Danone S.A. is a French multinational food-products firm headquartered in Paris. Danone has announced a transformation plan that unions worry could result in 450 job losses across Europe. Also, Danone stated in January that it would be closing the factory, which employed 157 people.
Danone, a leader in the food and beverage business, employs about 90,000 people and has products available in more than 120 markets. Its sales in 2023 totaled €27.6 billion. Forbes has recognized the company as one of the best employers and top companies for women in 2023.
Since Danoner is a people-centric organization, its employees are regarded as its most valuable resource. So, why did the business lay off its employees? The article explains further.
Danone’s Digital Investment
Danone marked the 40th anniversary of its Parets del Valles factory over a year ago. It said it planned to invest €6.7 million in digitizing the factory.
Danone described the facility as “strategic” and a “motor for change.” It is producing products such as Actimel and Danacol. It is also Europe’s first factory to make dairy and non-dairy alternatives.
Last year, the facility produced 132 dairy and non-dairy items combined. Over 20 percent of its products are exported to Portugal, the U.K., and Ireland.
Danone closed the factory with 157 employees
Danone stated on January 12, 2024, that it will close its factory in Parets del Valles, just north of Barcelona. This decision was taken to “streamline” operations and “gain efficiency.” The factory will close, and it will affect 157 workers.
The business has agreed to initiate a conversation about re-industrializing the factory. At the same time, the unions are rejecting the proposal and urging Danone to improve its plan.
According to the business, the factory was closed “after a long period of study and analysis.” The company vows to “drive reindustrialization to preserve the area’s industrial continuity and reduce the impact on employment.”
Danone further highlighted that Spain is a “strategic market.” It stated that it would keep its commitment to keeping it that way.
The unions, who heard the news, expect protests to stop the closure. Union sources told reporters they are meeting with Danone representatives to get all the information.
In a statement, the union CCOO “categorically” criticized the closure. They are also urging the multinational to “reverse course” and instead sit down for talks with the workers to guarantee job security. Politicians have also expressed surprise and support for the probable shutdown.
Reactions after the closure announcement
The mayor of Parets del Valles, Francesc Juzgado, expressed disbelief at the news. He claimed that Danone was “unaware of the collateral damage” of the closure and that 60% of the employees originate from Parets del Valles.
“Not only are 157 workers affected directly, but a whole industrial chain of suppliers and services,” stated Juzgado.
The Catalan government expressed sadness over the French multinational’s decision and solidarity with the workers. It plans to meet with Danone “in the coming days” to secure the best possible outcome of the negotiations.
Meanwhile, the Spanish Ministry of Industry said it would ” contact the affected workers” and monitor reindustrialization plans.
Additional layoffs at Danone
On March 20, Danone revealed the transformation plan for trade unions serving Danone employees throughout Europe. The business introduced a new ‘Social Pact,’ according to the trade union IUF. The IUF has asked Danone to disclose details of its recent transformation plan. In this plan, the unions fear it may result in 450 job losses across Europe.
Danone proposed a project at this meeting explaining its desire to “accelerate the technological revolution.” This is to make the business more fluid and competitive and to offer attractive, proactive career paths. The plan also stated that the company intends to shift workers to four European service centers, notably two in Poland.
The IUF and its subsidiaries are calling on Danone:
1. To guarantee no forced redundancies due to roles leaving or being relocated to these service locations.
2. To discuss opportunities for all workers whose positions are at risk. So that they can maintain suitable alternatives within the company if they wish.
3. To give additional details about the newly announced “Social Pact.”
The Social Pact is Danone’s updated version of its “double economic and social strategy” to date. It aims to upgrade the expertise of a large part of Danone’s worldwide workforce in the face of future job changes.
According to IUF General Secretary Sue Longley,
“We have heard references to Danone’s new “Social Pact,” but they are only short statements. It is now time for Danone to lay out the content, objectives, and timeline for this “Social Pact.” All stakeholders must negotiate any deal, including Danone’s thousands of employees and trade unions.
Conclusion
Thus, the union has also asked the company to explore options for every employee whose jobs are threatened. This is to find suitable alternative employment for those affected within the company. Furthermore, it has asked for further specifics and data about the ‘Social Pact.’
The IUF supports trade unions in the food, agriculture, and hospitality sectors. It now has over 400 affiliated unions from around 130 countries.