French groups Auchan and Michelin announce thousands of job cuts

French groups Auchan and Michelin announce thousands of job cuts

2024-11-05 13:24:00

Dark day on a social level. The Auchan and Michelin companies announced, Tuesday, November 5, social plans which will lead to the elimination of several thousand jobs in France, while the executive has insisted for several years on the reindustrialization of the country.

These announcements “are obviously extremely worrying”, reacted Tuesday the Minister of the Economy Antoine Armand.

The Prime Minister, Michel Barnier, said on Tuesday that he wanted to “know” what the Auchan and Michelin groups did “with the public money that we gave them”.

“I am not proud (…) of a policy that would destroy jobs, ever,” added the Prime Minister before the National Assembly, during the government questions session. “I am concerned to know what we did in these groups with the public money that we gave them. I want to know. And so we are going to ask questions and we will see if this money was well spent. or misused to learn lessons,” he explained.

The northern distributor Auchan presented to its staff representatives a draft social plan threatening a total of 2,389 jobs, notably through the closure of around ten stores, in an attempt to revive itself after several complicated exercises.

The Mulliez galaxy brand presented major employment protection plan (PSE) projects to representatives of its more than 53,000 employees in France.

“If the figures circulating are confirmed, this is the biggest social plan we have ever known at Auchan,” said Christophe Delay, FO national delegate in the parking lot in front of the hotel, before the start of the meeting.

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“It’s catastrophic. It’s going to leave many, many employees and families in difficulty. It’s shocking, scandalous,” said Franck Martineau, FO Auchan Retail union representative, after learning the precise figure of job cuts.

“The company will have to make very significant efforts to support its employees,” added Gilles Martin, CFDT Groupe Auchan-France delegate.

Auchan plans a weight loss cure at different levels. First, a pooling of support functions between different entities within its headquarters, for a total of 784 positions potentially affected.

A “more agile and autonomous” organization of its network of stores, for a possible total of 915 positions threatened, then, as well as the closure of three warehouses ensuring direct home delivery activity, in Paris, Lille and Lyon, which would result in 224 job cuts.

Closure of the Michelin sites in Cholet and Vannes

Finally, the closure of around ten stores, “whose sources of loss are such that it is difficult to see a solution in the short term”, according to a source close to management, for a total of 466 positions threatened . They are mainly located in three hypermarkets in Clermont-Ferrand Nord, Woippy and Bar-le-Duc, and in a supermarket in Aurillac.

A total of 2,389 positions are threatened. Management hopes to limit the number of redundancies through support for the employees concerned, retraining training, reclassification leave and voluntary departure plan. It also provides for the creation of 114 positions in “drive” activities and 205 within support functions.

Michelin, for its part, announced the closure before 2026 of its Cholet and Vannes sites, which employ 1,254 employees, calling into question the “collapse” of sales of tires for trucks and vans.

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In Vannes, “the announcement, made by the director, was greeted with great silence. Everyone blames the blow”, testified Éric Boisgard, employee since 2004 and former CGT union representative.

“For months, we have been asking ourselves questions,” underlined Romain Déchenau, CFDT union leader. “There were investments, work. They gave us hope, but it was window dressing.”

Employees blocked the site shortly after management’s announcements, which had planned to stop production until November 13 anyway.

“Either they keep our jobs, or they pay us until we retire,” said CGT secretary David Goubault into the microphone. “They have exploited us for years. Us, our parents for some, our children for others. We must not be satisfied with what they give us. It is not by going home and being gloomy that it will be discussed. We will have to start a fight,” he added.

The minister calls for an “exemplary” support plan

Michelin had already significantly reduced its footprint in France, its first country. With Poitiers, Toul, Joué-lès-Tours and La Roche-sur-Yon, it will have closed six factories in twenty years.

The Minister of Industry Marc Ferracci reacted by asking for “an exemplary support plan for employees and territories”.

