S' RUBA
Esso
NEWI
Vol. 44 No. 2 -March 1983




e r a1


L






ARUBA ESSO NEWS


C.C. Garvin, Jr.:



'82, difficult year for industry


Exxon's net income rose 6.9% to $1,480 million in the
fourth quarter of 1982. For the year, however, net
income earnings fell 13.3% compared with 1981.

Exxon Chairman C.C. Garvin, Jr. made the following
comments on the operating environment in 1982:

"The year just concluded must be judged as a difficult
one for the petroleum industry. Exxon, along with the
industry in general, was faced with continuing
reductions in demand for petroleum and chemical
products and related excess capacity in all phases of these
operations.

"In this environment, Exxon took various actions which
should have continuing beneficial financial effects,
including streamlining current operations through
inventory reductions, plant closures and staff reductions,
slowing down the rate of growth in capital expenditures,
postponing some planned major projects and reducing
and restructuring debt to reduce overall borrowing costs
and maintain the corporation's strong financial
condition. External debt was reduced approximately
one billion dollars during 1982."

Garvin then went on to analyze specific 1982 results by
major business segments:

"Petroleum exploration and production earnings in the U.S. of
$1,873 million were down 17% from 1981. Higher


exploration costs, together with higher producing
operating expenses and provision for the disposition of
certain regulatory and tax matters, were the main factors
in the earnings decline.

"Abroad, petroleum exploration andproduction earnings totaled
$1,519 million, down from $1,856 million in 1981. Lower
earnings from Aramco and higher operating costs,
including taxes and royalties, contributed to the decline.
Natural gas production in Europe declined. Purchased
crude oil supplies under long-term agreements \\ith
foreign governments declined 34%.

"Earnings from refining and marketing operations in the ( .'.
were $447 million, up h-om S87 million in 1981. The
absence of unfavorable cost adjustments booked in 1981
associated with wind up of the crude oil price control
regulations, together with improved margins in 1982,
accounted for the earnings improvement.

"Foreign refining and marketing operations were severcl
impacted by the unfavorable prevailing market
conditions. Earnings totaled $666 million, down liom
$1,021 million in 1981, with the major impact in Europe.

"International marine operations incurred losses of S98
million as compared with earnings of S29 million in the
previous year.

"In other energy operations, net losses of $102 million \wcrc
dominated by the charges against earnings for
mothballing the Colony Shale Project in Colorado.

"Earnings from utorlduide chemical operations der lined 61%
to $92 million from $238 million in 1981 and were
particularly severe in the L'.S. and Canada.

The Other Operations segment had earnings of S36 million
as contrasted with losses of S43 million in the p)evioius
year. Real estate operations continued prolitabl."

C.C. Garvin, Jr.:


'82, ania dificil


pa industrial

E entrada neto den ultimo trimester di '82 a subi cu 6.9%4
te na $1,480 miyon den edi cuatro trimester di afia 1982.
Pa henter e aina, sinembargo, ganashi neto di entrada a
baha cu 13.3% compare cu 1981.

Chairman di Exxon, C.C. Garvin, Jr.. a haci e siguiente
remarcanan tocante e circumstancianan di operation
den 1982: "Mester consider e afia cu a pasa como un
afia dificil pa industrial petrolera. Exxon, hunto cu e
industrial en general, mester a trata cu reduccionnan
continue den demand di petroleo y productonan
quimica y, relaciona cu esey, capacidad excesivo den tur
fase di tal operation.
(cont. arrba pa4. 3)


K -


----------


March 1983







March 1983 ARUBA ESSO NEWS


I would like to know ...

Editorial note: From time to time, certain questions will
repeatedly be asked by employees. Whenever it is felt that
other employees would also berefit from such questions and
answers, it will be further publicized. Below follows a
question that has been frequently asked during the last few
months.


