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During an Extraordinary Works’ Council meeting on Wednesday the 11th of June, the management of Delhaize Group presented its “Plan for the future”. A future that is catastrophic for workers since it involves the closing of 14 stores deemed 'unprofitable' and the loss of over 2,500 jobs. For the joint trade union front, the reasons given by management does not justify such a social drama.

The management explained that these measures are essential to ensure the future of business for Delhaize in Belgium. The decision is justified, according to them, by falling profits and loss of market share. Similarly, they do not hesitate to point the finger directly to wage costs deemed to be 'too high'. “We are outraged by this statement and the arguments used by management. Delhaize is a viable business that continues to make profits “-says Myriam Delmée SETKA.

Delphine Latawiec, CNE points at the lack of regulation in commercial planning and the increasing competition in the sector. “we are confronted with a wild financial strategy which is driving Delhaize to sacrifice jobs to save dividends for its shareholders. Wages have increased by 4.5 per cent while dividends by 12 per cent in the last years, this explains the perverse logic that stands behind Delhaize commercial strategy.

For several years, Belgian trade unions denounced the lack of a coherent commercial strategy within the brand. Being an actor in an increasingly fierce competitive environment (extension of opening hours, Sunday’s openings, precariousness of jobs, launch of its own-brand discount, reduced services, etc.) Delhaize has gradually lost some of its identity and its customers.

At first, the joint trade union front will inform workers about the measures presented by management. Employees’ meetings are ongoing and in numerous stores they have stopped working in response to this announcement. Other actions are not excluded and workers are united in rejecting the restructuring plan.

Last week, a trade union delegation met with the Belgian Prime Minister Elio Di Rupo. The resigning government dealing with current affairs sent a solidarity message to workers and their families. A task force composed by representatives of the national and regional government, trade unions and management has been put in place.

Belgian Trade Unions launched  a petition asking Delhaize customers to denounce the precarious working conditions and to reject the restructuring plan: https://www.lapetition.be/en-ligne/Non-a-la-restructuration-chez-delhaiz...

Laila Castaldo, Policy officer for the Commerce sector at UNI Europa explains in an interview on the Belgian Radio RTBF: “the announcement of the restructuring at Delhaize in Belgium just confirms the overall trend in the sector in Europe. Companies are just looking to maximise their profits, no matter if this means a race to the bottom in wages and working conditions. Too often, the driving factor in management strategic choices is how to make shareholders and customers happy while ignoring workers’ legitimate demands. What companies like Delhaize do not understand is that the wellbeing of a company lies also in the satisfaction of its employees. Unfortunately, the message that comes from Europe is alarming: the European Commission has just called on several EU government to implement far-reaching liberalisation measures for the commerce sector. So, the restructuring in Delhaize has to be understood in the whole economic and political context in Europe and the consequences of the financial crisis that are spreading now all over Europe”.

UNI Commerce is standing in solidarity with workers in Delhaize and will continue to support its Belgian affiliates CNE, SETKA and LBC-NVK in their trade union actions reacting to Delhaize’s restructuring plan.