Massive savings, structural changes and a new settlement concept are the cornerstones of a new proposal from Danish Crown which, over the next six to 18 months, will ensure the Group’s competitiveness and supplies of raw materials. - At the moment, the biggest threat to the company’s competitiveness is falling supplies of raw materials. The overall plan therefore includes both massive cost cuts and a new and more up-todate settlement concept for the company’s owners, explains Danish Crown’s CEO, Kjeld Johannesen.
Under the heading DC Future, Danish Crown is presenting an overall plan for the Group to ensure its competitiveness.
Payroll costs
The plan also includes a marked call for action on the part of politicians as well as setting out requirements in terms of developments in Danish payroll costs. - The very high payroll costs is a decisive factor when it comes to our competitiveness as an international business in Denmark. It is therefore absolutely essential that together with our employees we reduce payroll costs by 20 per cent. This will require a fresh approach on the part of both parties, says Kjeld Johannesen.
Call to politicians
With the overall plan, Danish Crown is also sending a clear signal to politicians that framework conditions need to be changed if heavy export businesses such as food production companies are to remain in Denmark. - The latest pig count means that, within the next few weeks, we will once again be announcing job losses in Denmark. This is not a tenable situation, and this is what we are now trying to turn round through huge efforts in the company, but it will not happen without everyone’s support, says Kjeld Johannesen.