WILLEMSTAD – The Curaçaoan government has considered the possibility of Damen Shiprepair leaving Curaçao. The Ministry of Economic Development (MEO) is said to have made preparations for a potential exit of the company.

MEO Minister Ruisandro Cijntje allegedly requested the Ministry of Finance to make over four million guilders available should a crisis situation arise where Damen employees’ wages would need to be paid in the event of a relaunch.

While Damen Shiprepair Curaçao is still active on the island, it has faced challenges in the past. The company operated at a loss in recent years and had to prove its viability in 2023 without external assistance. This raised concerns about its presence on the island.

There were also concerns about the need for labor flexibility and adjustments to working conditions. Although there was a tentative agreement with the PWFC union, it was rejected by the staff. Additionally, the company struggled with outdated equipment and reduced production capacity.

Earlier this year, Damen had to pay 4.2 million guilders in back taxes. An arrangement was made where Damen received a thirty percent discount on a total amount of 10.2 million guilders. The proposal to allocate this amount for potential crisis situations came from MEO, but according to regulations, all tax revenues must go to the general treasury.

The Ministry of Finance considered the MEO’s request to continue paying Damen employees in the event of a relaunch, but only if there was a solid rescue plan in place. Damen has since settled its tax debt.

Bron: Curacao Chronicle