Question:


Answer:


Resultado di Exxon ..... (con. di pag. 2)
"Den e ambicntc aki, Exxon a tuma various media
cualnan 1o master tin, a base continue, efectonan
linanciero benelicioso, incluyendo haci e operation
act ual mas eficiente pa medio di reduction di inventario,
scra plant y reduce personal, mengua crecimento den
gastonan di capital, pospone algun projectonan grand
cu ya tabata planeA, y reduce y restructure debenan pa
reduce gastonan total di prestamo y pa manten6 e
condition financicro fuerte di e corporation.
Debenan externo a ser reduce cu mas o menos un biyon di
dollar durante aria 1982.

"Siguientemente, Garvin a sigi analisa e resultadonan
especifico di 1982 segun segmentonan principal di e
negoshi.

Ganashi di eAploracion y production di petroleo den E.U. di
$1,873 miyon a baha cu 17% for di 1981. E factornan
principal pa e reduction di ganashi tabata gastonan mas
halto di exploracion, hunto cu gastonan mas halto di
operation di production, y provision pa disposicion di
asuntonan di regulation y impuesto.

"Den exterior, ganashi di production y exploracion di petroleo a
yega na un total di $1,519 miyon, un rebaho di e $1,856
miyon na 1981.

Menos ganashi di Aramco y aumento den gasto di
operation, incluyendo impuesto y pago di ganancia, a
contribui na e rebaho. Produccion di gas natural na


Europa a baha.
bao di acuerdo a
baha cu 34%.


What are the procedures I
should follow with my Dental/
Medical claim form?
As was announced in a letter to
all employees at the end of December
'82, changes have been made in the
claims procedure. The upper portion
of the claim form, available at Rm.
155 of the G.O.B., should be completed
by the employee. After the doctor or
hospital fills out the backside of
the form, it should be forwarded to
American Life Insurance Company
(ALICO). The Insurance Company will
then pay the doctor or hospital in
accordance with the Program and send
you an 'Explanation and Benefits'
copy. This will inform you on what the
Insurance Company has paid, when, and
will show you the balance, if any,
which you owe the provider.
If you have paid your bill, you
should attach your 'paid' receipt
with the form and send it
to the Insurance Company which will
then make payment directly to you.


Suministro di petroleo crudo cumprd
largo plazo cu gobiernonan stranhero a


"Ganashi di operation di refinaciony mercadeo den E. U. tabata
$447 miyon, un aumento for di e $87 miyon na 1981. E
ausencia di e ahustenan desfavorable di gasto cu a ser
noti na 1981 asociA cue arreglo die regulation di control
di prijs di petroleo crudo, hunto cu un margen mehorA
na 1982, tabata responsabel pa e mehoracion den
ganancia.

"Operacion den exterior di refinaciony mercado a haya un sla
duro door di e condition di mercado desfavorable cu ta
prevalece. Ganashi a suma na $666 miyon, un rebaho for
di e $1,021 miyon na 1981, cu e major impact na
Europa. Operacion maritima international a corre cu
debe di $98 miyon, en comparacion cu e ganashi di $29
miyon di e afia anterior.
"Den otro operacionnan di energia, p6rdidanan neto di $102
miyon a ser dominA pa e cobranza en contra die ganashi
pa desbaratA e Colony Shale Project na Colorado.
"Ganashi di operacionnan quimica mundial a baha cu 61% pa
$92 miyon for di $238 miyon na 1981 y tabata
particularmente severe den E.U. y Canada.
"E segmentonan di Otro Operacionnan tabatin ganashi di S36
miyon en contrast cu e $43 miyon di perdida den en aia
anterior. Operacion di "real estate" a sigi cu ganashi."


I


MEMEN


ARUBA ESSO NEWS


March 1983






ARUBA ESSO NEWS


New CWA signed by

Lago, IOWUA

On February 11, 1983, the Independent Oil Workers
Union of Aruba and Lago signed the new Collective
Working Agreement, which became effective on
February 1, 1983, and will expire on July 15, 1986.

On behalf of Lago the new contract was signed by
President G.E. Golden, Employee Relations Manager
H.F. Coffi and Chairman of the Management
Bargaining Representatives M. Angela.
IOWUA signatories were M. Arends, President; F.
Garrido, General Secretary; and R.C. Boekhoudt,
Treasurer.
The new CWA was ratified when Union members voted
on January 28 to accept the Agreement in Principle as
was priorly accorded by IOWUA and Lago
representatives.

