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Royal Dutch Shell plc: Employees Speak Up

Published By: Myrna Salomon on January 6, 2017 10:52 am EST

Oil & gas companies have been in a celebratory sentiment since OPEC meeting in Vienna last year; the results of the meeting led to a wave of optimism in the global energy market. Energy majors around the world are now looking to increase their exploration and production (E&P) activities.

The past couple of years have dented financial profiles of oil & gas companies, given the low crude environment and economic slowdown. However, the latest rally in the oil prices has come as a golden opportunity for energy giants to mitigate their losses.

Several employees at the Big Oil were laid off between 2014-2016 in the wake of low commodity prices. Although the companies, themselves being in a tough spot, cannot be blamed for the headcount reduction. A similar update has come from the Anglo-Dutch multinational Royal Dutch Shell plc (ADR) (NYSE:RDS.A).

According to CBC News, the integrated oil & gas major has been accused by the Canadian authorities for having denied the employees a small break off to vote in the federal election. The matter comes under the act of employee rights violation.

Shell has seized sacked-service tax breaks for terminated employees overseas. According to sources close to the matter, the company plans to give a tough time to its pensioners as well.

Furthermore, when laying off employees as part of its cost-cutting program, the company doesn’t consider the sentiments of its redundant workers as to how would they react when invited to apply back for the same positions that they previously worked at.

Ethics and employee rights are two main drivers of a company’s success and its violation could lead to protests at Shell; a trouble that the company would not welcome amid the oil price environment.

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