News 1132 views last update:Feb 25, 2016

Agreement to save Danish Crown's slaughterhouse, jobs

The Danish Food and Allied Workers’ Union NNF and the Confederation of Danish Industry are today presenting a joint rescue plan for Danish Crown’s slaughterhouse in Rønne on the Danish island of Bornholm. Following intense negotiations, the parties have reached a five-year agreement which saves the slaughterhouse on the island as well as the jobs of its 190 employees.

The agreement has been reached with assistance from the Danish Ministry of Business and Growth. The parties to the collective agreement are grateful for the important contribution made by the ministry.

"I am extremely pleased that we have been able to reach an agreement which avoids the closure of the slaughterhouse in Rønne. It has been crucial for us that the agreement should not entail pay cuts for our members, but that they will instead be investing in their workplace. It is also important for me that the slaughterhouse workers will now be given a chance to vote for or against the agreement," says Ole Wehlast, Chairman of the Danish Food and Allied Workers' Union NNF.

Under the agreement, an employee investment company will be set up which will contribute to financing investments in the slaughterhouse.

"The agreement is a fine example of the Danish model at work in that employees and employers have together devised a solution which will save a workplace which is so incredibly important for the whole island of Bornholm. Also, the local community has demonstrated a clear willingness to contribute to overcoming the difficulties, including the Municipality of Bornholm," says Director General and CEO of DI Karsten Dybvad.

The Ministry of Business and Growth will, among other things, be introducing legislation which permits the establishment of employee investment companies.

"The closure of the slaughterhouse would have far-reaching consequences for Bornholm. I am therefore very pleased that we succeeded in finding a good and sensible solution to what was a very serious situation for the slaughterhouse. It means a lot – not just for the many slaughterhouse workers, but also for farmers, secondary industries and for hundreds of families on the island," says Minister for Business and Growth Henrik Sass Larsen.

The Ministry of Business and Growth has committed the Danish State to providing funds for the co-financing of new investments at Danish Crown, which will be able to modernise and develop its slaughterhouse activities on Bornholm.

The agreement is subject to approval of the rescue plan by both parties in June.

Also read: Danish Crown: Slaughterhouse to shut, 190 jobs lost

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