“This deal is a good example of the Danish model where, together, unions and employees find a solution to save jobs that matter for all of Bornholm. Likewise, the local authorities, notably the town of Bornholm, clearly wanted to be a part of this outcome,” rejoiced Karsten Dybvad, administrative director of Dansk Industri. After the break between the union and the company at the end of May – the group demanding an 8-percent pay cut for nothing in return, threatening to permanently close the plant next fall – Dansk Industri, the Fødevareforbundet NNF union, and the Ministry of Growth and Trade (Erhvervs- og vækstministeriet) took hold of the case and, after intense talks, presented their agreement on the factory’s rescue plan to the workers and the press yesterday, June 4.
Denmark: deal to keep a Danish Crown slaughter factory from closing by creating an investment firm where workers will send part of their salary
To rescue Danish Crown’s slaughterhouse in Rønne, on Bornholm island, an investment company will be created: for 5 years, employees will send 3.5 percent of their salary – an investment they can get back with possible interest. After the talks broke in May between the union and the group, which announced that the plant would shut down this fall if the workers didn’t accept an 8-percent pay cut, the commitment made by the government and the town’s administration – both mobilized to save the 190 jobs at risk – was decisive. Unions and some experts are already saying that this deal – which only covers this one Danish Crown factory – is an example to follow to avoid relocating jobs abroad.
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