Anger is brewing and will manifest itself this Wednesday morning. The Mulliez galaxy, which owns Auchan, a retailer in difficulty, and brands in good shape, such as Decathlon or Leroy Merlin, is under fire from criticism from the unions, which are mobilizing this week. Because, despite the billion euros in dividends, 2,400 jobs are at risk.
The CGT Services have called a demonstration this Wednesday morning in front of the Auchan store in Fontenay-sous-bois (Val-de-Marne), on the outskirts of Paris. “How can we tolerate that Decathlon, a brand of the group, can pay a huge sum of dividends and that Auchan, a brand of the same group, can massacre the lives of thousands of people by eliminating 2,400 jobs? », asks the union in a press release published Tuesday.
The Mulliez empire is not a group in the strict sense, but rather a galaxy of companies all controlled by members of the Mulliez family association (AFM), including Leroy Merlin, Kiabi, Flunch, Boulanger and Norauto.
“Pressure shareholders and sacrifice jobs”
The CGT though sees in this situation “a perfect example” of a “scandalous system” whereby “thanks to the legal mechanisms offered by past and current governments, accompanied by generous public aid”, the “same group” can “pay handsomely from the shareholders and simultaneously occurring sacrifice jobs.”
Several trade unions revealed on Friday that Decathlon will pay one billion euros in dividends for 2024 to the Mulliez family. “Our strong financial base allows us to pass on part of our reserves to all our shareholders while continuing to invest in strategic growth initiatives that benefit our employees,our customers and our partners,” management responded to AFP on Friday evening.
But the CFDT Decathlon,”in shock”,considered that these sums were “disproportionate” compared to the results not achieved. On Saturday in the shops “invites the 20,000 employees of the brand to mobilize and strike”. ”All the brands of the Mulliez group are very angry, it’s a shame,” the CFDT’s central delegate at Auchan France, René Carette, told AFP.
For the Mulliez family, fans of discretion, this information comes at a rather bad time, a few weeks after the proclamation of the vast social plan envisaged by Auchan. A total of 2,389 jobs are at risk as the food distributor continues its struggling operations. According to a source close to management,social negotiations on the plan have begun,with “a precise timetable until the end of February”. Updates on the progress are expected before the “final” CSE on February 26th. On this date the voluntary departure plan will begin and will last until June, again according to this source.
The question of public aid
The CFDT services federation had asked for reclassification proposals to be put forward within other companies in the Mulliez galaxy. A source close to Auchan responds that the brand will do “everything to facilitate the relationship between its employees and AFM companies”, “depending on the geographical areas, qualifications and skills sought”. “We have the impression that thay want to give money so that people leave, rather than seeking internal reclassifications,” comments René Carette, of the CFDT.
The unions also question the validity of some public aid to businesses, with the CFDT calling for the creation of a commission of inquiry “to really understand what the public money was used for” of the various AFM brands.
The Prime Minister himself,Michel Barnier,said he wanted to “know” what Auchan and another group planning job cuts,Michelin,did “with the public money we gave them”. An issue “still under investigation”, said the cabinet of the minister of Economy, Antoine Armand, in mid-November.
In this regard,Auchan then assured that the annual reduction in tariffs foreseen by the CICE,equal to 83 million euros between 2013 and 2018,was “entirely used for the objectives pursued by this system”,adding that it had also “paid 258 million in taxes (excluding taxes collected: VAT,alcohol taxes,TICPE) and 607 million euros in social contributions paid by the employer.
What are the potential impacts of the job cuts at auchan on the broader Mulliez galaxy’s workforce?
Interview: Exploring the Mulliez Galaxy’s Job Cuts and Labor Unrest
editor: Welcome to Time.news.Today, we’re diving into a recent issue that has sparked significant controversy and unrest in France’s retail sector. Joining me is Dr. elodie Mercier,an expert in labor relations and corporate governance. Thank you for joining us, Dr. Mercier.
Dr. Mercier: Thank you for having me.
Editor: This week, the CGT union has called for a presentation following Auchan’s announcement of potential job cuts in the wake of substantial shareholder dividends. Can you explain how such a scenario creates tension between companies and their workers?
Dr. Mercier: Absolutely. When we see a situation like the one at Auchan, part of the Mulliez galaxy, it reflects a distressing imbalance. The Mulliez family controls several successful brands, including Decathlon and Leroy Merlin, which generate significant profits. Yet,Auchan faces dire financial challenges,potentially resulting in 2,400 job losses. That’s a stark contradiction that creates anger among employees and the unions advocating for them.
Editor: The CGT union has characterized this as a “scandalous system.” What do you think thay mean by that?
Dr. Mercier: The union is highlighting a systemic issue in corporate structures.When shareholders can prioritize dividends—profit redistribution—over job security, it raises ethical concerns. Their argument addresses how policies and legal frameworks allow for thes prioritizations, often at the expense of workers. In this instance, it feels particularly egregious when one part of a conglomerate can thrive while another suffers.
Editor: Should shareholders be more responsible for the societal impacts of their profit-taking?
Dr. Mercier: Most definitely. Shareholders must recognize their role in the broader community. There’s an emerging philosophy in corporate governance that emphasizes stakeholder capitalism, wherein companies should consider the interests not just of shareholders but of employees, customers, and the community at large. It’s about lasting profitability—ensuring long-term viability rather than short-term gains.
Editor: Could we expect more actions like the CGT’s demonstration in response to such situations?
dr. Mercier: Yes, we can anticipate more mobilizations. Unions are increasingly aware that solidarity becomes essential when confronting corporate practices that disregard the lives of working individuals. Demonstrations like the one planned at Auchan are not just about the job cuts; they symbolize a larger fight for workers’ rights and dignified treatment in the corporate sphere.
Editor: What steps can corporations take to avoid situations that lead to such tensions and protests?
Dr. Mercier: Firstly, companies should increase openness in their financial decisions and engage in dialogues with unions before making significant employment decisions. They should also adopt policies that not only aim for profitability but also ensure that job security is a priority. Something like fair profit-sharing models or establishing funds to protect employee interests during financial downturns can go a long way in rebuilding trust.
Editor: Thank you, Dr.Mercier, for sharing yoru insights on such a complex and pressing issue. It’s essential to engage in dialogue about these challenges as we consider the future of work and corporate responsibility.
Dr. Mercier: Thank you for highlighting these critical discussions. It’s clear that the landscape of labor relations is evolving,and we need to pay attention to it’s societal impacts.
Editor: that’s all for today’s interview. We’ll continue to follow the developments around auchan and the broader implications for labor practices in the retail sector. Thank you for tuning in to Time.news.