The main improvements in the new CWA are:

*** 11.0% General Wage Increase which includes a
general improvement increase of4%, in addition to COL
compensation.


*** Three times a
adjustments on wages.


year Cost-Of-Living (COL)


Sitting from left to right, CWA signatories for Lfgo Messrs.
Henri Coffi, Marciano Angela and Jerry Golden, with Tony
Cavallaro looking on. Standing, Mitch Henriquez of Labor
Relations.

*** 1% Increase in the Company's contilibution to the
Vacation Savings Plan (from 5% to 6%).

*** A one-time lumpsum of Fls. 550.

*** Increase in shift dillerential from PFs. 1.49 to F 1.75
per hour.

*** Increase in overtime lunch reimbursement from FIs.
2.15 to Fls. 2.50 per hour.

*** Increase in overtime car transportation ronm 50 to 52
cents per kilometer.


*** Service-in-Grade Increments
5 yrs 10 yrs 15 yrs 20 \rs
20c hr 28c hr 45c hr 56c hr


Lago's office personnel are now also receiving training in fire
fighting. In a recently established program, man and woman are
taught to use the equipment for extinguishing building fires and
also learn the evacuation procedures in case of emergencies. The
Fire Section is planning to conduct this training once a monthfor
the next ten months to cover most office personnel.


*** Improvement in Vacation da\s for those \ith o\ r
one year of service, fi'om 15 to 18 da\s and for those with
over 20 years of service from 23 to 24 vacation da\s.

*** The Medical Expense Reimbursement Plan and the
Long Service Recognition Prog am have been
significantly improved. Extensive coverage to these
programs was given in the Februair issue of the At ba
Esso News.

*** The Dental Plan now covers 75% of preventive care
treatment with a maximum of Fls. 100 per person pet
calendar year. It also covers 50% of basic and major
treatment up to Fls. 1000 per person per year and FIs
2500 per family per year in or outside the Netherlands
Antilles. The Plan has been extended to cover children
up to 23 years of age when attending school and also
includes children 19 years and over when not capable of
self-sustaining employment by reason of mental
retardation or phisiscal handicap if so approved by
Lago's Medical Director.

*** Additional time oll'with pay has been given lor the
birth of employee's legal child or legally recognized
child, change of employee's residence to register move,
for receipt of 10-year service award, and for Union
business meetings.

Furthermore, the traditional Christmas bonus will
continue to be paid in the form ofa 4-\eek regular pa\ in
December of 1983, '84, and '85. The year-end lumpsum
payment of Fls. 1000, last paid in February, will also
continue to be paid in December of 1983, '84 and '85.


incl eased
25 \ rs
62c hr


EL-


March 1983






March 1983 ARUBA ESSO NEWS 5


Combenio nobo firmd

pa Lago, IOWUA

Dia 11 di Februari, 1983. Independent Oil Workers
Union of Aruba, y Lago a firma c CombenioColectivo di
Trabow nobo, cual a bira cfectivo dia 1 di Februari,
1983, \ lo caduca dia 15 di Juli, 1986.

Na number di Lago e contrato nobo a ser firm pa
President, G.E. Golden: Manager di Employee
Relations. H.F. Colli: v Chairman di Management
Bargaining Representatives. M. Angela.

Firmantenan pa IOWUA tabata M. Arends, Presidente;
F. Garrido, Secretario General v R.C. Boekhoudt,
Tesorero.
E combcnio nobo a ser ratifica ora cu miembronan di
Sindicato a vota dia 28 di Januari pa acepta e Acuerdo
en Piincipio cu t a kaba representantenan di IOWC'A y
Lago a aproba.



U. f


Mi lo kier sa .......

Notal editorial: De vez en cuando, empleadonan
repetidamente ta haci cierto preguntanan. Ora ta wordo
pensd cu otro empleadonan tambe lo por beneficia, tal
pregunta y contest lo haya mas publication.
Aki bao ta sigi un pregunta cu a word hacifrequentemente
durante e ultimo lunanan.

