Business news in Brief: Transport firm dropped after poor working conditions revealed

In other news, Novo struggles with US market, Arla continue to lay off employees and Danske Bank profits decrease by 50 percent.

A recent investigation by the trade union 3F revealed that the Padborg-based Kurt Beier Transport company was only paying its Philippine and Sri Lankan drivers 15-20 kroner per hour and accomodating them in containers.

As a result, several Danish companies have dropped the firm. So far, Arla, Jysk, Leman and the Nagel Group have severed all business ties with Kurt Beier Transport, reports DR Nyheder.

Although the union has criticised the wage rates they may not necessarily be illegal, says Jonas Felbo-Kolding, an employment conditions researcher from the University of Copenhagen.

The drivers are employed through a daughter company in Poland and have their work and residence permits through this company. EU rules allow lorries from one EU country to cross borders into others and when they have delivered their cargo, they can take three internal journeys in a seven-day period under the pay and working conditions regulations in force in the country where the lorry is based.

Novo struggles with US market
Novo Nordisk announced they will reduce staff by 1,300 before the end of the year. This is in response to a 2 percent fall in quarterly revenue. The decrease is in part due to an appreciation of the dollar since April. The US is Novo’s largest market, so the change in exchange rate could prove difficult for the pharmaceutical giant. Novo’s sales amounted to 82.1 billion kroner so far in 2018.

Arla Foods lay off 140 to increase efficiency
Danish dairy company is set to fire 140 employees, the majority of which will come from their headquarters in Aarhus.  The restructuring is part of a 3-year savings plan that they hope will bring efficiency improvements and savings of 400 million Euros. Since the savings plan was announced, 195 have lost their jobs.

Europes hot summer sells beer
Carlsberg increased its 2018 growth expectations to 10-11 percent in operating profit. In the third quarter of 2018, Carlsberg made 17.6 billion kroner in profits, a 9 percent increase when compared to the same period last year. This is primarily due to greater sales in western Europe over the hot summer and strong demand from Asian markets.

Danske Bank profits fall by 50 percent in Q3
The Danske Bank money-laundering scandal has severely dented profits resulting in a 50 percent drop compared to the same period last year. Q3 profits only amounted to 2.5 billion kroner. Additionally, the scandal has caused 1,500 customers to leave the bank. Although this is only a small proportion of the bank’s 2 million customers, the exodus reflects the bank’s problem when it comes to market image.

Danish green energy increases profits
Ørsted announced an operating profit of 10.8 billion kroner in the first nine months of 2018. This was 14 percent higher than over the same period last year. The increase was in part due to a 32 percent increase in operating profit from the production of wind farms. Additionally, Ørsted increased its business performance expectations by 0.5 billion kroner.

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