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Danish production wages increasing faster than abroad

Christian Wenande
December 5th, 2016


This article is more than 8 years old.

Confederation of Danish Industry warns of competition pitfalls

In case you were wondering, all manufacturing comes under production, but not vice versa (photo: DI)

For the fourth quarter in a row, the average production wage in Denmark has increased at a faster rate than abroad, according to new figures from the Confederation of Danish Employers (DA).

The new figures reveal that Danish wages in production are increasing by 2.2 percent annually – 0.7 percentage points higher than the average of 13 other nations.

Dansk Industri (DI), the confederation of Danish industry, is concerned.

“When wages increase faster in Denmark than in other nations, it impacts the ability of Danish companies to compete,” warned Steen Nielsen, the deputy head of DI.

“We had a period of four years when Danish wages increased less than other countries, but now it’s unfortunately going in the wrong direction.”

READ MORE: Elephant in the room: prospective foreign employees clueless about Denmark

Comparable to neighbours
Out of the 14 countries that are part of DA’s report, the greatest increase took place in Norway (a 3.6 percent increase), while Poland, the US and the UK also saw production wages increase at a greater rate than Denmark.

According to Nielsen, DI keeps close tabs on wage development in Denmark’s major trade partners Sweden and Germany.

“We should be equal or lower than these nations to avoid Danish companies losing orders and growth,” said Nielsen.

“But at the moment, German and Swedish wage growth is about half that of the Danish.”


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

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At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

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Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”