Type
Internal restructuring
Country
Italy
Region
Location of affected unit(s)
Sector
Retail
Retail Trade, Except Of Motor Vehicles And Motorcycles
Retail Sale In Non-Specialised Stores
47.11 - Retail sale in non-specialised stores with food, beverages or tobacco predominating

1,345 jobs
Number of planned job losses
Job loss
Announcement Date
27 April 2015
Employment effect (start)
7 July 2015
Foreseen end date

Description

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.


Sources

  • 10 December 2014: Il Giornale di Sicilia
  • 26 April 2015: Qui Brescia
  • 27 April 2015: Ansa
  • 27 April 2015: Il Fatto Quotidiano

Citation

Eurofound (2015), Auchan, Internal restructuring in Italy, factsheet number 79434, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/79434.