FrieslandCampina Changes Distribution, Cuts 43 Jobs

To respond to the changes at the supermarkets, it has decided to limit the distribution operations from Rotterdam to deliveries to supermarket distribution centres.

09/07/09 Royal FrieslandCampina will be changing the way it distributes fresh dairy products to supermarkets as more and more supermarket formulas now want to receive all products via their central distribution centres rather than via deliveries to individual supermarkets. This change will lead to the loss of 43 permanent jobs.

During September, a significant element of the direct deliveries to shops will disappear because a number of supermarket formulas are switching to central deliveries to distribution centres. FrieslandCampina is consequently changing the way it distributes its fresh dairy products so that it can continue to operate efficiently and competitively.

Currently, FrieslandCampina supplies individual supermarkets and distribution centres with fresh dairy products from its sites in Rotterdam and Eindhoven (the Netherlands). To respond to the changes at the supermarkets, it has decided to limit the distribution operations from Rotterdam to deliveries to supermarket distribution centres, and for individual shop and distribution deliveries to be made from Eindhoven. From mid-September, 43 permanent jobs in Rotterdam will consequently disappear. Most of the jobs lost will be in order intake, order picking and returned packaging processing.

FrieslandCampina’s activities in Rotterdam and Eindhoven produce fresh dairy products, such as milk, buttermilk, yoghurts and custards. There are currently 173 staff in Rotterdam and 168 in Eindhoven.

Social implications

Permanent staff are covered by FrieslandCampina’s redundancy plan. A suitable solution will be sought for these staff either inside or outside the company, including the possibility of asking them to work at other FrieslandCampina sites during the transitional period. FrieslandCampina’s Works Council has been consulted about the proposed job losses, and the trade unions have also been informed.