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BREXIT

Danish Crown announces large-scale redundancies in United Kingdom

Meat producer Danish Crown has announced that it needs to make savings of 350 million kroner (47 million euros) and will therefore cut 300-400 jobs.

Danish Crown announces large-scale redundancies in United Kingdom
File photo: Henning Bagger/Ritzau Scanpix

Most of the job losses will be in the United Kingdom, and the impact on employees in Denmark will be “relatively limited,” the company said.

“We have, in recent months, won several important contracts in the United Kingdom, so things are moving in the right direction sales-wise,” CEO Jais Valeur said via a press statement on Wednesday.

“But that does not change the fact that our costs are still too high, so job losses will occur as part of a thorough reorganisation of [British daughter company] Tulip Ltd,” Valeur added.

Brexit is one of a number of factors contributing to challenges faced by the company, Valeur told Ritzau on Wednesday.

“There are difficulties on the British market. Last week, Tesco, the largest supermarket (in the UK), announced 9,000 job losses. When our customers are forced to do that, it tells you something about the pressure we as suppliers are also feeling,” he said.

Consumer confidence in the UK has fallen as a direct result of uncertainty over the country’s impending exit from the European Union, according to the Danish Crown CEO.

A no-deal Brexit, in which the UK would leave the union on March 29th without a withdrawal agreement, is still a possible outcome. That could delay traffic between the UK and the EU in the initial period following Brexit, resulting in logistical chaos for importers and exporters.

Valeur said reduced consumer confidence in the UK was a “direct derivative of Brexit”.

“We are just as confused as consumers about what will happen [with Brexit] and are looking on with amazement at what’s going on,” he said.

“We send 33,000 containers or transport vehicles to the United Kingdom every year. If there is no deal, each one will need customs documents and inspection by veterinarians. That will require a completely incredible amount of documents,” the CEO told Ritzau.

The Danish Crown boss said he believed London would have to come to some form of agreement regarding food imports.

“Great Britain has not been self-sufficient on food for 100 years, and around 40 percent of the food they eat comes from abroad.

“So I believe that some solutions will be found, so Danish products can reach the market. But it will be more expensive and more complicated than it is today,” he said.

The announcement follows results from the first quarter of the company’s current business year, which showed signs of difficulties on a number of fronts, not least British daughter company Tulip Ltd.

Danish Crown is also facing challenges in a number of other markets, related to tough competition and difficulty meeting targets, according to Tuesday’s statement.

“Right now, we don’t have the competitive strength we are looking for in relation to the EU index,” Valeur said.

“That is, first and foremost, due to our own difficulties, particularly in Great Britain, but the tough battle over pork in Germany and growth of Spanish producers have not made things easier,” he continued.

Additionally, prices are being kept low by fears over the spread of African swine flu, he also noted.

Danish Crown employs around 29,000 people globally, of which 9,000 are in Denmark and 7,000 in the UK.

READ ALSO: No-deal Brexit could cost Denmark billions, companies looking at alternative markets: ministry

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BREXIT

What Labour’s UK election win could mean for Brits in Europe

The UK's new Prime Minister Keir Starmer has swept into Downing Street in a landslide victory. But how will a Labour government affect Brits in Europe? And what, if anything, will the former 'Remainer' do about Brexit?

What Labour's UK election win could mean for Brits in Europe

The Labour party won a landslide victory in the UK general election on Thursday, bringing an end to 14 years of Conservative party rule.

Labour majority

The new Labour government enters office at a time of high political and economic uncertainty, stagnant growth, public services pushed to breaking point, and Britain’s international reputation tarnished after the Conservative government staggered from calamity to calamity in recent years.

Leading up to the election, the question was not if Labour would win but when, and how big the majority will be. In the end Labour won one of the biggest landslides in British political history, taking 412 seats. 

What the new Labour government does (or more likely, doesn’t) do with its massive majority could have big implications on life for approximately 1.3 million UK nationals living throughout the EU.

Writing exclusively for The Local after his party’s election win, the UK’s new Foreign Secretary David Lammy said Britain would reset its ties with the EU.

“As the new British Foreign Secretary, with our Prime Minister Keir Starmer, this government will reset relations with Europe as a reliable partner, a dependable ally and a good neighbour.”

Lammy added: “We must do more to champion the ties between our people and our culture. Holidays, family ties, school and student exchanges, the arts, and sport (I was of course cheering on England in the Euros…). Thanks to this, our citizens benefit from the rich diversity of our continent.

“If we are to fulfil our ambitions for a reset, we must also improve Britain’s relationship with the European Union… I look forward to seeing Britain reconnect with our European neighbours in the years ahead.”

For many Brits in Europe (as well as those in the UK), the elephant in the room is, of course, Brexit.

Starmer and Labour’s Brexit policy

But what, if anything, does a Labour government actually mean for Brexit and Brits in Europe?

For many, Starmer first came to national prominence in his role as shadow Brexit secretary under former Labour leader Jeremy Corbyn. He was then an ardent Remainer, and largely responsible for Labour’s eventual position on a second referendum, demanding that the British people deserve a “confirmatory vote” on Europe.

How things have changed. In the build-up to the election Starmer categorically ruled out the idea of rejoining the single market and the customs union, let alone a second referendum on rejoining the EU. He has, however, stated that he will take steps to ease trade barriers and sign a bolstered security agreement with Brussels.

Asked recently by the British press if he could envision Britain re-entering the EU in his lifetime, Starmer was unequivocal. “No. I don’t think that that is going to happen,” he said. “I’ve been really clear about not rejoining the EU, the single market or the customs union – or a return to freedom of movement.”

These comments sparked a certain amount of anger and disappointment among many Brits in Europe. Although they were made before the actual election with Starmer still in campaign mode.

In essence, despite his Remain-backing past, Starmer’s position seems to be that Labour can improve the Brexit deal signed by the Johnson government in January 2020, rather than tear it up or try and force the UK back into the EU on new terms.

For those hoping to rejoin the EU one day, this will be disappointing. Brexit became something of an internal psychodrama for the Conservative party, yet Starmer’s Labour appear to have accepted it as the political framework and don’t dare reopen the debate.

So for the hundreds of thousands of UK nationals living in Europe there will be no return of their freedom of movement and EU citizenship anytime soon.

So will Labour change anything for Brits in Europe?

Labour has been tight-lipped on what its Brexit policy will actually mean in practical terms, but of the few concrete proposals it has outlined so far there are plans to revamp a veterinary deal on animal products to ease on paperwork and border checks, as well as making it easier for qualifications to be recognised abroad.

Labour has also promised to enshrine rights to consular assistance for UK citizens abroad in cases of human rights violations, and to make reciprocal arrangements for touring artists and musicians moving between the UK and EU.

In terms of broad strokes commitments, however, it’s hardly ambitious.

Some economic experts have suggested that rejoining the single market or customs union would significantly boost the British economy, so some hold out hope that the political and economic reality may force the new Labour government to reconsider its position on Europe somewhere down the line.

What about the roll out of the the EU’s new EES border system?

Britons travelling to Europe will face likely travel disruption when the EU finally rolls out its new biometric border checks known as Entry/Exit System or just EES.

There had been much talk of the UK government trying to get the rollout delayed in a bid to avoid or at least postpone the likely chaos. Could Keir Starmer’s government put pressure on the EU to delay EES?

Well the main point to note is that it’s up to the EU when it rolls out EES, not the UK government. It is due to be launched in October or November although an exact date has not been announced. However if there is any delay it will likely be because of concerns on the EU side rather than because of pressure from the UK.

READ ALSO: When will Europe’s new EES passport system be launched?

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