Pregunta: Cual ta e procedimiento mi master
sigi cu e formulario di reclamo
Dental y Medico?
Contest: Manera a ser anuncid den un carta na tur
empleado nafin di December, '82, cambionan
a ser had den e procedimiento di reclamo.
E empleado mesteryena e part ariba di e
formulario cual ta disponible na Oficina 155
di G. O.B.
Despues cu e dokter of hospital yena e part
patras di eformulario e mester wordo mandd
pa American Life Insurance Company
(ALICO). E ora e compania di seguro lo paga
e dokter of hospital di acuerdo cu eprogramay
lo mandabo un copia di "Splicaciony
Beneficio".
Esaki lo informabo di local e
Compania di seguro a paga, ki dia esey a
wordo had, y kiko bo saldo ta, si tin algun, cu
cu bo debe na esnan cu a dunabo servicio.
Si bo a paga bo recibo, bo mester manda bo
recibo di pago hunto cu e formulario pa e
Compania di seguro kende e ora lo pagabo
\ directamente.


Firmantenan pa IOWUA, sinti di robez pa drechi, Srs.
Ramiro Boekhoudt, Milo Arends y Felix Garrido, mientras
cu Carlos de Cuba di Public Relations ta observando.

E combenio nobo ta enwca ce siguiente mehoracionnan
principal:

*** 11 0% di Aumento General di Salario cual ta inclui
un mehoracion di aumcnto general di 4%, ademas di
compensacion di COL.

*** Tres vez pa afia. ahustamento di costo di bida ariba
salario.

*** 1% di aumento den e contribution di Compania na
Vacation Savings Plan (di 5% pa 6%).

*** Un solo suma di Fls. 550.

*** Aumento pa trabow di warda di Fls. 1.49 pa Fls. 1.75
pa ora.

*** Aumento den reembolso pa cuminda di overtime for
di Fls. 2.15 pa FIs. 2.50 pa ora.

*** Aumento den transportation pa overtime di 50 pa 52
cent pa kilometer.

** Service-in-Grade increments a aumentA pa lo
siguiente:
5 yrs 10 yrs 15 yrs 20 yrs 25 yrs
20c hr 28c hr 45c hr 56c hr 62c hr


*** Mehoracion den
aia di servicio, di 15
afia di servicio di 23


dianan di vacacion pa esnan cu un
pa 18 dia y pa esnan cu mas di 20
pa 24 dia di vacation.


*** E plan pa reembolso di gastonan medico y e
program di reconocimiento na esnan cu hopi afia den
servicio a ser mehorA significantemente. E contenido di e
programanan aki a wordo cubri extensivamente den e
edicion di Februari di Aruba Esso News.

*** E Dental Plan awor ta cubri 75% di cuido preventive
cu un maximo di Fls. 100 pa persona pa afia calendario.
E ta cubri tambe 50% di tratamento basico y major te cu
Fls. 1,000 pa persona pa afia y Fls. 2,500 pa famia pa afia,
sea ariba of pafor di Antillas Neerlandes. E plan a ser
extend pa cubrijiunan te cu 23 aria si nan ta bai school y
tambe yiunan ariba 19 aia cu no ta capaz di sostene nan
mes pa motibo di retardacion mental ofalgun handicap
fisico si asina aproba pa e Director Medico di Lago.

*** Tempo liber adicional cu pago a se." duni pa
nacemento di jit legal di empleado of jiu legalmente
reconoci, cambio den residencia di empleado pa registrar
mudanza, pa ricibi reconocimiento di 10 afia di servicio
y pa reunion di asuntonan di Sindicato.

Ademas, e bonus traditional di Pascu lo sigi wordo paga
den forma di un pago regular di 4 siman na December di
1983, '84, y '85. E suma total di Fls. 1000 cu ta word
paga na fin di aia, y ultimo a ser paga na Februari,
tambe lo sigi word paga na December di 1983, '84 y'85.






