Vion makes compromises in German wage dispute

Vion Germany and trade union NGG have reached an agreement in the wage dispute of slaughterhouse employees. With the agreement, Vion will see wage costs rise considerably.

Employees in the northern regions will see their wages increase by a total of 13,5%. In the south of Germany the wage increase is 11%. The new collective labor agreement will take effect from the new month, but the increase will take place in stages until the end of 2024. Vion previously provided a one-off inflation compensation of €200 per employee, because the negotiations took a long time.

The negotiations ultimately lasted months and even led to strikes at the end of August. Vion reportedly offered a 6,5% wage increase, while the union demanded 15%. The outcome indicates that Vion has added quite a bit of water to the wine. COO David de Camp of Vion Beef speaks of a fair offer and is happy that an agreement is on the table.

For Vion, the wage sacrifice in Germany creates an additional barrier to getting back into the green figures. Last year, Vion made a heavy loss, mainly due to problems on the German market.

Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.

w.baan@boerenbusiness. Nl

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