Vencorex, Michelin or Auchan… “Every day the list gets longer”. The general secretary of the CGT, Sophie Binet, announced a “day of convergence of all struggles for employment” in France on 12 December.
The latter had gone on Thursday to Pont-de-Claix, south of Grenoble, to support the striking employees of the chemical company in receivership Vencorex, denouncing “an organized failure” and asking for state intervention.
Only 25 positions retained
“Until 2022 everything was fine, the company was profitable,” he said in front of several hundred employees during the strike picket organized two weeks ago in front of the company headquarters in Pont-de-Claix, south of Grenoble. “Vencorex is first and foremost the story of an organized bankruptcy (…). The plan was well oiled”, she was indignant, denouncing “an unfair competition operation organized by the Chinese state to destabilize our industry”.
Specializing in the production of isocyanates, substances used mainly in industrial paints and varnishes, Vencorex was placed into receivership on 10 September, at the request of its shareholder, the Thai petrochemical group PTT GC.
Only one takeover offer has been made, that of the Chinese Wanhua, Vencorex’s main competitor, which plans to retain only 25 of its 450 jobs, for one million euros. “We have governments that bring the wolf into the fold,” lamented Sophie Binet. “Almost 5 thousand jobs are at stake here, the production you carry out is a strategic issue for the entire country,” he underlined, citing the nuclear or aerospace sector. “The state must immediately organize a round table to find a buyer,” he said.
“A truly disastrous scenario”
Lyon’s commercial court is due to rule on Thursday on a possible extension until March 10 of the observation period for the Grenoble company, which would give it more time to find buyers.
If, in the worst case scenario, no one comes forward, the state will have to resort to “temporary nationalisation”, as it did recently in Saint-Nazaire, said Sophie Binet. “What is happening here in this area south of Grenoble is very serious. The employees, the inhabitants of this area are experiencing a truly disastrous scenario,” the mayor of Pont-de-Claix Christophe Ferrari said into the microphone.
The government must “wake up and do everything to demand from Arkema”, of which the State is a shareholder, “the purchase of Vencorex’s assets which will allow its survival”, he added. The chemical giant said last week it was not interested.
For Sophie Binet, the Vencorex situation is “representative but unfortunately not isolated”. The CGT identified “more than 180 redundancy plans across France affecting more than 100,000 direct and indirect jobs, mainly in industry”. A figure “at a minimum since every day the list gets longer”, he observed, calling for a “day of convergence of all the struggles for employment” to be held on 12 December in France.
Interview between Time.news Editor and Labor Expert
Editor: Good afternoon, and welcome to Time.news. Today, we’re delving into a critical issue facing the French workforce, particularly surrounding the recent struggles of Vencorex, a chemical company, and the broader implications for employment in France. We’re joined by labor expert Dr. Elise Roux, who has been closely following the events and developments. Thank you for being here, Dr. Roux.
Dr. Roux: Thank you for having me. It’s important we discuss these developments, as they affect thousands of workers and the industry as a whole.
Editor: Absolutely, it seems that there has been a dramatic shift for many employees at Vencorex. Can you give us some insight into what led to the company’s current situation?
Dr. Roux: Certainly. Vencorex, which specializes in producing isocyanates for industrial paints and varnishes, was doing well until 2022. However, it recently entered receivership after its shareholder, the Thai petrochemical group PTT GC, initiated the process. Sophie Binet from the CGT, the French labor union, described this as an “organized bankruptcy”, suggesting that there were issues of unfair competition, particularly from state-supported entities abroad, like those from China.
Editor: Binet’s comments highlight a critical perspective regarding the competition faced by French industries. What do you believe are the broader implications of this situation for French employment?
Dr. Roux: The implications are indeed significant. We’re talking about nearly 5,000 jobs at stake within Vencorex alone. With only one takeover offer on the table from Wanhua, a competitor, which plans to retain a mere 25 jobs, the local community and economy are facing a truly disastrous scenario. Sophie Binet emphasizes that the production Vencorex engages in is strategic for France, linking it to crucial sectors like nuclear and aerospace. If we aren’t proactive in saving these jobs, we could see a broader collapse in sectors crucial to national security and economic stability.
Editor: There’s talk of a “day of convergence of all struggles for employment” on December 12. How do you see this day playing out?
Dr. Roux: I believe it will serve as a powerful platform to unite various labor forces and draw significant attention to the issues at hand. The idea is to rally support not just for the employees of Vencorex but for all workers affected by similar circumstances across different industries. This event will likely underscore the demand for government intervention—specifically, calls for a round table to facilitate discussions on finding potential buyers or alternatives for sustaining these jobs.
Editor: It sounds like a pivotal moment for workers in France. What actions do you think the government should take to address these concerns?
Dr. Roux: The government needs to take a more active role in safeguarding jobs when companies face financial difficulties, especially in strategic sectors. This includes engaging in discussions with potential buyers, offering incentives for businesses to retain jobs, and implementing policies that protect against unfair foreign competition. Without intervention, we risk losing not just jobs but essential capabilities within our industry.
Editor: Very insightful, Dr. Roux. Lastly, what message do you hope reaches the public and policymakers from these events and upcoming actions?
Dr. Roux: I hope the message is clear: protecting employment is not just about saving jobs; it’s about safeguarding our national interests and ensuring a resilient future for our economy. The struggles of Vencorex are emblematic of a larger challenge we face as a nation, and it’s time we come together to confront it decisively.
Editor: Thank you, Dr. Roux, for your valuable insights on this pressing issue. We hope to see meaningful action in the coming weeks.
Dr. Roux: Thank you for having me. Let’s keep the conversation going.