After weeks of conflict between management and unions, on 7 June last the personnel of the Belgian subsidiary of FNAC Group approved by an overwhelming majority a recovery plan that includes wage cost-cutting measures, but also an investment plan guaranteeing the opening of four new shops over the next five years.
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After weeks of conflict between management and unions, on 7 June last the personnel of the Belgian subsidiary of FNAC Group approved by an overwhelming majority a recovery plan that includes wage cost-cutting measures, but also an investment plan guaranteeing the opening of four new shops over the next five years.
On 7 June, 75.49% of the personnel of FNAC Belgium approved the draft agreement concluded in May by management and the group's Belgian unions. The agreement was officially signed on 21 June at the Federal Public Service Employment, Labour and Social Dialogue (SPF Emploi, Travail et Concertation sociale/FOD Werkgelegenheid, Arbeid en Sociaal Overleg). 'We were not expecting such massive approval', observed Jean-Marie Frissen - Belgian Union of White-Collar Staff, Technicians and Managers (Syndicat des Employés, Techniciens et Cadres de Belgique, SETCa) after the votes in the written consultation organised in the company had been counted. FNAC's management welcomed its employees' attitude. 'This vote will enable FNAC to implement a number of projects (investments, modernisation, opening of new sales outlets, enlargement of shops, etc.) that will help revive the group name in Belgium', it announced in a press release.
The Belgian subsidiary of the French group, which has more than 800 employees in Belgium, was shaken last March when a labour conflict was triggered by management's announcement of a recovery plan that included the loss of 25 jobs, measures for additional flexibility and a wage scale adjustment. With declining sales and growing competition from the German giant Media Markt (which is expanding in Belgium), FNAC Belgium registered losses in 2004. It thus announced the recovery plan, described by trade union representatives as a restructuring. 'The recovery plan is essential in today's difficult economic context, particularly due to the collapse of the record market, the arrival of Media Markt and wage costs that are 15% higher than those of our competitors', explained the FNAC Belgium spokesman.
At mid-April, a union delegation forming a united front met the Director of Human Resources of FNAC Group in Paris. 'This is a symbolic action in as much as we think that it is up to Paris to take the real decisions on the future of FNAC Belgium', explained the Setca representative.
For the French boss of FNAC Belgium, Yves Lagier, acceptance of pay restraint was the 'only way out' for the company. Shortly before the personnel voted on the draft labour-management agreement, he had made it known that rejection would result in the cut-off of investments and the shutdown of non-profitable sites. On the other hand, if the plan were accepted, he promised to invest more than EUR three million beginning this year to bring the group's Belgian shops 'up to par'.
The protocol of agreement made official on 21 June contains no redundancy measures but sets out a recovery plan that includes cost-cutting efforts and an investment plan guaranteeing the opening of four new shops over the next five years (the total rising from six at present to 10). 'We are indeed going to open new shops as soon as possible', confirmed Yves Lagier. He added: 'I believe such a strong vote will encourage FNAC Group to make the necessary investments in Belgium, both to bring existing shops into line with the group's best practices and to open new outlets. The first is expected to be inaugurated in Brussels in the first half of 2007.'
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Eurofound recommends citing this publication in the following way.
Eurofound (2005), Tension at FNAC Belgium, article.
