fleets. The newly built vessels are more than ever before

aimed at an efficient ratio between cargo capacity and fuel

consumption. Global deployability of this tonnage limits the

risks where possible, while the great spread in vessel sizes

and sailing areas, and the limited age makes Wagenborg

an interesting option for larger and smaller cargo clients.

Contracting of large cargo packages is gaining importance.

Just like last year, part of the Wagenborg Towage fleet has

This will all be provided in the form of “WPD Plaza” in

March 2012. Customers will be the first to notice all the

changes as a result of introduction of the new payment and

reservation system. Since early May, the website also offers

the option of booking a passenger car online, while e-tickets

have become available since mid-July.

Wagenborg Reining is gradually recovering, after

working hard at efficiency and implementing considerable

cost-saving measures. The cargo market was problematic

over the past year, and the low rates in particular made it

very difficult to compete with Eastern Europe, for example.

The average number of KM per day/per truck needs to be

increased to give more and more turnover. Our position

in Hungary is vital in order to keep up with the on-going

pricing battle in international transport, and good planning

and effective utilisation is essential. Forwarding is becoming

increasingly important alongside transport with the own

fleet, as it offers results without great investment, and is

necessary to generate extra turnover. Warehouse utilisation

was inadequate. The past year was characterised by further

10

12 13

AVAILABILITY

3

14 15better attune the inflow, through-flow and outflow between

the various divisions in the longer term. This section

discusses the current complement of personnel, the inflow

and outflow, the ratio of permanent versus flexible contracts

and the ageing of employees at Wagenborg

Personnel planning is essential in order to

determine the availability of employees required

to conduct our work safely and profitably, while

guaranteeing quality. The planning needs to take

account of the corporate strategy and changing

market situations, while effective planning

relies on insight into quantitative and qualitative

development of the complement of personnel in

both the short and long term.

We therefore organised an “in-company training” on

Strategic Personnel planning for HR employees in 2011.

Its purpose was to apply a consistent method of personnel

planning at all the Wagenborg companies, in order to

* 128 of whom are contracted from CORS:

The data shown excludes trainees, temp employees and those on a temporary suspension scheme.

Number of FTE also excludes % of the call-up employees.

In the male/female ratio, more than 90% of the Royal Wagenborg employees is male (see tables 2 & 3).

2008 2009 2010 2011

Total 2424 2964 3090 3208

Wagenborg Shipping 1136 1376 1442 1473 Wagenborg Offshore 266 305 272 421 Wagenborg Passagiersdiensten 102 113 119 103 Wagenborg Reining 331 515 618 625 Wagenborg Nedlift 387 444 436 405 Koninklijke Niestern Sander 202 211 203 181

Numbers employed per division

*

Complement of personnelWe are faced with both dejuvenation and ageing. The

ageing process results in a rapid and considerable loss of

know-how and experience, while it simultaneously becomes

more difficult to recruit young and well-trained personnel,

due to the more limited supply. Population prognoses by

the CBS statistics agency forecast the rate of ageing to

double in the years ahead of us. The total population will

continue to grow until 2040 but the potential working

population will decrease from 2012 on. It is essential that

we react to these developments. There are various solutions

for the difficult employment market situation, which include

optimum deployment of the available supply, increasing

the employment participation, increasing productivity,

recruitment of foreign labour and extension of the working

years. In the case of Wagenborg, it is also important that

employees continue to develop, that internal mobility is

improved and that the image as an employer is good. The

labour shortage requires sustainably deployable employees.

On 31 December 2011, Royal Wagenborg employed a

total of 3208 people. The table on the left hand page gives

a summary of the growth of the complement of personnel

over the past four years.

Male Female Total

Total 2928 213 3208

Numbers employed per gender 2011

Wagenborg Shipping 1408 65 1473 Wagenborg Offshore 374 47 421 Wagenborg Passagiersdiensten 87 16 103 Wagenborg Reining 581 44 625 Wagenborg Nedlift 372 33 405 Koninklijke Niestern Sander 169 12 181

Wagenborg Shipping 95,6% 4,4% 100,0% Wagenborg Offshore 87,9% 12,1% 100,0% Wagenborg Passagiersdiensten 84,5% 15,5% 100,0% Wagenborg Reining 93,0% 7,0% 100,0% Wagenborg Nedlift 91,9% 8,1% 100,0% Koninklijke Niestern Sander 93,4% 6,6% 100,0%

Male Female Total

Total 93,2% 6,8% 100,0%

Percentages in dienst naar geslacht 2011

16

one driver has moved to Reining Warehousing as a Shuttle

driver. Three drivers are now employed as work coordinator

/ driver. They supervise the Hungarian drivers in their work

for large clients, in order to improve the quality of services

offered. As of November, only four Dutch International

drivers were employed by us. We aim to have found a

good solution for them in the first quarter of 2012.

Wagenborg Foxdrill makes use of two agencies for

recruitment and selection, and 2011 saw an increase in

their involvement versus other years. Working with agencies

on a regular basis improves the working relationship, they

are familiar with the Wagenborg Foxdrill organisation and

are aware of what types of employees are sought. In 2011,

a number of persons developed through to a supervisory

role, and two employees were relocated to other positions

in order that they could be retained by the company.

The number of employees at Royal Niestern Sander

decreased in 2011. Twenty-two people left the company

through natural attrition (pension and end of employment

contracts), versus three people newly appointed, including

two apprentices. Niestern Sander wishes to arrive at a

better ratio of permanent and flexible employees in order to

react more adequately to market demand.

At Wagenborg Offshore, there was a shift of activities from

Bautino to Aktau. Bautino is now mainly orientated towards

operations, while Aktau performs auxiliary tasks. This allows

the operations manager to concentrate on his key tasks. Due

to the pontoons and living quarter barges hardly entering

the ports, the Technical Superintendent Barges has been

transferred from the base in Bautino to the working island.

Wagenborg Offshore had inflow from Kazakhstan, Russia,

Ukraine and the Netherlands. Cooperation has been sought

with OMS Shipping in order to continue to employ sufficient

Kazakhstani employees in the future. The contract with Atlas

for crewing three LQBs ended, and it was decided to take

over the crew from Atlas and employ them via CORS.

