Saunier Duval Announces Major Job Cuts Amid Market Crisis
The Nantes manufacturer of heating equipment, Saunier Duval, a subsidiary of the German Vaillant group, has announced a job protection plan (PSE) that will result in the elimination of 250 jobs at its Nantes factory. This decision comes as the company faces a significant crisis, exacerbated by a sharp decline in sales and volumes since June 2023. The site director, Yuna Josse, confirmed that the factory, which produces heat pumps and gas boilers, has been severely affected by inflation and a slowdown in the real estate market.
Impact on Employees and Union Response
The factory currently employs 900 people, with the industrial unit, which has 750 employees, being the most affected by the job cuts. Negotiations with union organizations are set to begin in September, with the first voluntary departures expected in January 2025. The CFDT, the majority union, has described the announcement as 'extremely violent' and is urging the company to reclaim production volumes transferred to Slovakia and Turkey to mitigate the job losses in Nantes.
Government's Role and Future Outlook
In a broader context, the French government had announced an action plan in April aimed at producing one million heat pumps per year by 2027, a move expected to create 45,000 jobs. However, the current economic climate has led to a European-wide slump in the heat pump market, forcing the Vaillant group to cut over 700 positions across Europe. Public authorities, including Nantes town hall and the government, are being called upon to mobilize and support the affected workers. An inventory of the market will be conducted in March 2024 to reassess the situation before any economic layoffs are implemented.
- The heat pump technology involves an air heating or cooling process that extracts calories from the air or ground to heat buildings, emitting significantly less greenhouse gas compared to traditional oil or gas heating systems. This environmentally friendly technology is central to the French government's strategy to reduce CO2 emissions.
- The announcement of the job cuts has sparked significant indignation among the employees, who had initially been informed of a much smaller number of layoffs. The timing of the announcement, just before the summer holidays, has also been criticized by union representatives. The broader impact on the industrial sector in Nantes is a cause for concern, with calls for a strategic intervention from public authorities to support the local economy.
- Despite the current challenges, the company and unions will be closely monitoring the market trends over the coming months. The outcome of the negotiations and the subsequent market assessment in March 2024 will be crucial in determining the final number of job losses and the future direction of the Saunier Duval factory in Nantes.
