Type
Internal restructuring
Country
France
Region
Location of affected unit(s)
Paris and various locations
Sector
Transportation / Storage
Land, Water And Air Transportation
Land Transport And Transport Via Pipelines
49.20 - Freight rail transport

126 - 400 jobs
Number of planned job losses
Job loss
Announcement Date
8 December 2016
Employment effect (start)
1 February 2017
Foreseen end date

Description

Euro Cargo Rail (ECR), the French subsidiary of the German railway company Deutsche Bahn, has announced a reorganisation that will lead to cut 300 positions in France by 2017, about one-third of its workforce. 80 positions will be cut at the headquarter in Paris, on a total workforce of 250 people. The other job cuts will affect sites on regional level. The management explains its decision by the weakness of its resources management, an insufficient quality of services, the decrease of orders of its main customers (steel industry,  cereal producers), structural grounds (needs to reserve time slot one year in advance by SNCF réseau, competition with road transport) and increasing labour costs related to the entering into force of the new collective agreement of the railway sector. Since 2013 the group has accumulated a lost of €63 million.

Update 5/05/2017 :  On 4 May 2017,  trade unions and management reached a majority agreement on the redundancy plan proposed by the company. The plan involves cutting 295 jobs (of which 48 posts are vacant) and 165 contract alternations, which could result in dismissal if the workers refuse. Therefore, 400 jobs could be affected (over 33% of the workforce). Considering the vacancies and the job creations planned, there will only be an estimated 126 net redundancies (excluding contract changes). Trade union CFDT has stated that plan includes a supra legal severance payment of up to €36,000, a training aids of up to €18,500 and various internal/external mobility aids.


Sources

  • 12 December 2016: Les Echos
  • 9 December 2016: Le Monde
  • 5 May 2017: Le Populaire du Centre

Citation

Eurofound (2016), Euro Cargo Rail, Internal restructuring in France, factsheet number 89674, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/89674.