Decathlon Employees Mobilize Against Dividend Payments
On December 7, 2024, approximately 20,000 employees of Decathlon are set to strike in protest against the company's decision to distribute one billion euros in dividends to shareholders of the Mulliez Family Association (AFM). The strike, organized by the CFDT-Services and CFDT of Decathlon, coincides with the busy holiday shopping season and aims to highlight the disparity between shareholder profits and employee compensation. A rally is scheduled for 1 p.m. in front of Decathlon's store at 23 Boulevard de la Madeleine in Paris.
The union's statement underscores the frustration felt by employees, stating, "You're not dreaming: one billion for shareholders, €0 for employees." They argue that this decision is particularly egregious given the ongoing workforce reductions across Decathlon's 330 stores. The CFDT is calling for a fairer distribution of the value created by employees, emphasizing that many workers are on minimum wage while shareholders receive substantial payouts.
Management's Justification and Union Response
Fabien Derville, the CEO of Decathlon, defended the dividend payment in an interview with La Voix du Nord, asserting that the funds are intended for "more value-creating use, not wealth." However, he did not provide specific details on how the dividends would be utilized. Derville acknowledged that the timing of the announcement was not ideal, especially as Auchan, another brand under the Mulliez umbrella, faces significant challenges, including plans to cut 2,389 jobs.
The CFDT has expressed its intent to escalate pressure on management, suggesting the formation of a commission of inquiry to investigate public aid received by AFM companies. The union's stance reflects a broader concern about the treatment of employees amid rising profits for shareholders, especially in light of the financial difficulties faced by other brands in the Mulliez group.
Implications for the Future
The strike at Decathlon highlights a growing tension between labor and management within the retail sector, particularly as companies navigate economic pressures and changing market conditions. With the backdrop of potential job cuts at Auchan, the outcome of this protest could influence labor relations across the Mulliez group and set a precedent for employee rights in similar industries. As the holiday season approaches, the actions taken by Decathlon employees may resonate with consumers and impact the company's public image.
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