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Danish Crown Slaughterhouses to Be Wound Down

by 5m Editor
7 April 2010, at 7:22am

DENMARK - Following the failure of its plan to cut slaughterhouse wages by 20 per cent in a bid to become competitive, much of Danish Crown’s pig slaughtering in Denmark will be phased out.

The cooperative is to axe 600 jobs when opportunities arise and in future, most of its processing will take place in countries where slaughterhouse costs are lower.

It will have to retain some domestic slaughtering capability, however, in order to retain its export approvals for Japan and the United States.

Danish Crown wanted to cut costs by £220m, with £70m of this coming from wage cuts.

But talks with the workforce failed and a mediator now says slaughterhouse workers should be guaranteed the same salary increases as the rest of the private labour market in Denmark.

This proposal covers around 600,000 employees and signals significant increases in Danish Crown operating costs.

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