(Oslo, 25 August 2011) EDB ErgoGroup ASA has entered into a settlement agreement
in connection with a pension dispute relating to the former EDB Business Partner
EDB ErgoGroup has entered into a settlement agreement with the trade unions in
Norway, and as a result the trade unions will not support legal proceedings in
The background for the dispute was that EDB Business Partner ASA decided on 13
July 2009 to terminate the company's closed defined benefit pension scheme in
Norway with effect from 1 September 2009. All members of the closed defined
benefit pension scheme were transferred at this date to EDB's defined
contribution pension scheme. The termination of the defined benefit pension
scheme caused a non-recurring accounting effect of NOK 568 million in the third
quarter of 2009, with announced annual cost savings of NOK 70 million. A group
of employees have given notice of their intention to issue legal proceedings in
the Oslo District Court to challenge the company's right to make changes to the
defined benefit scheme unilaterally.
Under the terms of the settlement, the compensation scheme established in 2009
upon the termination of the defined benefit scheme will continue unchanged,
however, contrary to the current agreement, the company will no longer be
entitled to change unilaterally the terms of this arrangement irrespective of
reason. In addition, the company has agreed to pay new cash compensation with
effect from 1 January 2011 to affected employees who are employed by the company
as of today's date for as long as they remain in the company's employment. The
annual effect on EBITA and cash flow for EDB ErgoGroup will be in the order of
NOK 9 million, and the discounted present value is estimated to be NOK 67
million. The settlement will have no impact on the company's balance sheet.
"I made it clear in connection with the merger that one of the main tasks was to
take care of our customers and employees. The pension case has been demanding.
I wanted to take a fresh look at the case, together with the employee
representatives, to see if it was possible to find a solution without legal
proceedings. I have put great emphasis on finding a solution that takes into
account the interests of both the employees and the company", comments Terje
Mjøs, CEO of EDB ErgoGroup.
Terje Mjøs, CEO, EDB ErgoGroup. Tel: + 47 06500
Eli Giske, CFO, EDB ErgoGroup. Tel: +47 908 44 189
Geir Remman, SVP Corporate Communications, EDB ErgoGroup. Tel: + 47 970 55 017
About EDB ErgoGroup
EDB ErgoGroup ASA is one of the leading Nordic IT companies, with some 10,000
employees and annual turnover approaching NOK 13 billion. The company is listed
on the Oslo Stock Exchange and operates from headquarters in Oslo with major
activities in both the Norwegian and Swedish markets. In all, the company
operates from 135 offices in 16 countries around the world.
This information is subject to the disclosure requirements stipulated in §5-12
of the Norwegian Securities Trading Act.
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Source: EDB ErgoGroup ASA via Thomson Reuters ONE