Type
Internal restructuring
Country
France
Region
Méditerranée;
Location of affected unit(s)
Marseille, Uzès
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.82 - Manufacture of cocoa, chocolate and sugar confectionery

100 jobs
Number of planned job losses
Job loss
Announcement Date
3 April 2017
Employment effect (start)
1 May 2017
Foreseen end date
31 December 2018

Description

The German sugar confectionery firm Haribo has announced 100 job cuts by the end of 2018 in its sites of Marseille (Bouches-du-Rhône) and Uzès (Gard).  As it currently employs 750 people in the country, this will be equivalent to a reduction of around 15% of its workforce. According to the management, the negotiation with trade unions on the social plan were critical as the company is in a very good financial situation. Haribo France has seen its turnover doubled in ten years to reach €250 million in 2016 and its two sites produces 52,000 tonnes of candies per year, which is insufficient for the French market where Haribo sells 75,000 tonnes per year, with product coming from Germany, Spain, Hungary or Austria.

According to Les Echos, Haribo has stopped its investments in France six or seven years ago. The decision to freeze production capacity is related to the high labour costs in France. To reduce the workforce, the company will use non replacement of short-term employment contract, of employees leaving to retirement or early-retirement, and open a voluntary departure plan, to avoid forced dismissals. According to the management, the challenge with the restructuring plan was to keep opened the Haribo's two factories in Marseille and Uzès. Without the restructuring plan that has been approved by the workers through a vote (90% of participants, 72% approves the plan in Uzès and 62% in Marseille, despite the union CGT appeal to boycott the vote), the management would have to close one of the site before 2020.

Otherwise, Haribo which employs 4,000 people worldwide, is opening a new production site in Germany in July 2017 with 700 to 800 employees and in the United States by 2020 with the recruitment on 400 employees. 


Sources

  • 4 April 2017: Le Monde
  • 3 April 2017: Les Echos

Citation

Eurofound (2017), Haribo Ricqles Zan, Internal restructuring in France, factsheet number 90771, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/90771.