AMSTERDAM -(Dow Jones)- The works council of Merck & Co. Inc.'s (MRK) Dutch research and development operations is taking the U.S. pharmaceutical firm to court over planned job cuts in the Netherlands, a works council spokesman said Friday, confirming earlier media reports.
The works council said it hasn't been consulted on the reorganization of Merck's Dutch operations, which will see R&D sites shut down and 2,175 of a total 4,500 workers laid off, even though this is compulsory under Dutch law.
The R&D sites will be shut down completely, while a production facility will remain operational.
Works council member Iris Van Dinther said a court in Amsterdam will deal with the matter on Sept. 2.
"We have agreed with the works council to send the decisions regarding the job losses after the summer, and we are fully aware of the Dutch legal requirements and comply with that," Merck said in a written statement.
The works council is seeking to block the reorganization and is asking the court to prevent Merck from selling any equipment and other assets while legal procedure is ongoing.
Merck became the owner of the sites after its takeover of Schering-Plough in November last year in a $49.6 billion deal. Schering-Plough acquired them in 2007 from Akzo Nobel NV (AKZA.AE).
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