After Delhaize, Brico moves to franchise more stores

DIY chain Brico will convert 10 of its stores in Belgium to franchise status by next summer, following in the controversial footsteps of grocery chain Delhaize, whose switch to a 100% franchise model sparked months of protests.

According to a representative of the CGSLB/ACLVB union, the transition of certain Brico stores to independence is part of a cost-cutting operation.

The representative noted that the chain is accumulating debt, with reportedly €100 million in arrears.

Brico therefore intends to sell 10 stores to independent operators. The first four are expected to be franchised by February.

Staff will have the opportunity to continue working in these stores under the new status or to remain within the Brico chain and be moved to another store. Negotiations are due to start shortly for two stores.

When questioned, CNE representative Elisabeth Lovecchio expressed concern.

“Of course there is fear,” Lovecchio said.

“Franchising simply allows Brico to generate fewer costs, as it will be the franchisee who will bear all the costs related to the workers.

"The fact that there are different joint committees [collective bargaining groups for workplace conditions] within the same business, for the same job, the conditions for workers will be different. By franchising, employers are trying to drive down working conditions.”

Lovecchio said that management’s offer to let workers stay with the chain comes with conditions, notably a joint committee that guarantees fewer rights.

“The only positive point is that there are no redundancies as such, but it will still cause problems for workers,” said Lovecchio.

“Being relocated when your whole family life is organised around a workplace requires a complete reorganisation.

"The workers’ feelings are divided between relief at being able to keep their jobs for some, and a certain shock for those who work in stores that will eventually be closed. It remains a sword of Damocles hanging over them and they have many questions."

A number of questions regarding the franchising remain unanswered, including which stores are affected and how other chains would absorb relocated workers.

These issues will be addressed during the negotiations, which are only just beginning.

The use of franchising is not new at Brico, with several stores already operating under this status.

The chain has about 150 stores in Belgium, mainly Brico stores, but also smaller BricoCity stores in urban areas and large BricoPlanit stores in out-of-town retail parks.

According to Lovecchio, the intention to franchise would eventually concern the whole of the Benelux.