Should we be working on developing a European industrial strategy, as proposed by industry minister, Marc Ferracci? Or should we instead hold companies that have received public funding accountable, as suggested by trade union leaders Sophie Binet (CGT) and Marylise Léon (CFDT)? Alternatively, should the government block the approval of certain redundancy plans, as advocated by left-wing MP François Ruffin?
Since November 5, a series of announcements have raised serious concerns across the country: the closures of two Michelin manufacturing plants in Cholet and Vannes, western France, affecting 1,254 employees; a redundancy plan at French retail group Auchan, which is preparing to cut 2,389 jobs; and the receivership of chemical manufacturer Vencorex, endangering some 500 jobs. In the wake of this black week, political leaders and trade unionists are wondering how to stop further losses on the social front.
In the three years after the Covid-19 pandemic, companies – supported by state-guaranteed loans, various aid programs during lockdowns and a relatively stable economy – hired extensively and laid off few employees. But now, the horizon is darkening and difficulties are piling up. "There will probably be announcements of site closures in the coming weeks and months," Ferracci said on France Inter radio on Saturday, November 9, referring to the possible destruction of "thousands of jobs." "We're at the start of a violent industrial bloodletting," said Binet of the CGT, in the weekly La Tribune Dimanche the following day, questioning companies' desire to "always increase margins" and "distribute ever more profit to shareholders."
The CGT has already identified nearly 200 pending redundancy plans and has called for regional mobilizations on December 12. Binet also advocated for "a company not to be able to receive state aid if the opinion of staff representatives is unfavorable" – a stance supported by Léon, her counterpart at the moderate CFDT. "It seems crazy to me that the government doesn't know what the aid that is allocated is used for: we're talking about hundreds of millions of euros," she said on Franceinfo on Friday. Ferracci welcomed these statements. "If the aid is not effective overall, then we have to stop it," he admitted on France Inter.
The automotive industry, in particular, is expected to bear a significant burden from the shift to electric vehicles, as it lags far behind China. Benjamin Krieger, head of the European Association of Automotive Suppliers, said that "this is the worst period we've ever seen, and also the most difficult in terms of duration," despite the fact that the sector employs 1.7 million people in Europe. In France, a large number of companies in the sector are struggling.
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