Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
French supermarket and hypermarket group Auchan opened a collective dismissal procedure for 1,426 workers at its Italian sites, 267 of whom in Sicily. The company employs 11,400 employees in 51 Italian plants and posted about 50 EUR million budget losses in 2014.
According to the management, the negative results and the consequent dismissals are also due to the presence of unfair competition in the sector, especially in southern Italy, where competitors are alleged not to apply the national collective agreements, or they adopt forms of undeclared work.
In order to find shared remedies to the redundancies, negotiations were already held with unions over the last months but they failed in March. As a result, the company withdrew from the company-level agreement. The unions criticised the company remarking that their proposals to reduce the impact of dismissals were unacceptable, involving incentivised voluntary dismissals and, at the same time, a significant reduction of workers’ wages. Unions will hold a national strike on 9 May. In December 2014, a mobility procedure was already concluded in the Auchan site of Carini (Palermo), entailing incentives and early retirement for 20 workers. According to media reports, other two outlets were closed over the last weeks following the interruption of negotiations.
The ERM has reported a previous restructuring announced by Auchan in 2011.
Update, 6/07/2015: An agreement has been reached closing the collective dismissal procedure. According to the agreement, the company will provide incentives for a maximum number of 1,345 dismissals to be implemented on a voluntary basis. Reportedly, the company has so far received the availability of 1,220 voluntary redundancies.
Eurofound (2015), Auchan, Internal restructuring in Italy, factsheet number 79434, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/79434.