Inflow, through-flow and outflowThe non-maritime positions at Wagenborg Passenger

Services and Wagenborg Shipping are still all filled from

the regional employment market. In time, Wagenborg

Passenger Services will be faced with problems filling

vacancies for technical officers who are resident on the

islands. This was the reason for purchasing the premises

next to the Holwerd offices. This building is intended for

temporary accommodation for employees who need to

work on Ameland but are not resident there. In order to limit

the expected future shortage of crew members at WPD,

seamen are offered personal development programmes, to

boost their chances of internal through-flow to the positions

of Chief Mate and Engineer. This also makes them more

flexibly deployable, and able to replace a chief mate or

engineer in the event of illness, for example. In terms of

numbers of employees, Wagenborg Passenger Services is

the most constant division at Royal Wagenborg. Growth is

planned for 2012 as a result of the plans for a new arrivals

terminal in Holwerd.

With a view to the continued crisis, we have exercised extra

caution with the inflow of new employees, talking care only

to allow inflow of indirect personnel following outflow of

employees. There was an increase in the number of direct

employees in particular, following the growth of the number

of vessels in the fleet.

In order to remain competitive, Reining was forced to

replace its Dutch international drivers by Hungarian

colleagues, without enforced redundancies being

necessary. Agreements were reached with FNV and CNV

trade unions at the end of 2010. We have agreed to find

alternative work for 23 drivers by 1 November 2011, while

older employees have been offered a transition to pension

scheme. Other forms of work have been sought for all other

employees; at Reining or other Wagenborg companies.

Only one employee has failed to take advantage of this

scheme. Two drivers found other work independently and

17

18 19

against the recession, people are more likely to choose

reliable employers, which was one of the few positive

consequences of the crisis in the shipping trade. Over the

past year, seamen have opted for certainty, reliability and

attention for personal development. These are precisely

the characteristics of our fleet personnel policy for many

years now. The growth in the number of ships required

extra crew, and these additional employees were recruited

in various ways. Some of the crew members became

available from ships purchased, though their numbers were

disappointing due to less purchases than originally planned.

In meeting the required complement of crew members,

the inflow of new employees is derived not only from

employees who have yet to learn the profession but also

from so-called ‘sideways inflow’.

Although they are experienced seamen, they mainly lack

experience with our organisational culture and the type

of cargo transported. The preconditions for sustainable

Twelve vacancies were filled at Wagenborg Shipping

offices and in the ports, well within the set 90-day period,

thanks to an active employment market communications

policy applied in recent years. This policy is characterised

by reinforcement of the Wagenborg brand name in the

employment market, by keeping in contact with the various

vocational secondary schools and higher level colleges and

through maintenance of a large applications database.

The growing presence of Wagenborg in social media

such as Twitter, Facebook, YouTube and LinkedIn played

an important role in influencing the employment market.

Social Media will become even more important for the

Wagenborg reputation on the employment market in the

future, and our belief in this is reflected in the appointment

of an Identity & Branding Manager, who is responsible

for the way in which the Wagenborg brand is presented,

among other things.

There was a very adequate supply of crew members for

the fleet in 2011. With the global economy bracing itself

at sea until their fifth year. The reason for selection at such

an early stage is the focus on the English language. During

these selection days, we also interviewed all students who

had been selected in earlier years. This was the eighth

year in a row that Wagenborg conducted such a selection

process.

By now, the recruitment and selection process for crew

members has been professionalised to such an extent that

the risk of undesirable outflow is limited after a single

sailing. Tailored testing enables us to only recruit new

employees who entirely comply with the Wagenborg

competences, who know how to negotiate, who cooperate

and are solution orientated, i.e. who form the basis for

our “Sign of Solutions” mentality. The continued successful

recruitment and selection of foreign crew members will be

further guaranteed in years to come thanks to own crewing

offices being opened abroad. Wagenborg Saint Petersburg

was established with that in mind, in the past year, and

expectations are that we shall open Wagenborg offices

availability of sufficient crew members are certainly present:

Wagenborg pays on time, keeps to agreements and

operates modern, well-maintained ships. Crew members

with temporary contracts increasingly return to us because

of the good working conditions on board. Think in terms

of WiFi connections, gaming computers, fitness equipment

and good, healthy food. The sailing/leave schedule also

appeals to them, as they have the opportunity to arrange

individual schedules where possible. The administrative

duties for officers on board are also less strenuous than at

other companies, thanks to the automation of declarations

and administration of hours worked, for example. All this

contributes to a positive employer image of Wagenborg.

In order to continue to recruit sufficient crew members

in the longer term too, we have selected trainees from

the Philippine Palompon Institute of Technology (PIT) and

in Vietnam. Before interviewing candidate trainees, the

students first underwent a personality test and an ability test.

They are all first-year students and will not become trainees

20 21worked with German, Rumanian and Polish workers via

temp agencies for many years by now.

WPD makes every effort to maintain a stable complement

of personnel, in order to provide basic services at all

times. Call-up employees are deployed during the holiday

season and at other peak moments. Wagenborg Watertaxi

(WWT) worked with flexible contracts during the first year,

which have since been partially converted into permanent

contracts. This was also due to the fact that we could not

predict how successful the WWT services would prove

to be. We expect to convert more flexible contracts into

permanent employment contracts in the near future. Due

to the project-based nature of the work, Wagenborg

Foxdrill experiences a regular shortage of personnel,

which is solved by using self-employed workers. Twelve

percent of the complete complement of Foxdrill personnel

has a temporary contract, while the rest is in permanent

employment. The following table gives the distribution

in permanent and temporary employment contracts per

division.

in other employment markets in the coming years. An

added advantage of such offices is that they can develop

other activities locally, such as chartering and agency.

Wagenborg Towage has been experiencing crewing

problems due to ageing of the employees combined with

growth of the fleet. The maritime employment market is

extremely scarce in the Northern Netherlands. Introduction

of a new package of employment conditions has helped

reinforce our competitive position, though filling vacancies

at Towage will continue to demand great attention in the

years to come.

Ratio of permanent / flexA healthy ratio of permanent and flexible employment

contracts is essential in order to react to market

developments, and KNS needed to work more efficiently

if it was to remain competitive. Increasing the size of the

group of KNS employees with flexible contracts (temp

employees, subcontractors and self-employed) played an

important role. In the repairs department, where the work is

difficult to estimate beforehand, this flexible shell accounts

for around 40% of the total number of employees available.

