Casino Management Reaches Agreement with Staff Representatives
In a significant development for the Casino group, staff representatives have withdrawn their appeal against the distributor's accelerated safeguard plan after reaching a full agreement with management. This decision was announced following a hearing at the Paris Court of Appeal on November 13, 2024. The inter-union group indicated that the initial plan, crafted by the former management and its new buyers led by Czech billionaire Daniel Kretinsky, lacked adequate compensation for employees.
Didier Marion, spokesperson for the inter-union, stated that the agreement with the current management validates their concerns regarding the absence of a social component in the original plan. He emphasized that once this issue was recognized and addressed, there was no longer a reason to pursue the appeal. Although the specific terms of the agreement have not been disclosed, it marks a critical step towards improving employee relations within the company.
Strategic Changes Under New Leadership
As the appeal court prepares to deliver its decision next week, the current management has opted not to comment on the situation. New CEO Philippe Palazzi is set to outline his strategic vision for the company at a press conference scheduled for November 14, 2024. Palazzi aims to transform Casino into a
champion of proximity,
by focusing on the franchise business model, which is expected to be more profitable and reduce operational costs for the distributor.
Casino, which employed approximately 200,000 people globally at the end of 2022, has undergone significant restructuring due to mounting debt and a series of asset disposals. The company has sold most of its large format stores to competitors such as Auchan, Intermarché, and Carrefour, resulting in a workforce reduction to less than 30,000 employees. Additionally, a social plan currently under discussion poses a threat to around 3,000 jobs, according to union representatives. This restructuring reflects a broader shift in Casino's operational strategy as it pivots towards smaller store formats like Monoprix, Franprix, Vival, and Spar.
