Politics
After labour talks collapse, government threatens cuts
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June 8th, 2012
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This article is more than 12 years old.
Negotiations to increase working hours have been scuttled, leaving spending cuts as the only option for a balanced budget
The government’s hope of generating an additional 4 billion kroner in tax revenue has been dashed after trade union Dansk Metal declared today it would not accept fewer bank holidays or reduced holiday times, a key element of the plan.
“We could have found the 4 billion kroner”, Bjarne Corydon, the finance minister, told the press, “but that opportunity is gone now.”
Negotiations between the government, labour officials and representatives from management got underway at the end of May, but before they even had a chance to gather steam Dansk Metal announced its unconditional opposition to longer working hours.
Corydon had initially sought to continue the talks without the Dansk Metal, but chose instead to scuttle the negoations entirely.
He described Dansk Metal’s move as “surprising” and said the government would now be required to harvest the additional funding by cutting spending.
“We’re going to continue to follow responsible economic policies. I can assure you that we’re not going to spend more money than we take in.”
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