HKScan hit with major strike at its meat processing plant in Estonia

Although only 25 slaughter-line employees were on strike out of 785 workers at the plant, it affected the operation of the entire business, HKScan said in a statement on its website.

“This kind of work stoppage was affecting not only production, but also the rest of our employees, farmers, customers and consumers,”​ said Anne Mere, executive vice-president of market area Baltics at HKScan.

Jaan-Hendrik Toomel, head of communications at the Confederation of Estonian Trade Unions, told GlobalMeatNews​ that more than 75% of workers on the slaughterhouse’s main line were on strike, adding that the capacity of the slaughtering line had fallen every day as a result.

“The slaughterhouse is holding the main strike and other departments of HKScan Estonia are ready to go out on strike in solidarity,”​ he said.

Low wages​

Employees at the Rakvere meat processing plant have demanded an immediate raise of 16% in basic wages paid at the slaughter unit and a second 16% raise starting on 1 July 2018.

This would put the average wage for the affected workers at €1,195 per month from 1 July, although this would still be lower than the average salary in Estonia of €1,250 before taxation, according to Toomel.

The strikers have claimed their wages have not increased in 10 years, while in some cases they were even lowered by the company’s management, they said.

However, HKScan claimed the total compensation for the slaughterhouse employees was 19% above the comparable market median and that, between 2013 and 2016, the total amount paid to striking employees had increased by an average of 6% per year.

“The salary increase of only one department does not support a transparent compensation system, developed on equal grounds, and would not be fair to the other employees of the company​,” said Mere.

The communications department of HKScan has not provided any further details in response to a request from GlobalMeatNews​.

New round​

This is the second strike at the Rakvere plant in the past six months. The first one began in October 2017 on similar grounds.

“At the time the strikers were not unionised and, they had not held proper negotiations with the employer, so the strike could not be considered legal,”​ Toomel admitted.

HKScan is running the Rakvere plant and poultry producer Tallegg in Estonia and is believed to be one of the main food producers in the country. It is not known whether the conflict could have any real impact on the domestic meat market, or bring any losses to HKScan.

Mere said the Rakvere plant would continue to operate despite the strike and that everything would be done to ensure that supply to customers was as smooth as possible.

HKScan Group posted a net loss of €18 million (m) in 2017 on a revenue of €1.8bn. HKScan Estonia earned a net profit of €1.3m in 2016, compared with the €366,000 of net loss it generated the year before. The company has not yet revealed the financial performance of HKScan Estonia in 2017.