Job Reductions Announced for Bornholm

Randers, May 27, 2014 The Danish Crown has confirmed that it will not be able to preserve the 190 jobs at its Bornholm slaughterhouse, following the firm stance of the Danish Food and Allied Workers’ Union NNF. The management of Danish Crown will visit Bornholm tomorrow to inform the employees about the decision. Jesper Friis, CEO of DC Pork, stated that the union had outrightly rejected their final proposal. He expressed hope that the union might reconsider their decision in the coming days. However, he acknowledged that the recent announcement made it clear that the slaughterhouse's days were limited. The decision follows nearly five months of intense negotiations. Earlier this week, there was optimism that an agreement could be reached on the necessary cutbacks to keep the slaughterhouse operational. Friis noted that all other parties had proposed solutions that involved sacrifices or costs. However, he lamented that the Danish Food and Allied Workers’ Union NNF was not willing to consider wage costs, which made it impossible to proceed with the plan. Friis highlighted that the Danish Crown slaughterhouse is one of the largest private employers on Bornholm. Despite the unique situation on Bornholm, an ambitious plan was developed, with owners, partners, and local politicians all working hard to find solutions. However, he emphasized that it was clear from the beginning that wage costs at the slaughterhouse needed to be addressed due to the high average hourly rates of DKK 197. Friis reiterated that Danish Crown was always dedicated to finding a feasible solution. He stated that they needed to reduce the slaughterhouse's operating costs by DKK 20-25 million. If the union had accepted their proposal, they could have achieved savings of nearly DKK 20 million annually. Although this was not entirely sufficient, it would have been a positive step towards continuing operations. Danish Crown anticipates shutting down the Bornholm slaughterhouse in early autumn 2014. A job bank will be set up to assist employees in finding new jobs, and individual social plans will also be developed.