ARUBA ESSO NEWS


Seguridad, resultado di esfuerzo mutuo



now 11


Sy

b .


Ye'


Mayoria di empleado sabi cu e record di seguridad di
Lago di 1982 tabata mihor cu di aia '81 y'80. E record di
Lago tabata suficientemente bon cu ela conquisti e
tercer lugar den e contest di 1982 cu National Safety
Council tabatin pa companianan di Refinacion V
Productonan Petrolera. Sinembargo, den asuntonan di
seguridad, e meta ta semper pa reduce e nivel di
accident na zero.
Pa haci Compania un lugar ainda mas sigur pa traha,
Lago a contratA un Du Pont SeniorSafety Consultant pa
asisti den e continue mehoracion den ehecucion di
seguridad na Lago.

Dikon Du Pont? E negoshi aki cu tin 180 afia di
existencia, historicamente a trata cu seguridad manera
un tesoro: pa mas o menos 100 afia, e famia Du Pont
tabata fabric productonan explosive, y falta di
seguridad lo por a nifica liquidacion inmediato. Du
Pont, un compania di 150,000 empleado reparti ariba
center mundo, tin 100 vez un mihor ehecucion di
seguridad ora comparele cu e averahe total industrial.
Un plant di Du Pont a logra acumuli 66 miyon ora
obreril sin ningun accident incapacitante. Y por lo
menos 100 di su 140 plantanan tin mas di 1 miyon ora
obreril sin accident incapacitante. BasA ariba Du Pont
su experiencianan exitoso den seguridad, e compania a
establece un servicio di consult den seguridad.

Sr. Dwight Monk, un Profesional di Seguridad Certifici
di Du Pont recientemente tabata akinan ariba un bishita
di tres siman. Sr. Monk a bisa cu e promer paso cu e
mester a tuma promer cu e por a recomenda plan di
accion den seguridad tabata di sifia local tabata sosode
den refineria door di "pasa hopi tempo observando con
empleadonan ta haci nan trabow." Tambe ela entrevista
hende di tur nivel di operation, diPresidente di Lago, pa
Directiva di Sindicato, y empleadonan cu ta traha den
plant.

"Na Du Pont nos ta kere cu seguridad ta e resultado di
un bon esfuerzo mutuo entire empleado y gerencia," Sr.
Monk a comentA. "Gerencia ta responsabel pa pone
prioridad, provee un direction general pa e esfuerzo di
seguridad, establec6 reglamento y procedimiento cu e
ayuda di empleado, y control e progress di e ehecucion
di seguridad."


Algun empleado den Mecha-
nical shops akinan ta mustra
Sr. Monk di Du Pont con nan
ta eherce nan trabow atenien-
do nan mes na reglanan di se-
guridad.


Y e empleadonan, "nan ta responsabcl pa sigi c regla \
procedimientonan," Sr. Monk a bisa. "Pero \ a ( u no tin
regla pa tur cos, nan lo meslti planca sgci ridad den tin
trabow cu nan ta haci. y entrega silucitncia pa
mehoracion di seguridad. Tambe Sr. Mlonk a lobsi \,i u
empleadonan master desarom tin "actitiu di
preocupacion pa prohimo. Esaki ta nilici cu un
empleado mester kier duna otiontan ( ornsclho aril~a
seguridad y na mesun tempo no rabia ona tn on lio eliin
dun6 tin conseho."

Despues di a studia e icgia y procedimientonan. analia
con seguridad ta wordo comunicai y (on crnipleado (a scN
envolvi den seguridad, Sr. Monk a clsaroya su
recomendacionnan basic arila local u l Pont. Ipa
experiencia,a demonstrate di "la ctectino. Y atun(lq' Si
Monk ta pensa cu lo tuma aliuin tempo pa it
recomendacionnan tin algun elccto aib)a estladistl a di
ehecucion di seguridad, cla bisa, "Nos la kcrl ( i
seguridad ta bon pa negoshi. y cu lur accident pot
wordo prevent.
Seguramente esey ta un bon lilosofia pa pon d(en
practice.