If necessary, these flex workers will be hired again, in order

to take advantage of any know-how amassed while working

for us. KNS employs not only Dutch employees but has also

Permanent Temporary Total

Total 2292 916 3208

Numbers employed per contract form 2011

Wagenborg Shipping 721 752 1473 Wagenborg Offshore 405 16 421 Wagenborg Passagiersdiensten 82 21 103 Wagenborg Reining 580 45 625 Wagenborg Nedlift 328 77 405 Koninklijke Niestern Sander 176 5 181

Number of hours in 2011 Temp employees Contracted personnel Total

Koninklijke Niestern Sander 132068 212608 344676 Wagenborg Nedlift 1482 725586 727068 Wagenborg Offshore 148981 886044 1035025 Wagenborg Passagiersdiensten 215 150024 150239 Wagenborg Reining 33348 1088288 1121636 Wagenborg Shipping 11455 2740175 2751630 Koninklijke Wagenborg 327548 5802725 6130273

% hours worked in 2011 Temp employees Contracted personnel Total

Koninklijke Niestern Sander 38,3% 61,7% 100,0% Wagenborg Nedlift 0,2% 99,8% 100,0% Wagenborg Offshore 14,4% 85,6% 100,0% Wagenborg Passagiersdiensten 0,1% 99,9% 100,0% Wagenborg Reining 3,0% 97,0% 100,0% Wagenborg Shipping 0,4% 99,6% 100,0% Koninklijke Wagenborg 5,3% 94,7% 100,0%

Wagenborg Shipping 48,9% 51,1% 100,0%Wagenborg Offshore 96,2% 3,8% 100,0%Wagenborg Passagiersdiensten 79,6% 20,4% 100,0%Wagenborg Reining 92,8% 7,2% 100,0%Wagenborg Nedlift 81,0% 19,0% 100,0%Koninklijke Niestern Sander 97,2% 2,8% 100,0%

Vast Tijdelijk Totaal

Total 71,4% 28,6% 100,0%

Percentages employed per contract form 2011

22 23agenda at Wagenborg. We aim for “lifetime” deployment

of suitable, motivated and vital personnel.

With a view to the ageing employment market, we need

Aging populationThe following table showing age composition per division

gives good insight into the increasing ageing within the

divisions. The sustainable deployability theme is high on the

Numbers employed per age group 2011

Percentages employed per age group 2011

Wagenborg Shipping 148 420 423 327 149 6 1473 Wagenborg Offshore 57 133 113 91 27 0 421 Wagenborg Passagiersdiensten 7 12 26 37 20 1 103 Wagenborg Reining 15 133 214 181 81 1 625 Wagenborg Nedlift 33 102 112 87 67 4 405 Koninklijke Niestern Sander 10 28 44 50 49 0 181

Wagenborg Shipping 10,0% 28,5% 28,7% 22,2% 10,1% 0,4% 100,0% Wagenborg Offshore 13,5% 31,6% 26,8% 21,6% 6,4% 0,0% 100,0% Wagenborg Passagiersdiensten 6,8% 11,7% 25,2% 35,9% 19,4% 1,0% 100,0% Wagenborg Reining 2,4% 21,3% 34,2% 29,0% 13,0% 0,2% 100,0% Wagenborg Nedlift 8,1% 25,2% 27,7% 21,5% 16,5% 1,0% 100,0% Koninklijke Niestern Sander 5,5% 15,5% 24,3% 27,6% 27,1% 0,0% 100,0%

<25 years 25-34 years 35-44 years 45-54 years 55-64 years >65 years TOTAL

<25 years 25-34 years 35-44 years 45-54 years 55-64 years >65 years TOTAL

Total 270 828 932 773 393 12 3208

Total 8,4% 25,8% 29,1% 24,1% 12,3% 0,4% 100,0%

programme, Wagenborg Nedlift also has three additional

mechanical engineering trainees, one of whom has since

been taken into full-time employment.

KNS aims to keep employees in work productively until

pensionable age. In order to limit the ageing process,

retiring employees are preferably replaced by trainees,

who are given a permanent employment contract after 22

months in employment and gaining their diploma.

Besides ageing, another employment market development

is that of internationalisation. The same therefore applies

to our continued extension of employment market relations

abroad. An effective policy covering inflow, through-flow

and outflow of personnel is essential if we are to keep

sufficient personnel available in the future.

to focus even more on recruiting the scarce talent, which

is the result of less young employees and well-trained

professionals entering the Dutch employment market in the

years ahead of us. It is therefore essential that we establish

cooperation with vocational educational institutes.

Our cranes division, for example, is experiencing more

and more difficulty in finding young crane drivers, one of

the reasons being the declining number of school leavers

nationally. Furthermore, this scarce target group can choose

between many different professions nowadays. We have

therefore started training our own talents, who are allocated

a mentor to prepare them for the work.

We initiated a Corporate Trainee programme in 2010

in order to ensure sufficient management capacity in

the longer term. These trainees are flexibly deployable

employees (also abroad) and have the potential to hold

down key positions at Wagenborg in due time. They work

through four six-month modules over a two-year period,

during which they carry out a specific assignment for a

division, alongside their regular work. Each trainee is

introduced to at least three different divisions. Besides their

work, trainees follow an off the job programme aimed at

personal development. This programme comprises four

two-day meetings which deal with various subjects in the

field of “Leading myself” and “Influencing others”, along

with personal coaching and intervision (action learning)

meetings. At the end of the training programme, the trainees

are employed at one of the divisions. Alongside this trainee

24

dEPLOYABILITY

25

4

26 27in keeping with the required “Sign of Solutions” mentality.

For this reason, we have implemented Competence

Management (CM) at Wagenborg Shipping, the purpose

of which is to concentrate on personal development which

is in keeping with the identity required by Wagenborg. A

competence couples concrete behaviour to a job, so that

everyone is aware of the behaviour required by that job.

While job descriptions determine “what you do” and “why

you do so”, competences are all about how you do your

job. All jobs at Wagenborg require the key competences

of Solution Led, Entrepreneurship and Cooperation, which

are the essence of the Wagenborg identity. On top of

these three key competences, each job has four more

competences. These seven competences form the basis from

which to pay attention to the strengths and development

points of each employee. Following implementation in

the offices, competence management has now been

implemented on board the ships. The first step was to revise

the job descriptions, and then to determine the competences

per job during workshops. The formulated competence

profiles will be used in 2012 to determine where extra

In order to deploy the available personnel in

a sustainable manner, we pay a great deal of

attention to functioning & assessment and to

personal development.

