Fonterra scraps bonuses and freezes wages

The New Zealand dairy cooperative Fonterra is said to have frozen the salaries of approximately 7.000 employees and also cut bonuses, Reuters news agency reported after perusing an internal email. The New Zealand cooperative is expected to report its biggest annual loss ever next week.

The internal email of Tuesday, September 3, shows that employees who earn more than $100.000 per year will not have to count on a pay increase this year. “This is a difficult decision, but it is also the right one,” said Miles Hurrell, the company's CEO. About 7.000 employees will be affected by this measure, a Fonterra spokesperson confirmed Reuters† In total, about 22.000 people work at Fonterra.

In addition, Hurrell informs in the email that certain bonuses, including for the sellers, will not be paid this year. “This way we can reset the company to a position where we can be proud of our financial resultsIncidentally, the director emphasizes that all employees who earn less than $100.000 annually will not be affected by the measures.

* This article is about New Zealand dollars.

Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

k.baker @boerenbusiness. Nl

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