Bibendum is not the only one who coughs. The sharp slowdown in the automobile market is causing serious difficulties for European equipment manufacturers and site closures are continuing. According to Michelin, these closures have become “inevitable” due to Asian competition in van and heavy goods vehicle tires, the sectors of the Cholet and Vannes factories.

See alsoReindustrialization: a road strewn with pitfalls

The CEO of Michelin also blamed a “slow deterioration in competitiveness” in Europe, particularly linked to energy costs, which prevents exports. The group is also preparing the closure of two factories in Germany by 2025.

The large Cholet factory employs 955 employees, who mainly manufacture small tires for light trucks, a segment in “significant decline” in Europe “with no prospect of recovery”, explains Michelin. The Vannes site has 299 employees who mainly produce metal cables for truck tires.

Michelin undertakes to “support each of the employees concerned with tailor-made solutions”, with job offers in other companies or within the group, or early retirement. He also promises to “participate in the creation of at least as many jobs as those eliminated” in the region, as he did in La Roche-sur-Yon, where 635 jobs were created in four years for 613 jobs eliminated, indicates the group.

Michelin also intends to propose to the unions a “Michelin Industrie France 2030” plan, which should allow, according to the company, “French sites and their employees to better plan for the future”.

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**Interview with Franck⁤ Martineau, Auchan Retail ‌Union Representative**

**Interviewer:** Thank you ⁣for ⁢joining us, Franck.⁤ The recent⁣ announcements from Auchan​ and Michelin regarding significant job cuts have raised ‍a lot ‍of concerns. Can you share your immediate thoughts on this situation?

**Franck Martineau:** ⁢Thank you for having me. Yes, it is⁣ truly a catastrophic situation. The proposed job cuts⁣ at Auchan will affect​ many employees and their families. It’s shocking and scandalous to think about the impact this will⁣ have ⁢on our communities. We’re looking at⁢ over 2,300 ‍jobs‍ at risk, and it is devastating news for us all.

**Interviewer:** The Prime Minister mentioned⁢ accountability regarding public funding provided to these companies. ​What’s your take on the use of public money in this context?

**Franck Martineau:** Absolutely, this ​is a critical​ issue. If we’ve given these companies public money to support their operations and ⁢they’re now ⁤turning around to close stores and lay off workers, we should have questions. We need transparency on how‌ these‌ funds have been utilized. It’s essential for the ⁣government to investigate this thoroughly to ensure that​ taxpayer money is not misused.

**Interviewer:**‌ What kind​ of support ⁢do you think is necessary⁤ for the employees affected by these layoffs?

**Franck Martineau:** The company must provide comprehensive support⁣ for employees, including retraining programs, job placement services, ‌and financial support for those who will lose‌ their jobs. ​We need to ensure that the ‌transition for these workers is as smooth ⁤as possible, and that they are not left without ⁢resources⁣ or prospects.

**Interviewer:** How ​have the workers responded to this‌ news within Auchan?

**Franck Martineau:** ‌The response has been one of anger and despair. Many employees feel betrayed after years‌ of hard work, only to face such a bleak outlook. Workers are understandably upset and are ⁤voicing their outrage.⁣ We need to stand united and push for a fair solution.

**Interviewer:** Looking ahead, what steps do ⁤you believe⁢ are‍ necessary⁣ for the future of Auchan?

**Franck Martineau:** We‌ need a radical change in⁤ strategy that ⁣puts employees first. ⁢The⁤ focus should ⁢be on revitalizing‌ the business⁢ in⁣ a way that ensures job security. The management needs to engage ​with the workforce, listen to their concerns, and develop a plan ​that respects ⁢their contributions.

**Interviewer:** Thank you for your insights, Franck. ​It’s ⁢clear that this is a crucial time ⁢for both Auchan ‌employees and the wider ​community.

**Franck Martineau:** Thank you for shedding light on this issue. We⁣ will keep fighting for our rights and for the futures of‌ our colleagues.

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