Michelin’s announcement it is to cut a potential 700 jobs as it closes its Joué-lès-Tours truck plant in France, while also discontinuing production at its Algerian lorry facility, has provoked strong union reaction today (10 June).
Despite also announcing an EUR800m (US$1.06bn) investment in French production facilities, as well as backing the truck tyre factory in La Roche-sur-Yon, doubling output to 1.6m units a year by 2019, today’s news has unleashed union fury.
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The CGT union – already reeling from automotive job cuts elsewhere in France as the country struggles through a new recessionary period – reacted in strong terms with reports suggesting direct action could be possible.
“This morning, we had to calm tempers down,” a CGT leader is reported as saying. “Certain people were ready to set fire to the tyres. If the factory must burn, it will burn.”
Michelin acknowledged European demand was currently running at 25% below 2007 levels and intends to concentrate on its La Roche facilities with a EUR100m investment plan that will create a further 170 jobs.
The Joué-lès-Tours plant, whose truck tyre facility will cease production by the first-half of 2015, will specialise in semi-finished products that it already manufactures, with a EUR22m capital programme.
Around 200 people will continue to work at the facility to produce metal fabrics and the rubber bladders used in Michelin curing presses.
To meet growth in the global earthmover tyre market, Michelin says it will invest EUR145m in its French plants from 2013 to 2019, with projects to upgrade and increase production capacity for these tyres at the Montceau-les-Mines and Puy-en-Velay facilities.
A EUR45m capital programme will be deployed to increase semi-finished product capacity at the Montceau-Les-Mines plant, leading to the creation of 64 new jobs, while an extra EUR260m will be invested across the French manufacturing base from now until 2019.
Michelin’s research and development centre in Clermont-Ferrand will be upgraded from the 2013 to 2019 period with a EUR220m programme to transform existing facilities and build new ones.
“Of the 930 people currently employed at the Joué-lès-Tours plant, around 200 will continue to work at the new facility specialised in semi-finished products,” said a Michelin statement. “Of the 730 others, 250 could benefit from pre-retirement programmes, while each of the 480 remaining persons will be offered two positions corresponding to his or her qualifications at another Michelin plant in France.
“For employees unable or unwilling to relocate, career transition workshops will be set up. These facilities, which have proven their effectiveness in the past, provide personalised support to help employees to build a new career path.
“In addition, Michelin feels a deep responsibility to its local host communities. It has therefore pledged, through its Michelin Développement subsidiary, to create 730 new jobs in the Tours area.”
To finance the project, Michelin will recognise EUR135m in non-recurring expenses in the consolidated financial statements for the six months ending 30 June, 2013.
The CGT union was not immediately available for comment in France.
