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Global shipbuilding industry faces choppy waters

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10 August, 2009Unions call for secure jobs as a central strategy to securing the future of the shipbuilding industry beyond the current crisis.

GLOBAL : The OECD Council Working Party on Shipbuilding (WP6) met in Paris  on July 9-10 to discuss the deepening impact of the global financial crisis on the world's shipbuilding industry. Ambassador Harald Neple (Norway), Chairmen of the OECD Council Working Party on Shipbuilding in his statement drew attention to the fact that in virtually all economies, the unprecedented financial crisis has led to a sharp contraction in investment, economic activity, employment and international trade. While initially shipbuilding was to some degree insulated from these effects because of strong order books, in the last six months new orders have fallen by over 90 per cent and cancellations are increasing.

In a joint submission to the WP6 both the International Metalworkers' Federation and European Metalworkers' Federation highlighted the passion among the trade unions to ensure that the industry has a bright future despite the current problems. "During previous crises the industry was written off many times but unions acted as guardians for the industry and fought for its survival. In the current situation it is vital to secure jobs in the industry, thereby securing the industry itself, and to ensure that the industry continues product innovation and investments in skills and training," said Rob Johnston, IMF Director for Shipbuilding.

"A central feature of stabilizing the industry is the need for the OECD to  conclude an agreement on pricing and subsidies that leads to a level playing field creating the right framework for a recovery of the global shipbuilding sector," he argued.

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http://www.oecd.org/department/0,3355,en_2649_34211_1_1_1_1_1,00.html