Dairy sector is facing strikes

The Dutch Dairy Organization (NZO) and the unions have been bickering about a new collective labor agreement for some time now. The last final offer of 8% was firmly rejected by the FNV and the CNV. The NZO then ignored the ultimatum, after which the unions announced strikes. Yesterday, work was stopped for 24 hours at a FrieslandCampina cheese factory in Marum, Groningen. This is the only strike so far, but the unions claim that other factories will soon follow suit.

Strikes at Albert Heijn
Separately, the dairy sector is also indirectly involved in strikes at Albert Heijn. This is a point of concern, especially for A-ware, as they are the 'main supplier' to the wholesaler. At the end of last week, according to A-ware, it was not yet necessary to make adjustments to the usual method of supplying Albert Heijn's distribution centers. "Should this situation change, we will of course look for appropriate solutions in consultation with Albert Heijn," the statement said. In the meantime, the shelves at Albert Heijn are becoming increasingly empty, and dairy products are also almost sold out in some branches. A solution to the wage dispute at Albert Heijn is not yet in sight.

The stalemate between the unions and the dairy sector appears likely to continue for a while. The NZO, through acting director René van Buitenen, has announced that the ball is in the unions' court. In any case, the last final offer of 8% is not negotiable, he says firmly. The NZO probably feels the hot breath of its supporters on its neck. The dairy companies leave the negotiations to the NZO, but off the record some say that they find the wage demands of the unions far too strict. The idea is that such an increase in wages will also increase the cost price further, worsening the competitive position on the world market.

In addition, the wind on the dairy market is currently clearly blowing from a different direction. Due to high inflation, dairy sales are slowing down, which means that stocks of commodities such as butter and milk powder are currently increasing rapidly. Van Buitenen also raises these arguments and says that corporate profits are under pressure. The NZO also believes that compensating purchasing power is also a political matter. Moreover, the collective labor agreement for the dairy sector is already above average, he indicates.

Peak season just around the corner
In recent decades, strikes at dairy companies were rare, but the sector obviously doesn't buy anything from that now. In any case, striking employees are a bad experience for the sector. With the peak of milk production approaching, processing capacity will be desperately needed in the coming weeks. After all, the supply figures in the Netherlands are considerably ahead of previous years. With multiple locations, FrieslandCampina is still reasonably flexible in locating the milk elsewhere, but strikes at other manufacturers are likely to be more severe. The question is to what extent factory employees want to go along with the fighting spirit of the unions.