The current economic climate in France is marked by significant job insecurity, particularly in key industrial sectors.
The CGT's warnings highlight the potential for widespread economic repercussions if large companies continue to prioritize profits over employee welfare.
Binet's proposals for regulatory changes reflect a growing concern among labor leaders regarding the sustainability of jobs in the face of corporate restructuring.
If the proposed emergency measures are not implemented, France may face a severe economic downturn with rising unemployment rates.
The situation could lead to increased social unrest as workers and unions push back against corporate layoffs and demand stronger protections.
Without intervention, the cascading effects of these layoffs could destabilize smaller businesses that rely on larger companies for contracts.
Sophie Binet, the General Secretary of the CGT, has raised alarms about a significant increase in redundancy plans across various sectors in France, warning that nearly 250 social plans are currently in preparation. This alarming trend could threaten between 170,000 and 200,000 jobs, particularly in industries already facing crises such as automotive, aerospace, and mass distribution. Binet's warnings come after previous estimates indicated around 130 social plans affecting over 33,000 direct jobs earlier this year, escalating to nearly 200 plans and 150,000 jobs threatened by early November.
Binet attributes this surge in redundancy plans to the actions of large companies that, during inflation, opted to increase their profit margins and dividends at the expense of investments and employee salaries. She fears that these large-scale layoffs could lead to a cascading effect, impacting smaller subcontractors and exacerbating the job crisis.
To address this urgent situation, Binet has proposed several emergency measures. These include a return to regulated energy prices for industries, the establishment of more protective customs barriers by Europe, and an extension of the Florange law to include companies with 50 employees or more. This law currently mandates that larger companies must seek a buyer before closing operations, and Binet argues that it should be strengthened to prevent closures and protect jobs. Additionally, she advocates for a moratorium on layoffs while companies explore solutions to keep their operations running.
