Pig Production Investment by Slaughterhouse Workers

Randers, September 3, 2013 The plan is aimed at reversing the declining job numbers at Danish Crown's pig slaughterhouses by reinstating the company's pig production for slaughter by its members. - This is a revolutionary plan that needs to be put to a vote by all our colleagues. The trend we've been observing for several years has been quite severe in terms of the number of colleagues we have at the pig slaughterhouses in Denmark. We aim to reverse this trend. This is about preserving our jobs, states Lars Mose, the head of the union representatives committee at Danish Crown. The initiative was spearheaded by the union representatives committee and the plan has been discussed with the management of the group's pork division, DC Pork. - This is a commendable and highly responsible move by the union representatives committee. It also signifies that, for the first time in many years, we are looking at a four-year period where we won't be shutting down pig slaughterhouses, which is very positive. For this to occur, the plan must, of course, yield the expected results, and ensure a sufficient number of pigs for slaughter for us to use our capacity, states Jesper Friis, CEO of DC Pork. The goal of the plan is to boost the production of pigs for slaughter by up to three million animals over the next four years. If achieved, this will not only secure Danish workplaces, but also create new jobs. - We have recently unveiled a detailed strategy on how to enhance the financial performance of DC Pork, and now the union representatives are leading the way by making a significant contribution. It means that everyone in DC Pork will be working towards changing the current situation. As a result, we are also eagerly awaiting the very positive political announcements made by both the Danish Minister for Business and Growth Henrik Sass Larsen and the Minister for Food, Agriculture and Fisheries of Denmark Karen Hækkerup being turned into tangible actions, states Jesper Friis. - We are facing the possibility of having to bid farewell to another large group of colleagues if the current drop in the production of pigs for slaughter continues. Therefore, what we are proposing is not another cost-cutting measure for the slaughterhouse – instead, the agreement is dependent on all the money being used to co-finance an increase in the production of pigs for slaughter by Danish Crown’s owners, states Lars Mose. The investment will also be dependent on individual farmers actually being able to boost their production. - This is a unique initiative that can bring stability to the agricultural sector. With an investment fund like this, we are laying the groundwork for some very necessary investments in pig production – investments that must be supported by the farmers and the financial institutions. In fact, we are talking about investments in pig production to the tune of DKK 3 billion, states Erik Bredholt, Chairman of Danish Crown’s Board of Directors. In relation to the agreement, the factory managers at the Danish factories have pledged to also make a contribution. As has the top management of DC Pork. Over the next few weeks, the employees will have the opportunity to examine the plan in detail, followed by a vote before the end of the month. Facts Employees have the freedom to decide how they want to finance the investment. They can choose between three models: o The immediate model, where the investment is deducted from their salary. o The mixed model, where they invest a portion of their pension, a portion of their Sunday/bank holiday supplement and a portion of the ‘free-choice’ scheme. o The pension model, where the entire investment is taken from the employee’s pension, and their regular pay is not affected. Regardless of the model chosen, each employee will be investing: 6.4% of their gross pay in 2014 4.7% in 2015 3.2% in 2016 and 1.8% in 2017 to protect Danish workplaces. If you choose the immediate model, it will cost you DKK 200-250 a week after tax for the first year. During the four-year period, employees choose to invest any pay increases negotiated as part of the collective bargaining process in the project.