A strike at Belgium’s Clarebout Potatoes, which is in the throes of a takeover by US-based JR Simplot, has entered a fifth day.
The industrial action across family-owned Clarebout’s four production plants – three in Belgium and one in France – began last Thursday (2 October) in a dispute over bonuses related to the JR Simplot acquisition.
According to the ACV union in Belgium, talks between the workers’ representative and Nieuwkerke-headquartered Clarebout started on 30 September in a request for a bonus payment for all staff.
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Lars Decock, secretary for the union, told Just Food via a statement that the application for a bonus payment was prompted by media reports that Clarebout’s CEO Jan Clarebout was due to “receive a substantial amount” from the sale to JR Simplot.
That deal was announced in July and is expected to be signed off by the end of the year, bringing together “two market leaders” in the frozen potato products sector, according to a statement at the time.
Financial terms were not disclosed.
Decock added that Clarebout initially refused to grant any bonus but after several rounds of negotiations then provided a final offer of €500 ($584) for each staff member.
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By GlobalData“Given the significant sale amount (estimated between €1-4bn according to Belgian media), this offer was deemed insufficient by the staff. As a result, a strike was initiated. We have informed the employer that we are willing to return to the negotiating table,” Decock added.
Meanwhile, Raphael Tassart, a spokesperson for Clarebout, acknowledged the €500 offered to all the company’s 3,000 employees.
Tassart clarified that there would be no impact on staff numbers from the sale to JR Simplot and also suggested that employee numbers may well increase.
“This bonus is in addition to other long-term salary arrangements. Although this is an exceptional and extra-legal bonus – when a company is sold, it is quite rare for employees to be offered a form of profit-sharing in the sale – staff representatives are demanding a larger sum,” Tassart explained.
“For now, the strike is impacting all sites. The company has adjusted its production. At this time, the unions have not made any requests for an official meeting to discuss this with management.”
Decock said the union was waiting for a response from Clarebout as the strikes continue, providing estimates of the staff numbers at each site.
Nieuwkerke (500 employees), the factory in Waasten (1,500 employees), the Mydibell factory in Mouscron (500), and the factory in Dunkirk, France (500).
“Without any response from the employer, the strike will continue,” Decock said.
Private-label manufacturer Clarebout supplies the retail, catering and food-manufacturing sectors.
Announcing the takeover in July, JR Simplot said the combined group would have 23 production sites and that the deal “provides for the maintenance, and even expansion, of Clarebout Potatoes’ assets – staff and production sites – on the European continent”.
Simplot Foods, the group’s food division, sells potato products under various brands such as Simplot RoastWorks, Simplot Conquest Fries and Simplot Blue Ribbon Fries.
Clarebout’s CEO said at the time: “We could have continued on our own, but the economic reality of the world, and a form of common sense, led us to come together. It is a choice for the future and a sustainable future.”
