The management of the supermarket chain Delhaize announced this Tuesday morning during an extraordinary works council its desire to have all the stores still integrated, that is 128 out of 764, under franchise, announced several union sources. The group has meanwhile confirmed the information by press release.
The only option to keep investing in a sustainable future
According to management, “this is the only option to continue investing in a sustainable future for Delhaize”. It ensures that no store employee will lose either his job or his salary conditions, on the other hand “the gradual transition from self-managed supermarkets to independent stores will lead to a gradual reduction in the number of functions within the head office”.
According to management, affiliated stores “have seen their market share grow steadily over the past few years”, while “Own-operated supermarkets (…) have seen their profitability and market share decline over the same period”. She believes that by choosing a single store model, Delhaize will be able to adapt flexibly to a rapidly changing market.
Spontaneous work stoppages in nearly 100 stores
Following this announcement, the staff of many Delhaize department stores decided to go on strike on Tuesday morning. Around 11 a.m., 95 stores had closed, according to the spokesperson for the Lion brand. Others should follow, say union representatives.
“It’s shocking, it’s hard”, reacted to the exit of the works council the secretary of the ACLVB (liberal union), Wilson Wellens. The franchise of 128 stores is much worse news than expected, he believes. Because even if the management affirms that the workers will keep their working conditions and wages, they will change the joint committee and this brings its share of uncertainties for the future.
The strike might continue until Saturday
The strike might continue on Wednesday but not everywhere according to the unions. Stakes will be managed on a case-by-case basis. You will therefore have to go and check on site if your store is open. But in some stores, we will remain closed until Saturday as the anger is strong. The unions promise to cover the strikers. According to a union representative, the battle with management might be very long. It might last for months. A new works council is scheduled for next week.
It’s incredible
On the side of the socialist and Christian unions, there are also questions regarding the possibility of finding buyers for all these stores. “Putting 128 stores on the market at once is mind-blowing,” reports Edwin Muller for the ACV Puls.
For Manuel Gonzalez, permanent CNE, it is also a “very bad news: “They made it clear that their intention was to move all the integrated into the franchise model. All the stores in the park in Belgium, that is to say 128 stores”.
We can obviously expect layoffs
And according to the president of Setca, this decision may well have an impact on workers. “We can obviously expect layoffs. We can expect to have salary conditions revised downwards. We can expect non-renewals of precarious contracts. We can also expect, on the contrary, to more precariousness, that is to say to see the stores invaded by students who are less expensive than ordinary staff.A questioning of employment in central services, in depots.First declarations in the Delhaize press, it seems quite logical that we are moving towards more flexibility, more precariousness and more cost reductions”, anticipates with bitterness Myriam Delmée.
She believes that management is a “a bunch of totally incompetent people” who made this announcement “two minutes” without any space for negotiations or simply for questions, even though the company “had once more made statements in the press recently saying that there would be no franchise”.
The management convinced to find buyers
For its part, the management of the brand is absolutely certain to find buyers for all the stores it wants to franchise. “There is not the slightest doubt” on the issue, according to CEO Xavier Piesvaux.
These 128 stores currently employ 9,000 people. Delhaize has not set a deadline for the franchise. The information and consultation phase will begin next Tuesday. Management undertakes to answer all questions from union representatives, according to Mr. Piesvaux. He says he is convinced that all the stores will find takers. “We have a successful franchise store model. More than 80% of our stores are managed in this way. These stores perform well and gain market share, which is a good guarantee for the future for potential buyers.”
He is thinking in particular of independent managers who would like to extend their network or managers of integrated stores who would like to try the adventure.
