Merck Postpones Dutch Closures
U.S. drugmaker Merck postponed on Thursday the planned closures of some Dutch operations announced in July while it negotiates with executives and workers on potential alternatives. The last-minute deal averts a court hearing that had been scheduled for Thursday afternoon, at which employees of the Dutch unit, formerly called Organon, would have attempted to block the closures.
Merck said the sides had agreed to negotiate "jointly in good faith" on alternatives for business development at the Organon sites, taking into account concerns around local employment, knowledge development and Merck's economic needs.
If no deal is reached by Dec. 31, Merck said, the sides will go back to considering their legal options. In the meantime, Thursday's court case has been postponed to January.
Merck said in July it would shut eight research sites, including three in the Netherlands, as part of its restructuring programme after its merger with Schering-Plough. It ultimately plans to cut up to 15,000 jobs worldwide and to save up to $3.5 billion by 2012.
The Dutch closures were expected cost up to 2,000 people their jobs, a blow substantial enough that the government got involved. After an employee protest outside parliament in The Hague, government officials said they would urge Merck to find another solution for Organon.