In doing so, we try to deploy each employee to

the best of their abilities. Education and training

are tailored to their talents where possible,

in order that they may be further developed.

development is based on internal through-flow,

in order to achieve a new “championship” during

their career, and this requires ambitious and vital

employees. This section discusses what we have

done in the past year to improve deployability of

employees.

Functioning and assessmentIn order to guarantee deployability at all times, it is

essential that we are aware of the state of each employee’s

deployability. Assessment interviews between employees

and their superiors are crucial, as their functioning must be

training is required. During recruitment and selection

assessment, we can now specifically judge whether

candidates have the required competences.

CM is also applied at Wagenborg Foxdrill. The assessment

system formerly used at Wagenborg Passenger Services

did not suffice. We wish to use a two-year cycle, in which

the assessments are carried out for the Ameland-Holwerd

service in year 1, followed by the Schiermonnikoog-

Lauwersoog service a year later. All interviews are in

theory conducted by management, though an extra person

can attend on request. CM is scheduled for gradual

implementation over the course of 2012.

Wagenborg Kazakhstan has developed a new evaluation

form specifically for each job, which includes the so-called

“role expectations”. This form indicates what is expected

from the employees in the coming year. This is then used

as input for the future. At Wagenborg Reining, the annual

interviews are held in the fourth quarter of the year.

Implementation of CM has been delayed until the end of

2012, due to the focus on cost control.

28

the principles of the Investors in People certificate (IiP). IiP

is a quality hallmark, which helps attune ambitions and

targets of the organisation and employees and which

has been successfully applied at Wagenborg Shipping

for nearly 10 years by now. With a view to the areas

of attention derived from the 2010 audit, there was

specific attention for whether the administration and wage

administration departments met the IiP standard this year.

These departments have recently undergone a change of

management, which, in the auditor’s opinion, has had a

positive influence on deployability of the employees.

At Niestern Sander, functioning and assessment interviews

are held in the offices but not in the production department.

though the aim is to pay more attention to this in the future.

One or more functioning and assessment interviews are

conducted with employees at all divisions, each year.

Wagenborg Nedlift is the exception, where interviews are

conducted with the direct personnel once every two years.

Investor in People

The assessment system at Wagenborg Shipping is

evaluated annually by an external auditor according to

29

Education and developmentEducation and training is provided in all divisions, so that

employees comply with national and international quality

requirements such as ISM, ISO and VCA. The policy also

offers space for personal development, in keeping with the

organisation targets. This is all paid for by Wagenborg, in

principle.

Educational opportunities were kept to a minimum

at Wagenborg Reining last year, because of the

reorganisation process. In order to increase deployment

within Reining however, one of the most important points

for improvement was the mutual communication, which

was reflected in the poor gearing between work carried

out and the Reining targets. We therefore wish to organise

internal communication according to the principles of the

IiP hallmark. In practical terms, this means that Reining

must initiate competence management and implement

the appropriate assessment system. Evaluations in 2012

and 2013 will determine whether IiP will be further

The following aspects were notable, in a positive sense:

• ImplementationofCompetenceManagement;

• Establishmentofthecorporatetraineeship;

• Communicationbetweentheofficesandshipswasvery

positively assessed.

• Theintroductionprogrammefornewcrewmembers,

focussing on safety.

The following issues required improvement:

• Measurementofthereturnoninvestmentineducation

and development;

• Thepossibilityofdiscussionofmanagementfunctioning

during assessment interviews;

• Provisionoffeedbackforbehaviourdisplayedduring

execution of a job;

• Structuralevaluationofintroductionandfamiliarisation

programmes for the office organisation.

30move up to higher ranks, as the opportunities for career

advancement are crucial if we are to attract crew members

in Kazakhstan. This is also the reason why contracts have

not been prolonged with CRS (Caspian Radio Services).

The radio officers can be replaced by second mates,

which is better for the deployability of crew members

in the longer term, because radio officers can only be

deployed for a single task. Second mates are broadly

deployable on board, allowing for more efficient allocation

of duties. Unlike a radio officer, a second mate can grow

through to the rank of first mate, and in due time even

to become a captain. The introduction of the second

mate on board the living quarter barges (LQBs) offers yet

another important advantage in terms of extending career

opportunities. The creation of the second mate job on LQBs

has considerably improved the possibilities for moving up.

In 2011, Wagenborg Offshore appointed a Director of

business development and a Chief accountant onshore. The

position of crew coordinator was also introduced at the

HR department, freeing the Senior HR coordinator and HR

Manager to focus more on preparation and implementation

of policy. During construction of the Vivaldi LQB, the Barge

Master, Barge Engineer and Electrician visited the shipyard

in the Netherlands to assist in the construction process.

At Wagenborg Passenger Services, there was only a

implemented. Wagenborg Offshore aims to have as many

Kazakhstani employees as possible develop through to

the higher ranks. We have set up the Caspian Maritime

Training Centre (CMTC) in order to guarantee good levels

of deployability in the longer term. The CMTC is to play an

important role in training maritime personnel for our ships in

the Caspian Sea.

Through-flowThe Wagenborg personnel policy is aimed at keeping

employees deployable as long as possible, in order to

retain as much as possible of the know-how and experience

they have amassed. We wish to achieve this by offering

employees the opportunity to experience one or more

championships during their career. An example of such

a “championship” is the through-flow to a different job

or role within the company. Assessment has begun of the

career paths throughout the divisions, in order to increase

their opportunities of flowing through. The positions which

employees may hold within the other divisions can then be

charted. There are plans to work this out in a more concrete

form in 2012.

