compelled us either to adjust the export prices quoted in these currencies, with the risk of pricing
ourselves out of the market, or to accept lower proceeds in guilders. In addition a floating currency,
when it regularly floats downward, always works to the disadvantage of the exporter, since it is
absolutely impossible to repeatedly quote new prices at short intervals.
The conversion of the earnings of our foreign subsidiaries at the higher rate of the revalued guilder
is immediately reflected in the consolidated Statement of Income. This particularly holds good with
regard to those countries where the local unit of currency is directly linked to the U.S. dollar or the
pound sterling.
The structure of our concern and our technical know-how enable us in many cases, in the longer
term, to offset the loss of sales arising from the level of costs in the Netherlands, as well as disadvan
tageous currency developments and protectionist measures elsewhere, completely or largely by
means of local production.
The Selective Investment Regulations Bill will certainly not contribute towards improving the
business climate in the Netherlands. The resulting additional levy with which a substantial part
of Netherlands industry will be confronted will undoubtedly have a detrimental effect on the level
of investment and thus on employment.
Until recently it was still possible to make a clear distinction between the national, i.e. purely
Netherlands market, on the one hand, and on the other our activities with regard to participations
in breweries in Europe and the activities in the field of exports to other European countries.
Mainly through the progress of European integration this picture has obviously changed. This
development has prompted us to adapt the organizational structure of the concern with effect from
October i, 1973, in such a way that an integrated European policy can be followed. For that
purpose there has been an amalgamation of the activities in Benelux and those in the rest of Europe.
PERSONNEL
We have once again paid great attention this year to the social policy within our enterprise. In
order to ensure the application of this policy, the personnel departments were reorganiz.ed.
The negotiations with the three trade unions on the Heineken Collective Labour Agreement for
1973 proceeded considerably more laboriously than in previous years. The trade unions adhered un
conditionally to a number of demands with regard to an incomes policy, which we had to reject as
unjustifiable. Fundamental differences of opinion consequently became evident. When these
differences appeared to be unbridgeable, two trade unions requested their members in our breweries
to stop work in several selected departments. As a result of this, production in the establishments
concerned was at a standstill for one week. After agreement had been reached centrally between
organizations of employers and workers, the 1973 Collective Labour Agreement was finally signed.
On the basis of the present law, new regulations were drafted for our Staff Councils, which were
subsequently elected and installed. It is intended that in due course a Central Staff Council will also
be set up in our concern.
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