Organon is right to leave the Netherlands !

In times of recession, business transformation an emigration are used to look for cost efficiencies. just take a look at an average Dutch company, and what will stick out ? Stop guessing, it is the labour cost ! In order to provide an employee with a net income of EUR 3,000 per month (try to raise a family of 4 with that amount constitutes a challenge as such!), the employer will have to put in some EUR 6,000! This is the result of the exorbitant high income tax the Dutch government charges to pay for all their cultural and development expenses.
Dutch labour is just too expensive, despite whatever knowledge we claim to have, moving the business East just pays out economically.

By Sjaak | August 2, 2010 3:37 PM

@sjaak,

First of all Organon did not leave the Netherlands but they got bought, and Merck USA decided to move the development to the USA. The former Organon had nothing to say in this decision. Second, what do you think the costs are over there? If it got moved to Eastern Europe or Asia your comment would have made sense, not now...

By Napoleon | August 3, 2010 10:24 PM

@ Napoleon
You are right about the direction of the move as regards Organon. On the other hand, at the current NL tax rates, the labour cost in the US will not be be much higher, Merck probably still saving cost on merging two R&D centers.

Also, my comment was meant in a broader perspective than just Organon's: many moves to the east can be seen as a result of NL labour cost and rigid labour law.

By Sjaak | August 4, 2010 11:34 AM