Times are difficult for the thousands of employees in the retail sector in Belgium, and a large-scale social conflict is taking shape after the announcement of a strike notice for the entire retail trade. It was filed on Friday, March 24, by two unions, the National Central of Employees (Christian) and the General Central of Liberal Trade Unions of Belgium.
A third organization, the Union of Employees, Technicians and Managers (Socialist), says it too wants “show teeth” before April 17, the date scheduled for the strike, but it is afraid of offering the employers an argument which would allow them to refuse any negotiation. It is on that day, in fact, that must, in principle, take place the biannual social negotiation between bosses and union representatives of the distribution.
The employees of two “historic” Belgian companies that have gone under the foreign flag, the Mestdagh group, bought in January by Intermarché, and Delhaize, merged in 2016 with the Dutch company Ahold, are currently mobilized against the franchising of all the stores of the two groups. The unions fear a scenario that could become widespread and lead to the unraveling of social gains, as well as a wave of layoffs.
Lower costs against the statutes
For Comeos, the Belgian trade federation, other restructurings are likely, in any case, to follow. We cite in particular the case of Carrefour, which, regularly losing market share, could be tempted to franchise its 84 supermarkets still integrated. Cora, Match as well as Albert Heijn, in Flanders, could also imitate Delhaize. As for Colruyt, number one in the kingdom, it has already opted for the franchising of its subsidiary Spar.
The sector must meet the challenge of discount competition and the attraction of neighboring countries to consumers
Reducing costs, becoming more profitable and more flexible, in particular with openings on Sundays: the management’s objective does not fit well with the union’s desire to protect statutes dating from several decades ago which mean, in particular, that the employee he integrated hypermarket generally earns 30% more than the employee of a franchise or local business.
The sector must, in fact, meet several challenges, including that posed by discount players, who now monopolize 40% of the market. The change in consumer behavior as well as the attraction exerted by neighboring countries (France, the Netherlands, Luxembourg), where shopping often costs much less, are other destabilizing factors for traditional brands.
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