Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Sector
Transportation / Storage
Warehousing And Support Activities For Transportation, Postal And Courier Activities
Warehousing And Support Activities For Transportation
52.29 - Other transportation support activities

157 - 329 jobs
Number of planned job losses
Job loss
23 jobs
Number of planned job creations
Job creation
Announcement Date
27 June 2016
Employment effect (start)
1 October 2016
Foreseen end date

Description

Automotive logistics company Gefco group has informed its central Works Council about the intention to cut 157 positions and create another 23 in two of its activities: 115 jobs will be cut out of a total of 610 position in its logistic activities of new vehicles, and 42 jobs will be cut out of a total of 144 positions in its overseas operations (air and sea freight forwarding). The restructuring plan also forecasts the creation of 19 positions in the logistic activities and 4 in the overseas activities. Net job loss will be  a total of 134 positions, but this number could increase as the plan also includes 172 employment contract changes that could be refused by employees and lead to their dismissal. The group employs about 3,000 people in France. Gefco is a former subsidiary of the car manufacturer PSA Peugeot-Citröen which still represents 40% of its turnover in France.

According to an internal document quoted by the press agency AFP, the restructuring plan also includes a working time increase and a wage reduction for some drivers.  The main union, Force Ouvrière (46% of the votes at the last professional elections) has asked employees to strike on 1st July against this plan.

The management points to decreasing economic results since 2011, a decline of the car manufacturing sector and a loss of market shares due to sharp competitors that increase pressure on prices.  Gefco already reduced its workforce in 2011 with 232 job cuts and a social plan, which will lead to 472 job cuts across three divisions (road freight transport, storage and international transport services). This was signed in July 2015 by Gefco's four trade unions (CGC, CFDT, CFTC and FO).


Sources

  • 23 June 2016: WK-Transport Logistique
  • 23 June 2016: France 3 Franche-Comté

Citation

Eurofound (2016), Gefco, Internal restructuring in France, factsheet number 87989, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87989.