At Wagenborg Nedlift, six employees have moved on

internally to a different job. Each year, we try to allow

as many Kazakhstani crew members as possible to

31This allowed employees be deployed even more effectively

for their individual strengths.

direct and indirect personnelIn order to keep good insight into how efficiently our

employees are deployed, we make a distinction between

indirect and direct personnel. Direct personnel concerns

those jobs directly involved in execution of our logistics

solutions, such as crew members, drivers, crane drivers,

fork lift truck drivers and many others. By indirect personnel,

we refer to those jobs involved, for example, in gaining

orders, carrying out maintenance, administration, network

management, monitoring of quality levels, etc.

temporary flow-through situation during holidays and

periods of illness. The decision was taken to flatten the

organisation at Reining Warehousing in order to better

comply with customer demand. The Working Council has

reacted positively to the proposals to replace the Foremen

and Team leader organisational layers by a Logistics Team

leader. This will render the organisation more flexible and

will shorten the lines of communication, making us more

efficient and effective. The employees in question have all

undergone a development assessment, resulting in four

employees being appointed Logistics Team leader and

three other employees being offered other suitable positions

along with a development course.

Various activities have been more efficiently allocated at the

Fleet Management department of Wagenborg Shipping.

direct Indirect Total

Total 2551 657 3208

direct and indirect personnel per division 2011

Wagenborg Shipping 1214 259 1473 Wagenborg Offshore 321 100 421 Wagenborg Passagiersdiensten 62 41 103 Wagenborg Reining 489 136 625 Wagenborg Nedlift 313 92 405 Koninklijke Niestern Sander 152 29 181

direct Indirect Total

Total 79,5% 20,5% 100,0%

Percentage of direct and indirect per division 2011

Wagenborg Shipping 82,4% 17,6% 100,0% Wagenborg Offshore 76,2% 23,8% 100,0% Wagenborg Passagiersdiensten 60,2% 39,8% 100,0% Wagenborg Reining 78,2% 21,8% 100,0% Wagenborg Nedlift 77,3% 22,7% 100,0% Koninklijke Niestern Sander 84,0% 16,0% 100,0%

32

533MOTIVATION

34 35important matters which must be taken into account when

on the base or on board a ship.

Before actually going aboard, new crew members

receive an introduction specifically for their rank, at

the offices onshore. Once on board, they work through

the ‘familiarisation’ programme. From 2011 on, new

employees in senior positions on board are brought ashore

for two days, and familiarised with the technical and

commercial aspects which are important in order to carry

out their jobs. An introduction day was also organised for

the first time for office personnel at Wagenborg Shipping

this year.

Leadership development

Managers and their leadership styles are important when

stimulating involvement and motivation of employees.

The Management Development policy, which initiated

a development programme for managers (the so-called

Master classes) a number of years ago, was once again the

guiding force behind development of managers in 2011.

All participants had their annual coaching and development

interview in the past year, which is an opportunity to discuss

personal development within their role at Wagenborg.

Other initiatives in this field, such as a management

Well-motivated employees are important if a

company is to succeed. The motivation to work

at something increases when involvement is

stimulated, and motivation is an important

precondition for successful enterprise, solution

orientation and cooperation

IntroductionBesides the corporate introduction programme, various

divisions have their own introduction or familiarisation

programme. New employees at Wagenborg Foxdrill are

trained by the HSE supervisor during their first month,

the idea being that they become familiar with the way of

working within the company, while also realising safety

awareness. All employees joining Wagenborg Kazakhstan

must at least have followed the Wagenborg Offshore

Introduction course. This introduction describes a number of

“Not only fun but also m

otivational, inspiring a

nd getting

the Wagenborg feeling as

a group...!”

“I found out all kinds of things about Wagenborg I wouldn’t otherwise know...”

“Meeting the colleagues from the various departments was very

useful for me...”

“By the end of the day, it felt like: “We’re the Wagenborg team and here we come…!”

learning process for a 5th group and an alumni day for

all Master Class participants, have been delayed because

of the current economic situation. The idea is to map out

the career options of employees more effectively over the

coming years, based on strategic personnel planning.

There is also attention for the motivating role of managers

during the corporate trainee programme. The trainees

follow a programme dealing with subjects such as “Leading

myself” and “Influencing others”. On board the fleet,

officers of the various nationalities are provided with

training in “People Management”. We still hope to offer

talented crew members participation in the Wagenborg

Management Development programme in the future.

Consultation and communicationInformation on developments is discussed in all divisions

during various forms of consultation, such as works council

meetings, toolbox meetings, management meetings,

Operations Team meetings and departmental meetings.

Effective consultation is good for motivation, and Officers’

meetings at Wagenborg Shipping certainly reinforce both

motivation and involvement. During these two-day sessions,

higher ranking crew members are free to provide input, in

an open and relaxed atmosphere. The meetings are greatly

appreciated and can always count on good attendance.

More and more forms of supra-divisional consultations are

also being initiated, including, for example, those initiated

by HR, Health & Safety and absenteeism coordinators,

salary administration, MD control group, the communication

36

electro and Small-scale trade shipping had minimum

percentage increases; the annual pricing compensation was

continued within the employment terms schemes specific to

Wagenborg.

Divisions subject to written overtime, such as Wagenborg

Reining, Wagenborg Nedlift, Wagenborg Stevedoring,

Towage and Niestern Sander took a critical look at

overtime and proposals were made for limitation. The

balance between work and private life remains important

for employees. There is a clear increase in the number of

requests for care leave or parental leave by male employees

versus previous years. Within the scope of a personnel

policy aimed at life phase planning, the extra free days

for crew above a certain age have been discontinued.

This was due to these arrangements being against the age

discrimination law. The principle at Wagenborg is that, on

top of personal attention, other important motivation factors

for employees to enter and/or remain in employment at

project group and the web editors. Finally, there are

Wagenborg sales meetings, at which commercial matters

are discussed at the supra-divisional level within WPL.

Newsletters are distributed in order to keep employees up

to date with developments in the organisation; Wagenborg

Passenger Services has the “Week info”, while Wagenborg

Foxdrill and Wagenborg Shipping have their own intranet.

An intranet will be developed for Nedlift in 2012.

Terms of EmploymentA wide range of different terms of employment applies

at Royal Wagenborg; from collective labour agreements

to employment terms schemes, and from expat policy to

lease schemes. Modifications were once again made to

the package of employment terms in 2011, which reflect

the developments in the market and society. The trend of

curbing wage development has been continued. Branch

agreements for Professional goods transport, Metal-

37

We regularly compare our own arrangements with the

employment market situation. The gearing of working hours

and private time (leave) for crew members is a distinctive

term of employment, for example. This is why we believe in

the importance of tailoring sailing/leave schedules. At the

end of 2011, employees of Wagenborg Shipping, Foxdrill,

Reining and KNS with a fixed working location received

a “Travel expenses tax benefit” arrangement proposal.

