Unions claim Delhaize franchising has cost 450 jobs

A trade union has claimed that the switch to a franchise model for Belgium’s Delhaize stores has led to a loss of 450 out of 4,300 jobs over the course of the past year.

These include redundancies, departures for medical reasons and retirements, the CNE union said.

According to CNE, this is a strategy in which franchisees of Delhaize shops would deliberately try to work out acquired - and therefore more expensive - employees and staff in part-time work resumption after illness.

“In one shop, up to 28 jobs have been lost,” said CNE’s Rosetta Scibilia.

“At the current rate, thousands of jobs will have disappeared in four to five years, without parent group Ahold Delhaize having spent even €1 on redundancy payments.”

Johan Van Loon of Dutch-language sister union ACV Puls said that in Flanders, “we did a survey of transferred staff and it does show that flexi-job and student statutes are being used a lot”.

Many transferees “proceed correctly”, Van Loon stressed, “but unfortunately, we note with some recruiters that actions are taken to get rid of older workers”.

Generally, according to the union official, this involves two techniques: pressuring employees - none of whom have union representation anymore now that they are at franchisees - to sign severance agreements with lower payments than the proper redundancy ones, or assigning more expensive workers heavier work than the often younger, new and cheaper workforce in the hope that they quit.

The switch to a franchise model was fiercely opposed by unions but Delhaize management went through with it anyway in the face of boycotts, blockades and protests.

A Delhaize spokesperson said the union’s statements regarding job losses “do not reflect the reality on the ground”.

The retailer said it was still in regular contact with the 127 franchised shops and “the vast majority of staff show themselves to be satisfied”.

“The shops are running much better, whether in terms of turnover, volumes or customer satisfaction – all signals are green,” the spokesperson said.

“That shows we made the right decision and we cannot imagine a shop running well with dissatisfied staff.”