Decathlon distributes one billion euros to its shareholders as labor tensions grow

Business

Decathlon store in Paris Credits: Decathlon

The Mulliez Family Association (AFM) has announced the distribution of one billion euros among its shareholders as remuneration for 2024. “Unacceptable,” declared the CFDT (Confédération Française Démocratique du Travail, or in English, French Democratic Confederation of Labour), which has called for a strike on Saturday 7 December 2024.

“One billion euros for shareholders and nothing for employees, when the vast majority of them barely earn the minimum wage, is intolerable,” said the CFDT statement, which demands a fair redistribution of the value generated by workers. The union is calling on the brand’s 20,000 employees to mobilise and take part in a strike in all its establishments on Saturday 7 December, just at the start of the Christmas season.

Decathlon is owned by the Mulliez Family Association (AFM), an economic interest group that manages the assets of the Mulliez family, originally from northern France. The announcement has generated great discontent, especially since this family, known for its discretion but with an estimated fortune of 28 billion euros in 2023 (according to Challenges magazine ), is at the centre of the controversy over the planned layoffs in its Auchan chain, which operates in Spain as Alcampo.

Millions of euros are said to have been distributed to Auchan shareholders in the years leading up to the announcement of the PSE (Employment Safeguarding Plan), which resulted in the elimination of 2,300 jobs by 2024. “Is this the new management model in the Mulliez group companies?” the union asks. “Should Decathlon employees fear a PSE in the future?”

The concern is all the more relevant given that, according to CFDT Decathlon, the workforce in the 330 stores has decreased dramatically. This contrasts with recent figures which indicated a growing company. In an article entitled “ Olympics 2024: Decathlon transforms its Olympic partnership into commercial success ”, FashionUnited documented, with data in hand, the positive performance of the company.

Did the threat of investors leaving influence this decision? The media has reported multiple news items on investments and solid results. In 2023, Decathlon recorded a turnover of 15.6 billion euros (excluding taxes) compared to 15.4 billion in 2022, and a net profit of 931 million euros.

The political context could be a factor in this decision. The current government's difficulties in legislating without resorting to the controversial article 49.3 have generated tensions in the National Assembly. On Monday, December 2, 2024, a new motion of censure was tabled against the government led by Michel Barnier. There is speculation that this instability could be discouraging investors. Is this measure an attempt to reassure them?

The AFM has not yet made any official statements. However, according to the press, a source close to the management explained to AFP that this distribution corresponds to “the accumulation of reserves within the company over time by the shareholders. It is distributed among all shareholders, including more than 60,000 company employees.”

This decision is part of “a balanced management of the company, in which a solid financial base allows for the redistribution of a portion of the reserves to all shareholders, while continuing to invest in strategic growth initiatives for the benefit of employees, customers and partners.”

This article originally appeared on FashionUnited.FR, translated and edited to English.

It was translated using an AI tool. .

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