Monday 26 November 2007
Below is an email received today. We do not know if the allegations have substance and will be seeking more information.
Dear Mr. John Donovan:
We, employees of Shell Ethiopia, would like to request your kind assistance in exposing the fraud committed by Shell against Shell Ethiopia employees.
Royal Dutch Shell is in the process of transferring its downstream interest in Ethiopia to another company. In order to save money from this transfer process, it colluded with the local management team and changed the separation payment policy that has been in place ever since the company started its operation in Ethiopia. As per the new policy, Shell is set to save USD 500,000.00 while the local management team members get an additional payment to the tune of USD 100,000 each. The saving to Shell and the additional payment to the local management team members comes from reduced separation payment of 90% of the total staff, with some staff losing as much as 70%.
All affected employees who account to over 90% of the total employees have now taken the case to a court in Ethiopia.
Ethiopia is one of the poorest countries in the world and yet Shell which earns over USD 44 billion in annual operating profit, doesn’t hesitate to robe its own employees for a mere saving of USD 500,000. This incident by itself clearly exposes the true identity of Shell. Hence your kind assistance in exposing this horrendous crime to the global community will be a service that will be long remembered by the majority of Shell Ethiopia staff.
The article below that appeared on the weekly news paper of âADDIS FORTUNEâ explains in detail the scam committed by Shell.
(name and email address supplied)
THE WHOLE ARTICLE THAT APPEARED IN THE WEEKLY NEWS PAPER OF ADDIS FORTUNE
Management of Shell Ethiopia to Profit from Exit
The management and some senior members of Shell Ethiopia are set to amass millions of Birr in separation payment when the oil giant moves out of Ethiopia. This may surprise many of you given the exorbitant payment each management member is entitled to. There is a simple explanation for this “never heard of” separation payment in Ethiopia.
Ever since the company started its operation in Ethiopia, it used to apply one formula when calculating separation payments for its staff that leave company service earlier than their retirement date, for various reasons. This formula has been used as recently as November 2006.
Around April 2007, the company has replaced this formula with a new one: Less than 10pc of the employees, most are management members, will get as high as 40pc more than what they get if the old formula were to be applied to calculate their separation payments.
Around 90pc of the employees will get a much lesser payment; some will lose as much as 70pc.
It may sound puzzling why the company does this to the majority of its employees who have loyally served it for many years. The answer is simple. The company is set to save around 4.6 million Br by applying the new formula (this saving is calculated on the basis of the assumption that all employees leave Shell). It means that the huge amount of saving that will come from reduced separation payment of the majority of staff will be split between the local management and the company.
Shell is the third largest and richest company in the world next to Wal-Mart and ExxonMobil. Its net profit last year was over 26 billion dollars and it is expected to earn over 28 billion dollars by end of 2007. Out of the 28 billion dollar profit expected this year, around 500,000 dollars will be coming from Ethiopia, the saving earned by changing the formula that has been in place for over 40 years..