Additions and modifications to the company social

arrangements are always agreed in consultation with and

following approval by the works council.

Wagenborg, are facilities such as transport, work clothing,

hotels and speedy retrieval in case of calamities.

Besides the developments described above, new terms

of employment have been formulated for Wagenborg

Towage in consultation with the works council. These terms

are more in keeping with the new forms of working within

Towage. There is now less of an administrative burden for

wage processing, and a more competitive approach to

the ever more difficult employment market. The companies

which adhere to a branch-based collective labour

agreement also participate in the pension schemes for those

branches. Furthermore, Wagenborg has an own company

pension insurance scheme for the other companies in the

Netherlands, based on a final wage scheme.

Wagenborg always aims at correct compliance with

the obligations of such schemes, and stays abreast of

any developments in employment terms at all times.

38 duration of employmentMotivated and involved employees contribute to the desired

sustainable employment relationship and are not likely

to switch employers. The tables below are proof that our

policy is aimed at long-term employment relationships:

Numbers according to years in employment 2011

Wagenborg Shipping 916 273 95 122 43 17 7 1473 Wagenborg Offshore 187 123 74 26 9 1 1 421 Wagenborg Passagiersdiensten 8 27 20 23 16 9 0 103 Wagenborg Reining 180 335 63 36 9 2 0 625 Wagenborg Nedlift 42 141 59 78 54 27 4 405 Koninklijke Niestern Sander 5 54 5 46 39 26 6 181

< 1 years 2-5 years 6-10 years 11-20 years 21-30 years 31-40 years > 40 years TOTAL

Total 1338 953 316 331 170 82 18 3208

Percentages according to years in employment 2011

Wagenborg Shipping 62,2% 18,5% 6,4% 8,3% 2,9% 1,2% 0,5% 100,0% Wagenborg Offshore 44,4% 29,2% 17,6% 6,2% 2,1% 0,2% 0,2% 100,0% Wagenborg Passagiersdiensten 7,8% 26,2% 19,4% 22,3% 15,5% 8,7% 0,0% 100,0% Wagenborg Reining 28,8% 53,6% 10,1% 5,8% 1,4% 0,3% 0,0% 100,0% Wagenborg Nedlift 10,4% 34,8% 14,6% 19,3% 13,3% 6,7% 1,0% 100,0% Koninklijke Niestern Sander 2,8% 29,8% 2,8% 25,4% 21,5% 14,4% 3,3% 100,0%

< 1 years 2-5 years 6-10 years 11-20 years 21-30 years 31-40 years > 40 years TOTAL

Total 41,7% 29,7% 9,9% 10,3% 5,3% 2,6% 0,6% 100,0%

39

40 41

6

VITALITY

42 43SafetyPeople are what matter at Royal Wagenborg. With the

assistance of our ships, cranes, transport units and other

equipment, it is they who provide solutions for our clients,

often under changeable and challenging conditions.

We therefore ensure good and safe working conditions,

making sure our people have the best equipment at their

disposal and handling employment risks in a sound manner

during all our activities. We encourage safety awareness

in all layers of the organisation, with the aim of getting all

employees back home in good health after their working

day or their time on board.

Our quality and safety policy is assessed annually

according to a number of quality standards. Wagenborg is

certified for ISO 9001, 14001, VCA ** quality systems,

is an authorised member of VVT, Irata, HACCP (food

safety), ISM,OHSAS 18001, Investors in People, ISPS,

GMP, AEO fodder.

We have a central Health & Safety coordinator in

order to monitor working conditions effectively, who

reports on the situation at Wagenborg and makes

proposals for improvement. In turn, the Health &

Safety coordinator reports to the Central Works

We want our employees to continue to work for

us as healthily as possible. Vitality is important

if they are to remain active until pension age,

and the Wagenborg policy in the field of safety,

health and welfare is aimed at protecting that

vitality. This section describes how this policy

contributes to preventing risks which may cause

absenteeism through illness wherever possible,

but also how we ensure speedy return to work in

such cases.

Absenteeism management has always been an issue: here

is the KNS health service scheme dated 10 March 1928.

Council and organises consultation between the Health &

Safety officers at Wagenborg. Such consultations allow

for sharing of experiences, exchange of knowledge and

presentation of the latest developments in the field of health

and safety. All those involved ensure that they stay up to

date with Health & Safety rules and guidelines by reading

professional literature, participating in seminars and via

newsletters. All companies have drawn up a Risk Inventory

& Evaluation (RI&E) in order to estimate the risks. This RI&E

was conducted again in 2011 at Wagenborg Nedlift and

Wagenborg Passenger Services. We also pay attention

to risks of excessive physical duress due to the climate,

noise, vibrations, etc., which is limited by offering personal

protection equipment (PPE) to employees, for example.

Winter and summer work clothing is offered by Wagenborg

Offshore and on board Wagenborg Shipping vessels.

Winters in Scandinavia, North America, Siberia and

Kazakhstan are extreme, with temperatures sometimes

dropping to -60 degrees. The combination of these

extremely low temperatures and the long distances which

must be travelled, greatly affects the way in which work is

carried out in such cases. All vessels and vehicles used by

our employees have extensive safety equipment on board,

including excellent communications equipment and extra

clothing. These are the basic provisions with which to

guarantee employee vitality.

A policy is also in place to prevent psychosocial issues

such as working pressure, bullying, sexual intimidation

and aggression. All employees must always feel confident

and safe in their working environment. Should this not be

the case, each company has its own confidential advisor.

Plenty of attention is paid to physical aspects such as

lifting, pushing, standing, monitor work and repetitive

movements, by means of information, workplace inspections

and modifications where necessary. KNS works hard

at encouraging employees to adopt healthy working

positions during and after work. All employees therefore

automatically follow the basic Ergonomics course via STEP

(a foundation for Ergonomic Prevention). The course leader

visits the shipyard regularly in order to advise employees

at their workplace and to limit the risks. Overhead welding

is avoided wherever possible, and prevention is taken

into account on the purchase of equipment and the new

construction of offices and ships.

