Union questions Michelin 'social plan' amid job losses, plant closures

Clermont-Ferrand, France – The French CGT trade union has questioned the purpose of a new Michelin 'social plan' for employees – while also signaling concerns about a possible restructuring of the tire maker's operations in France.*

On 18 April, Michelin CEO Florent Menegaux unveiled a plan to ensure a 'living wage',  ‘universal social protection floor’ and skills-development for all group employees worldwide.

However, claims the trade union, the move is more about 'creating a diversion' while the company is currently eliminating 1,500 jobs in Germany and 1,400 in the US.**

Moreover, said a CGT statement issued in response to the 'social plan', there is now 'talk' suggesting that Michelin is also considering 'restructuring or even closing' factories in France.

The CGT went on to challenge the French tire maker's record on pay, which it claimed was 'barely above' the French minimum wage for many employees.

“If the salary was so ‘decent’ at Michelin, why does it have so much trouble recruiting and retaining new hires?” CGT asked.

The trade union called for dividends being paid to Michelin shareholders to also go to 'maintaining jobs and increasing salaries in line with living costs.'

* ERJ is requesting a response from Michelin to the statement issued by the CGT trade union regarding the group's 'social plan'.

** Michelin has more recently initiated a restructuring at its site in Olstyn, Poland, but has yet to publish a group press statement or respond to requests for more information about this development.