Michelin says it could cut up to 2,300 jobs in the next three years in France, although the supplier stresses this will not involve lay-offs or ‘relying’ on plant closures.
The potential job losses would see up to 1,100 positions in offices and up to 1,200 in plants go, with nearly 60% of projected redundancies based on voluntary early retirement opportunities and the remainder on Group-supported voluntary severances.
For each job eliminated, Michelin says it is committed to help create another, either through the development of its new businesses or through participation in local job market revitalisation programmes.
Michelin is offering to initiate negotiations “quickly” with unions to devise a three-year framework agreement. This agreement will be informed by a large locally based co-construction process, whereby each production plant and each corporate and administrative entity will work on resources to be deployed to help improve its overall performance.
Through the deal, Michelin will offer an employee support programme comprising, on a voluntary basis, early retirement opportunities open to all eligible employees (with full retirement during the period) and outplacement initiatives.
To implement these measures, Michelin will propose unions negotiate mutually agreed annual severance packages (RCC), which will be used to support the evolution in the workforce and jobs resulting from the project in the next three years. This annual approach is designed to manage these changes step-by-step as the project reaches each milestone, as defined through a local social dialogue process.
As part of these negotiations, Michelin also intends to propose measures for employees who continue their careers with the Group. In addition, the supplier will offer these employees be able to pursue their careers in their current region.
“The ultimate goal of this project is for France, the birthplace of Michelin, to remain a key country in the Group’s strategic transformation in the years ahead,” said Michelin CEO, Florent Menegaux.
“Our economic responsibility is to improve our overall performance while developing new high value-added business projects.
“This business responsibility has to go hand-in-hand with a highly demanding commitment to social responsibility, to work with our unions and employees to forge consensus solutions that are as balanced as possible and to do everything we can to provide exemplary support to people and our host communities in these transformations.”