44 45intensive training, and four of them decided to continue with

these sports after the 16-week period. WPD has offered

opportunities for company fitness for many years, including

half-price sports subscriptions for partners of employees.

There is a gym area on board the Wagenborg Shipping

fleet and on board LQBs.

Wagenborg sponsors participation in sports events,

for example the Groningen 4-mile run, which has been

sponsored by Wagenborg Reining for many years.

Three trucks with mega-trailers were deployed as service

trucks to transport the runners’ baggage from the start in

Haren to the finish in Groningen. A total of 33 employees

of Wagenborg Nedlift, Shipping and Reining took part.

Three Wagenborg Shipping teams participated in the Univé

Stadsloop Appingedam, and these company teams were

joined by colleagues running individually or as families.

Foxdrill organised its fifth annual football tournament in

May, in which a team of Wagenborg Nedlift and Foxdrill

employees participated but which was also attended by

Wagenborg clients.

HealthExaminations and preventative medical testing is offered

at all companies in order to make employees aware of

their health, and the divisions offer a variety of measures to

promote good health.

A trainer has been appointed at Wagenborg Shipping, to

train the on-board cooks in the composition and preparation

of (more) healthy food, the aim being to boost the health

and thereby deployability of the crew in the longer term.

The rules for the consumption of alcohol during free time on

board are now also more strict, with spirits no longer being

tolerated. This new rule was established in consultation with

the works council.

Wagenborg Offshore has a zero tolerance policy for drugs

and alcohol. At Wagenborg Reining, two HR employees

took part in a “Recognition of Addiction” training course.

Besides attention for healthier eating and drinking,

employees are regularly stimulated to take more exercise.

KNS employees have voluntarily participated in organised

sports school activities, the aim being to achieve good

basic fitness. Eight employees undertook 16 weeks of

AccidentsAll locations have their own company emergency services

organisation in the event of an emergency. There are a

total of 77 emergency services employees on shore, most

of whom have also received first aid and AED training. At

Wagenborg Passenger Services, all harbour and office

staff have a first aid diploma and fire services certificate.

Medical care on board Wagenborg Shipping and

Wagenborg Offshore is the responsibility of the first mate.

All other crew members have general emergency know-

how. All working locations have company emergency

plans, whereby those of Reining, Stevedoring and Shipping

were revised in 2011. Health & Safety information and

instructions are provided during introduction programmes

and toolbox meetings in order to prevent accidents.

WPD offers all employees who spend a great deal of

time behind a PC monitor the opportunity to enjoy weekly

pressure point therapy. The high attendance was proof of

the great popularity of this therapy. In order to promote

vitality, Wagenborg Nedlift has introduced a time-for-time

leave scheme.

4746 The Company care policy is an employer instrument

which forms the basis for re-integration of incapacitated

employees. By combining the strengths of the two policies,

maximum efficiency of execution can be reached at a very

competitive premium for the employees.

We expect the relationships between health care insurers

to become very dynamic in the near future. Negotiations

with the insurers will not be dominated by premiums and

discounts alone, but especially also by the access to and

availability of medical care and the speed with which it can

be provided. As far as Royal Wagenborg is concerned,

the aim of negotiations is to gain freedom in the choice

of hospitals and specialists, and a lack of waiting lists. In

2011, the role played by the company doctor has been

evaluated and assessed according to new insights into

incapacitation.

In the future, his or her role will require increasing support

from specialist medical expertise and analysis in order to

prevent incapacitation and improve chances of successful

reintegration. The cooperation with Cavary Clinics is a fine

example of deployment of specialist expertise for prevention

AbsenteeismRoyal Wagenborg applies an active policy for absenteeism

management and prevention of incapacitation for

employment.

This policy is based on the following principles:

• NouseoftheWIA(CapacityforLabour)scheme;

• MaximumdeploymentoftheUWVopportunities;

• Healthcareinsurerparticipatesfinanciallyinthere-

integration process;

• Nowaitingtimesforoperationsorotherhealthcare;

• Proactivesteeringofabsenteeismandincapacityfor

employment;

• Appointmentofinternalabsenteeismcoordinatorsto

supervise the absenteeism and incapacitation process.

This policy is continuously improved and refined in keeping

with legislative amendments, developing insights and

active steering. Health & Safety has been given a back

seat at Wagenborg Shipping, Reining and Nedlift, and an

independent company doctor appointed.

The Wagenborg Basic care policy was introduced in 2008,

together with the Wagenborg Company care policy.

48 49branch. Managers have been given training in conducting

absenteeism interviews in order to ensure effective and

speedy reintegration.

Local legislation in Kazakhstan arranges for 10% payment

of wage for sick employees, which has resulted in relatively

little short-term absenteeism at Wagenborg Offshore in

Kazakhstan.

At Reining, the target was to achieve a 4.5% absenteeism

rate, which was unfortunately not achieved. The

absenteeism rate in the Netherlands was 5.1%, which

represents a 1.2% increase versus 2010. The frequency

of sick leave in 2011 was 1.07 and the average duration

was 12.8 days. In 2011, 149 so-called waiting days were

deducted from employees’ salaries in total.

WelfarePleasure at work is good for vitality. Working for

Wagenborg needs to be pleasurable. We believe that

working in a good atmosphere promotes motivation and

involvement and therefore also the results. We therefore

support various initiatives to increase mutual involvement

outside of regular working hours. Each company has

a number of personnel associations who organise all

and reintegration purposes. In the years to come, we

shall make even more efforts to extend the network of

specialists in the field of speedy and successful reintegration

and financing of the costs, by reaching good collective

agreements with health insurers.

Legend% Absenteeism, ratio between the total number of days sick and

the days workedAD Average duration of all cases of absenteeismAF Average frequency of sick leave per employee

Absenteeism figures at Wagenborg Nedlift are more or

less comparable with those of last year, and are lower

than the average absenteeism figures in the road transport

% Ad AF

Total 2,4% 14,0 0,53

Absenteeism figures per division 2011

Wagenborg Shipping 1,1% 3,8 0,22 Wagenborg Offshore 1,2% 12,5 0,26 Wagenborg Passagiersdiensten 4,1% 11,0 0,97 Wagenborg Reining 3,9% 12,9 0,78 Wagenborg Nedlift 4,4% 11,5 0,68 Koninklijke Niestern Sander 7,5% 8,6 2,31

holidays celebrated together include Independence Day

and the so-called Nauryz (Kazakhstan New Year party).

