Pay cut deal could set precedent

Agreements to take a pay cut in exchange for employers investing in their companies could become common practice among Danish businesses seeking a way to deal with high wages and low productivity, according to Flemming Ibsen, a labour market expert with the University of Aalborg.

Ibsen said the model could be useful in a number of industries, including tourism, hospitality and cleaning.

Ibsen’s comments came a day after Danish Crown and union representatives put forward an agreement that would see slaughterhouse workers accept pay cuts in exchange for the company investing an equal amount in domestic pig farming in order to promote increased production. 

Erhverv & Økonomi

SEE RELATED: Danish Crown closing in Esbjerg

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