Layoffs Likely to Surge in the Following Months?
France Experiences Tripled Job Cut Plans in a Year, Warns CGT Union
Union representatives from the CGT (General Confederation of Trade Unions) have expressed concern over an increase in job cut plans across France, reflecting a worsening employment situation. On Tuesday, May 27, the CGT presented an updated map of these job cut plans, showing 381 social plans nationwide since September 2023 - nearly triple the number recorded between 2023 and 2024.
According to the CGT's count, these plans threaten nearly 300,000 jobs, with almost half of them concentrated in the industry sector alone. CGT general secretary Sophie Binet has warned that this figure may underestimate the actual number of affected jobs, as small layoff plans in small and medium-sized enterprises (SMEs) might not be included in their records.
Binet emphasized that the situation has been deteriorating for several months and expressed frustration over a lack of response to their initial warnings about the deindustrialization movement. In September 2024, the CGT first raised the alarm about the industrial fabric weakening, only to receive a deafening silence in response.
The union is also worried about long-term trends and expects the situation to worsen further in the coming months, pointing to major difficulties in the automotive, chemistry, and paper sectors. Baptiste Talbot, a member of the CGT's leadership in charge of coordinating struggles, fears a significant deterioration in the situation with more job cut plans to come.
Among the hotspots identified by the CGT, the upcoming social plan announced by ArcelorMittal, the world's second-largest steelmaker, is particularly worrying. The plan could result in the loss of 600 jobs in France, impacting several plants across the country. Affected sites include Dunkirk, Florange, Basse-Indre, Mardyck, Mouzon, Desvres, and Montataire, primarily in the northern and northeastern regions.
Trade unions, including the CGT, have voiced strong opposition to the potential offshoring of ArcelorMittal France's operations to Poland or India, with the union calling for nationalization to protect jobs. However, the government has dismissed this option due to its high cost. The uncertain future of Stellantis' industrial site in Poissy, employing 2,600 people, is another concern for the union.
The retail sector is also facing challenges, with social plans potentially multiplying due to e-commerce competition. Concerns surround the closure of Casa home decor stores, threatening more than 600 jobs, and the judicial liquidation of the Jennyfer clothing chain. The CGT warns that the government must take swift action to address the current situation, including ending the supply-side policy and exploring nationalization in certain cases to limit the spread of job cut plans.
The CGT Union has highlighted the worrying trend in the industry sector, with half of the threatened jobs due to job cut plans in France occurring in manufacturing businesses. In light of the potential offshoring of ArcelorMittal's operations and the uncertain future of Stellantis' industrial site, the union has advocated for finance solutions such as nationalization to safeguard jobs.