The personnel association of Wagenborg Shipping has

organised numerous activities over the past year, which

were all very popular. For example, 130 colleagues went to

the ‘Petticoat’ musical together.

kinds of activities, many of which are also open to family

members. Wagenborg stimulates and supports these clubs

on the basis of the philosophy that such activities reinforce

employee relationships.

In the Kazakhstan culture, birthdays are celebrated

extensively with colleagues, with everyone coming together

and enjoying all kinds of delicacies. All those present also

give a short speech for the birthday boy or girl. National

50 51

SOCIAL INVOLVEMENT

7

52 53in May. Lean & Green is a programme which stimulates

companies to grow to a higher level of sustainability by

taking measures which not only result in cost savings but

are also good for the environment. In gaining this award,

Reining proves to have been actively engaged in rendering

the logistics process more sustainable. This was achieved

through formulation of a plan containing concrete targets to

reduce CO2 emissions by at least 20%. Reining must meet

the targets over a five year period, though the company

has already been investing in sustainability for the last five

years. A number of improvements have been made in this

period, in terms of both technology and behaviour, which

have resulted in approximately 35% reduction in CO2

emissions. Reining expects to realise further improvements,

by improving the loading percentage and further

developing intermodal solutions.

Reining is also investing in trucks with a greater transport

capacity.

A contract was signed in September 2011 with regard

to the supply of passenger and company vehicles to all

Wagenborg companies. The contract includes agreements

on a fleet scan, with the intention of determining possibilities

for lower CO2 emissions. Wagenborg Nedlift has already

begun implementation of such a scan.

Wagenborg not only has attention for its

employees but also has a strong sense of social

involvement. We carry out activities worldwide

which are in close contact with the surroundings:

sailing the world’s seas and transporting goods

through many countries. We make every effort

to ensure that our work has as little impact as

possible on the environment, in order that future

generations can also experience and utilise the

world in all its prospectives.

This section discusses how the various companies

contribute to our sense of social involvement.

Less fuel, less CO2 emissionsWagenborg Shipping consistently invests in more

environment-friendly ships with very low fuel consumption.

Wagenborg Reining has installed the Shell Fuel Save

(SFS) system in all trucks. This system monitors the driving

behaviour of the drivers, with the aim of reducing fuel

consumption and therefore also the CO2 emissions. By

making drivers more aware of their driving style, we

also expect to save maintenance and damage costs.

Wagenborg Reining received the Lean & Green Award

Wagenborg Store supported projects in Malawi.

The Transport4Transport foundation is a Dutch foundation

which aims at improvement of transport in Malawi. This

mainly concerns improvement of transport to hospitals in

Malawi by providing locally produced bike ambulances.

Experiments are also underway with hand carts for a

municipal refuse collection service and a ‘mobile store’ is

under development.

These projects are financed using microloans. Partly due

to the proceeds from the Royal Wagenborg internet store,

along with contributions from the Transport4Transport

Regional involvementThe various companies are increasing their regional

involvement by supporting local initiatives and honouring a

variety of community requests. When purchasing products

and/or services, there is explicit preference for suppliers

within the regions of the various branches.

The same applies to support of projects in the field of

culture, sport and education. During the past year,

Wagenborg Passenger Services once again supported

various sport and cultural activities on and around the

Wadden Islands.

54 55foundation, many thousands of people in approximately

1500 villages now have their own bike ambulance services.

A local shipyard was also assisted by providing shipyard

personnel with working clothing. A delegation including a

Wagenborg employee, visited the Mpwepwe Boatyard. The

experiences there are to lead to research into possibilities

of stimulating shipbuilding and shipping around Lake

Malawi, through application of our expertise. The next visit

is planned for 2012.

Besides the proceeds from the Wagenborg Store and

gifts and donations from private parties and companies,

the personnel associations also make regular direct

contributions.

Wagenborg Kazakhstan made a number of donations in

2011, to a local post office for example, to repair the roof

which had been seriously damaged in a severe storm. We

have also provided a number of poor families with gifts

at Christmas time. A recurring subject is the contribution

made by Wagenborg to Nauryz, the Kazakhstan new year

party, for which a Yurta (traditional tent) is erected and the

catering provided. This is greatly appreciated by the local

residents.

56and vital in the future, it is important that we have

conditions in place to facilitate this. The board, HR but

especially also the employees must all be involved in

determining these conditions in the years ahead of us.

Think in terms of conditions such as “support”, “challenge”,

“appreciation” and “attention for talent”. This combination

will contribute to the sustainable motivation of employees,

in order that they show passion in their work, that they feel

involved in Wagenborg and that they continuously develop.

We believe in “lifetime employment” in which an employee

looks forward to working for Wagenborg for the rest of his/

her working life, enjoys doing so, and upon pensioning

looks back on a valuable period in his/her life.

This is all based on the concept that we all Profit the most

if we can conduct our work with Pleasure and Passion.

Bert Buzeman

Personnel & Organisation Manager

Royal Wagenborg

Wagenborg is faced with dejuvenation and ageing in

a double sense. The ageing population will result in a

considerable loss of know-how and experience in the

coming years, while it simultaneously becomes more difficult

to recruit young and well-trained personnel, due to the more

limited supply. This is inevitable, despite the crisis leading to

a growing number of job-seekers for the jobs available, at

present.

The labour shortage requires sustainably deployable

employees. This Social Annual Report has shown

Wagenborg to have placed this theme very high on the

HR agenda. One of the main ‘People Issues’ is the lifetime

deployability of available, motivated and vital personnel.

Wagenborg and its employees are jointly responsible for

this sustainable deployability; we need to work together at

a sustainable relationship, the aim being that everyone can

achieve at least three championships during their career.

A championship can be promotion, a new position or role

within the division, or a job within a different division. This

is achieved by recognising your strengths and weaknesses,

maintaining your professional know-how, continuing to

learn, showing initiatives and being resilient. By being

sustainably deployable, we are “fit for the future”.

In order to actually keep employees available, motivated

AFTERWORd

Wagenborg Shipping B.V. Marktstraat 10 P.O. Box 149930 AA DelfzijlThe Netherlands www.wagenborg.com