Employees accuse General Electric (GE) of having reduced the tax result of the Belfort gas turbine entity (GE EPF) through the transfer of wealth to subsidiaries in Switzerland or to the US state of Delaware, where taxation is more advantageous. A complaint was lodged on December 30 in the Belfort court for “fraud once morest the right to employee participation”, according to the employee’s lawyer, Maître Zerah.
Employees are calling for a catch-up in participation over the 2015-2020 period. “We start from the principle that participation allows employees to benefit from the fruits of the expansion of the company”, continues the lawyer adding: “however, the fruits of the economic activity of Belfort are sent to others. subsidiaries. What Belfort manufactures does not benefit the employees of the company ”.
One billion euros in estimated profits
According to Philippe Petitcolin, secretary of the CSE and member of the CFE-CGC, before 2015 (and the buyout of Alstom by GE) employees received an annual contribution corresponding to around two months’ salary. They haven’t touched anything since. The CSE estimates at around one billion euros the amount of profits located in tax havens to the detriment of GE EPF in recent years.
Conversely, General Electric responds that “GE’s inter-company transactions comply with all applicable international and national rules and regulations”. “They are well documented and regularly audited by various bodies, including auditors and tax authorities, in France and around the world,” adds GE.
Within three months, General Electric will have to present its responses to the summons. Complainants will also be able to respond. The lawyer plans to hold a trial in this case “within 12 to 18 months.”
