ArcelorMittal confirmed on Monday the closure of its service centers in Reims and Denain, which employ a total of 136 people, unions said following a social and economic committee (CSE) in Reims.
According to the unions, 112 people are employed at the Reims site (Marne) and 24 in Denain (North). This is almost a quarter of the workforce in France of the ArcelorMittal Service Centers, a subsidiary specializing in the wholesale of metals and minerals to businesses. “The cessation of production is scheduled for June,” added the unions (CGT, FO, CFDT, CFE-CGC) in a press release. “For some support functions, departures are expected starting in April,” he adds. According to this source, 19 reclassifications will be proposed at other ArcelorMittal Service Center sites.
“Eight positions currently occupied by temporary staff will also be offered” within a location in Haute-Saône and “20 offers have been submitted” for reclassifications within other entities of the group, the statement continues.
A “sharp decline in activity”
ArcelorMittal indicated last week that the centers of Reims and Denain are suffering from a “sharp decline in activity” among its industrial and automotive customers, “which has accelerated in recent months”.
About a hundred employees mobilized at midday on Monday in front of the Reims site, upstream from the CSE, an AFP correspondent noted. Employees in work clothes lit a fire on a pallet, while an ArcelorMittal locomotive, its horn blazing, was moved onto the road, interrupting traffic.
The inter-union calls on employees of the eight French sites of the ArcelorMittal Service Centers to mobilize on Tuesday. In Denain they should be joined by around fifty members of the CGT of ArcelorMittal Dunkerque, where concern is growing after the announcements made in recent days by the group and the government.
ArcelorMittal called on the European Union on Monday to protect the competitiveness of European steel, putting its decarbonisation projects on the continent, which involve several billion euros of investments, in the balance. This includes in particular Dunkirk, where ArcelorMittal has decided “to postpone its investments in the decarbonisation of the site”, according to the Minister Delegate for Industry, Marc Ferracci.
ArcelorMittal employs “3,200 direct workers in Dunkirk, between 8,000 and 9,000 including indirect jobs,” according to Gaëtan Lecocq, general secretary of the CGT of ArcelorMittal Dunkirk. Benoît Jean-Leroy, CFDT delegate of ArcelorMittal Reims, denounces ArcelorMittal’s desire to “stay outside Europe in favor of the United States, India and Brazil”.
How can employees affected by job losses at ArcelorMittal best prepare for potential re-employment?
Engaging Interview Between Time.news Editor and Expert on ArcelorMittal Closures
Time.news Editor (TNE): Welcome to Time.news. Today, we are joined by Dr. Claire Dupont, an expert in industrial economics and labor market dynamics. Claire, thank you for being here.
Dr. Claire Dupont (CD): Thank you for having me. It’s a pleasure to discuss such an important issue.
TNE: Let’s dive straight in. ArcelorMittal has announced the closure of its service centers in Reims and Denain, affecting 136 employees. What are your initial thoughts on this news?
CD: This decision is quite concerning. The fact that nearly a quarter of ArcelorMittal’s workforce in France will be impacted highlights a significant shift in the company’s operations. It’s a troubling sign not only for the employees involved but also for the overall health of the manufacturing sector in the region.
TNE: Unions have noted a “sharp decline in activity” among industrial and automotive customers, which seems to have triggered this move. How do you interpret this decline?
CD: The automotive industry is particularly sensitive to economic fluctuations, and a decline in demand for vehicles directly translates to less need for materials and services provided by companies like ArcelorMittal. It appears they are adapting to reduced orders and shifting their focus. This could be an indicator of a broader trend in manufacturing, where companies are becoming more agile in response to market conditions.
TNE: That’s a great point. Unions are indicating that the cessation of production is expected by June, but some support roles may see departures as soon as April. What does this mean for the workforce?
CD: It reflects a challenging and often distressing reality for employees. The timeline for reductions can create uncertainty and anxiety. Moreover, the proposed reclassifications for only 19 employees might not be enough to cushion the impact for those who will be laid off. Transitioning to new roles can be difficult even under the best circumstances.
TNE: Speaking of transitions, the article mentioned that temporary staff may have their positions offered at a different site, and 20 offers have been submitted for reclassifications within the group. How effective are these measures in your view?
CD: While any opportunity for reclassification is a positive step, the scale of the layoffs greatly overshadows these measures. The offers might provide some support for the transitioning employees, but in times of economic uncertainty, workers need more than just placements; they also need job security and a clear pathway to stable employment.
TNE: Approximately a hundred employees mobilized in front of the Reims site in reaction to the closures. What role does employee mobilization play in such corporate decisions?
CD: Employee mobilization is crucial as it raises awareness about the impact of corporate decisions on individuals and communities. This kind of action can lead to negotiations with management and may pressure the company to consider alternatives to layoffs or to enhance support for those affected. It also fosters solidarity among workers and can help in organizing collective actions to advocate for their rights.
TNE: what do you see as the potential long-term implications of these closures for ArcelorMittal and the broader French manufacturing landscape?
CD: Long-term implications could include a reduced market presence for ArcelorMittal if they continue to cut back on operations in response to declining demands. For the French manufacturing sector, this situation illustrates the vulnerability of industries reliant on a few key sectors, like automotive. It also raises questions about workforce development, and the need for upskilling in response to changing market demands and emerging technologies.
TNE: Thank you, Claire, for your insights today. This situation certainly warrants close attention as it unfolds, and I appreciate your expertise on the implications.
CD: Thank you for the opportunity to discuss this pressing issue. It’s essential to keep the dialogue open about the future of work in our industries.