CGT alert: a serious industrial crisis threatens employment

In this period of economic turbulence, the voice of the CGT resonates like a haunting alarm in the face of an imminent threat hovering over thousands of workers. The central union, through its general secretary Sophie Binet, announces a “industrial bleeding” unprecedented. With almost 150,000 jobs expected to disappear across the country, particularly among giants like Michelin and Auchan, the entire French industrial fabric is faltering. The importance of this alert is explained by the devastating potential of social plans successive which, in addition to affecting direct workers, could cause a domino effect among subcontractors and other economic partners.

In a context where business margins seem to take precedence over maintaining employment, this crisis calls for collective awareness and raises pressing questions about the country’s industrial strategy. The CGT not only demands a moratorium on layoffs, but also a real overhaul of industrial policy to ensure a fairer and more sustainable future. This situation, with its multiple ramifications, is an emergency that no one can afford to ignore.

France is currently facing a industrial crisis unprecedented, while the CGT is sounding the alarm on the growing number of social plans. The general secretary of the CGT, Sophie Binet, recently declared that the nation is experiencing the beginning of a violent industrial bloodletting, highlighting the scale of the situation.

According to estimates, more than 150,000 jobs are likely to disappear in the coming months. Among the industrial giants affected are Michelin and Auchan, which have already announced massive social plans. At Michelin, the closure of the Cholet and Vannes sites by 2026 directly threatens 1,254 employees.

Beyond these companies, the crisis affects all sectors, particularly automotive, aerospace, and mass distribution. In May, the CGT had identified around 130 social plans and 33,000 jobs at risk. However, this number has since exploded, reaching almost 250 social plans in preparation and 200,000 jobs at risk. This acceleration marks a serious and worrying trend known asdomino effect, impacting subcontractors and thus reinforcing the fall in industrial employment.

The strategy questioned by the CGT is based on the desire of companies to increase margins and distribute more profits to shareholders, often at the expense of workers. The CGT calls for a real industrial policy and calls for an immediate moratorium on layoffs, advocating the preservation of industrial resources and qualifications.

Published on November 9, 2024 at 11:51 p.m., updated on November 10, 2024 at 9:20 a.m.

The CGT launches a solemn alert through the voice of its general secretary, Sophie Binet: we are on the verge of a serious industrial crisis which directly threatens thousands of jobs in France. The figures are striking: up to 200,000 jobs could be threatened by nearly 250 social plans in preparation, affecting key sectors such as automotive, aeronautics and mass distribution.

There is no shortage of concrete examples of this situation. Michelin, the tire giant, announced the closure of its Cholet and Vannes sites, planning to eliminate 1,254 jobs, a first incident revealing the deep bleeding to come. This decision is part of a logic of maximizing margins and profitability for shareholders, to the detriment of employees.

Likewise, at Auchan, massive social plans are underway, accentuating a wave of uncertainty for thousands of workers. Sophie Binet warns of an inevitable “domino effect”, which will hit subcontractors and the entire supply chains of major contractors.

The situation is critical and calls for an urgent response. There CGT requires a strong industrial policy, refusing to allow companies to receive state aid without the approval of staff representatives. In particular, she calls for a moratorium at Michelin to avoid layoffs and preserve vital industrial resources as well as the valuable qualifications of employees.

Already in May, the CGT announced 130 social plans threatening 33,000 jobs. Today, the count is climbing inexorably, reaching alarming figures of 128,250 to 200,330 jobs threatened since September 2023. These data highlight a worrying acceleration job cuts, highlighting the social urgency of this industrial crisis. Faced with French industry “up against the wall”, the CGT calls for mobilization to prevent an imminent economic and social catastrophe.

The recent announcement of social plans by industrial giants such as Michelin And Auchan triggered a severe warning from the CGT. In an interview with La Tribune Sunday, Sophie Binet, general secretary of the CGT, expressed her concern about what she describes as “the beginning of a violent industrial bloodletting”.

According to Sophie Binet, this trend could lead to the disappearance of more than 150,000 jobs, an estimate that she probably considers lower than reality. She highlighted a potential “domino effect” affecting subcontractors of large groups.

In the specific case of Michelin, the announced closure of the Cholet and Vannes sites before 2026 concerns 1,254 employees. Binet denounces a corporate strategy which aims to “increase margins” and to “distribute ever more profits to shareholders”, thus sacrificing industrial tools and jobs. She also highlighted the dividend payment records by Michelin, indicating that these decisions serve to “finance the cost of capital” rather than invest in sustainable jobs.

Faced with this crisis, the CGT has identified a list of 200 social plans in preparation. The union center demands the establishment of a “real industrial policy” and proposes that a company cannot receive state aid if the opinion of staff representatives is unfavorable. She also asks for a “moratorium” on layoffs at Michelin for “preserve our industrial tools and our qualifications”.

Faced with the alert from the CGT concerning the expected loss of more than 150,000 jobs following the social plans of large groups like Michelin And Auchan, it is imperative that measures be taken to mitigate this “industrial bleeding”. Here are some proposals that government and business could consider:

Government measures

• Moratorium on layoffs: Establish a temporary moratorium on industrial layoffs to allow in-depth reflection on rescue and transformation strategies for affected sectors.
• Support for professional retraining: Establish training and retraining programs for affected employees, offering them skills adapted to the growing sectors of the modern economy.
• Tax incentive policies: Offer tax incentives to companies that invest in upgrading their equipment and improving energy efficiency, thereby promoting competitiveness without reducing headcount.

Corporate actions

• Reinvestment of profits: Encourage companies to reinvest a significant portion of their profits in their development and their workforce rather than increasing dividends.
• Consultation of staff representatives: Before any decision to cut jobs, companies should consult staff representatives and favor alternative solutions such as internal reclassification.
• Creation of innovation centers: Encourage the creation of innovation and research centers within industrial companies to develop new products and services, while preserving local employment.

Cooperation between government and business

• Public-private partnerships: Establish partnerships for the development of joint projects that stimulate the local economy and preserve jobs.
• Conditional grant: Grant subsidies to businesses on condition of maintaining employment and effective consultation of unions.

By adopting these measures, it is possible to mitigate the devastating effects of the industrial crisis and build a more stable and prosperous future for workers and businesses.

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