Formulario pa

beca disponible

awor
Formulario di Aplicacion pa asistencia di Lago
Scholarship Foundation ta disponible desde a\\or
te cu dia 31 di Maart na e siguiente lugarnan:

Colegio Arubano Sra. Ans \'issei
MTS Seroe Blanco Administracion
Lobby di G.O.B. Scciirit\ Guard

Formularionan cu a ser complete mestci \,.ordo
entrega na Oficina 165 di G.O.B. promer cu dia 8
di April. 1983.


.


March 1983









Safety, result of team effort





One of the many places that Mr.
Monk visited on his 'safety' tour
of the refinery was the
Mechanical Shops. Here some
employees are showing him
I ihow they perform their jobs
with safety in mind.


Most emplo ees are aware that Lago's 1982 safety record
%as better than that of '81 and '80. Lago's record was
even good enough that it placed third in the 1982
National Salet\ Council contest for Petroleum Products
and Refining companies. Still, in matters of safety, the
aim is always to reduce the injury level to nil. To make
the Company an even safer place to work at, Lago has
contracted a Du Pont Senior Safety Consultant to assist
in further improving Lago's safety performance.

\\h\ I)u Pont? This 180 years old business has
historical) treasured safety: foi about 100 years the Du
Pont family has been manufacturing explosives, and lack
of salt\ could have meant instant liquidation. Du Pont,
a company with 150,000 employees spread out all over
the world, has a 100 times better safety performance
when compared to the all-industry average. One Du
Point plant managed to accumulate 66 million exposure
hours without a disabling injury. And at least 100 out of
its 140 plants have more than 1 million exposure hours
without a disabling injury. Out of the company's
successful safety experience came the Du Pont safety
consulting service.

Mr. Dwight Monk. a Certified Safety Professional from
Du Pont, was recently here on a three week visit. Mr.
Monk said that the first step he had to take before
recommending any safety action plan was to learn what
goes on in the refinery by spending "a considerable
amount of time watching how Lago employees
performed their jobs." He also interviewed people from
all levels of refinery operations, from the Lago President,
to the Union board members, to the employees working
in the field. "We at Du Pont believe that safety is the
result of a good team effort between employees and
management," commented Mr. Monk. "Management
is responsible for setting priorities, providing the overall
direction of the safety effort, establishing rules and
procedures with the help of employees, and monitoring
the progress of safety performance."

As for the employees, "they are responsible for following
the rules and procedures," said Mr. Monk. But as there


are no rules for everything, they should plan safety in
every job they do, and turn in suggestions for safety
improvement." Mr. Monk also observed that employees
should develop a "brother's keeper attitude. This means
that an employee should be willing to pass on safety
advice to others and at the same time not become upset
when someone else passes on advice to him."

After looking at Lago's rules and procedure, analyzing
how safety is communicated and how people are
involved in safety, Mr. Monk has developed his
recommendations based on the things Du Pont, by
experience, has proven to be effective.


Even though Mr. Monk thinks that it will take some time
before his recommendations take effect on the safety
performance statistics, he said "We believe that safety is
good business and that all injuries can be prevented."
Certainly a good philosophy to live by!


LSF application


available now


Application
Foundation
March 31 at


forms for the Lago Scholarship
assistance are available now until
the following locations:


Colegio Arubano Mrs. Ans Visser
MTS Seroe Blanco Administration
G.O.B. Lobby Segurity Guard

Completed forms should be returned to Room 165
of the G.O.B. not later than April 8, 1983.


ARUBA ESSO NEWS


Maart 1983




8 ARUBA ESSO NEWS March 1983


People.


-B~iUa~g


Th;Ij


Snits undergo turnarounds, buildings are
constructed, and repairs are made ..... The refinery
keeps running!
There's no place for phobias in a place like this.
There are towers to climb, high scaffolds to stand on,
and dark, closed-in furnaces to work in ....
The Refinery is bustling with activity, and it's the
refinery people who are doing the job. .....


; 2


Refinery