Large-Scale Closure of Danish Abattoirs Likely
29 March 2010
DENMARK - Denmark is facing large-scale closure of its slaughterhouses. Up to 600 jobs may be relocated abroad by Danish Crown, mostly to Germany.
This follows a failure to persuade the Danish food union to agree 20 per cent pay cuts.
Danish Crown cannot offer its pig producer members a competitive price for their pigs unless it cuts its slaughtering costs.
As a result the Danish pig industry is hemorrhaging millions of weaners and finishers to Germany, where they fetch a better price.
The Danish food union has failed to agree a new collective agreement covering around 16,000 workers in the food industry and slaughterhouses.
A conciliator has been called in but he has concluded the parties are too far apart to reach an agreement.
Danish Crown may now move slaughterhouse jobs abroad, to countries with a lower cost base.
German slaughterhouse costs are 50 per cent lower than in Denmark, because of Germany's easy access to cheap eastern European labour.
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