Compromise deal saves Danish Crown’s Bornholm factory

Compromise deal saves Danish Crown’s Bornholm factory

The Copenhagen Post has reported that Danish Crown’s slaughter house at Bornholm has narrowly escaped closure.

The slaughterhouse located in the Baltic Sea is the tiny island’s largest employer, employing around 190 people; its threatened closure would have had a knock-on effect on the employment of other islanders. Danish Crown has demanded an annual cost reduction of 25 million kroner (£27.5m) and pig producers, process workers and island leaders have been working together throughout 2014 to find ways of bridging the financial gap. The company indicated that most of the money had been found but the NNF union’s refusal to accept an eight per cent pay cut would result in closure of the plant. Although the slaughterhouse workers had accepted the prospect of lower wages they wanted the money to be put into an investment fund which would be paid back to them in the future; Danish Crown were holding out against this proposal.

The indications are that the abattoir will be saved after a crucial meeting held after Danish Crown’s original deadline of 2nd June. The compromise is for the abattoir to operate for another five years provided the labour force pay 3.5% of their wages into an investment fund to be used to keep the processing plant in business. The workers will not actually feel this wage cut since already they pay 3.5% of their wages into either a holiday fund or into their pensions. The idea is that after the five year period they will get their money back. Additionally, the Danish government will be subsidising the factory by 1.3 million Kroner (£1.43m) from its rural district programme.

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