Fret SNCF: massive job and traffic losses, protesters storm EU offices

Meeting held in Paris. Image: Clement Beaune Clement Beaune

The die is cast. The French freight subsidiary of SNCF – Fret SNCF – will be restructured in order to avoid sanctions from the EU Commission. The restructuring means that it will have to give up 20 per cent of its contracts and 30 per cent of its traffic. In human toll, this means a loss of 500 jobs.

This was announced by the Minister Delegate for Transport, Clément Beaune on Tuesday 23 May, after the French government had been in negotiations with the European Commission discussing the fate of the company. These negotiations went by all but quietly; protesters on the streets expressed their wish for the company to be saved, and eventually breached the offices of the European Commission on Tuesday, causing a few hours of mayhem in Paris.

Verdict European Commission

Tuesday was only the climax of a discussion that had been going on for several months. Fret SNCF has been scrutinised by an investigation from the European Commission for the aid it had received from mother company SNCF. Between 2007 and 2019, Fret SNCF saw a total debt cancellation of 5.3 billion euros and a recapitalisation of 170 million euros.

This, according to the European Commission, is state aid distorting fair competition on the market. The European Commission, before Tuesday, was in the process of drafting a verdict, which would likely have translated into sanctions and a request to repay the state aid it received. This, as many agreed, would have meant the final blow to the company, which accounts for a significant share of the cargo transported by rail in France. For the past weeks protesters have taken the streets, led by the CGT Federation of Railway Workers.

The negotiation

Having said this, one can understand that the stakes of the parties involved were high. While railway workers feared their jobs, the government feared the loss of rail volumes, a green transport mode at a moment when it is trying to do the opposite: shifting more freight on the rails at the expense off the road.

On Tuesday, the commission, the French government, the company and the trade unions came together to discuss the matter, under the loud turmoil of protesters outside. Images and videos of the protests on Tuesday went viral as the protesters raided the offices of the European Commission. “If you attack SNCF freight, we will become mean!” if what they had allegedly told the minister earlier, as reported by La France Libre.

The decision

Nevertheless, a decision was taken. The government could either wait for the verdict of the European Commission with the risk that it would be harsh, or take action. It did the latter. Not much detail has been disclosed about the how and when, as the decision came late night.

To the CGT union, the meeting was a facade. “Unsurprisingly, the government appropriately assumed the role of culprit. Doing this he (Clément Beaune) renounces, without ambiguity, to defend his position with the European Commission, activating discontinuity, i.e. the loss of part of the traffic and the liquidation of FRET SNCF”, it reacted.

To the protesters, the decision was unacceptable. Indeed, it will result in a massive loss of jobs and this is what they feared the most. “Imagine you are 21 years old, you join a company in which you want to grow, in which you want to evolve, a company which is relaunching as best it can. You finally think of settling down professionally and then you have Europe…”, tweeted a young railway worker called Alex’s on the social media platform.

Protesters in Paris on Tuesday 23 May. By Karima Delli

What is next?

Although the decision was presented as final, it is not clear what happens next. Considering the response of the union, more protests and strikes lie ahead. It said: “The CGT will remain on the offensive to preserve FRET SNCF and will drive the battle, which is a social issue for the railway workers and more broadly, for the society.”

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Author: Majorie van Leijen

Majorie van Leijen is the editor-in-chief of RailFreight.com, the online magazine for rail freight professionals.

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Fret SNCF: massive job and traffic losses, protesters storm EU offices | RailFreight.com

Fret SNCF: massive job and traffic losses, protesters storm EU offices

Meeting held in Paris. Image: Clement Beaune Clement Beaune

The die is cast. The French freight subsidiary of SNCF – Fret SNCF – will be restructured in order to avoid sanctions from the EU Commission. The restructuring means that it will have to give up 20 per cent of its contracts and 30 per cent of its traffic. In human toll, this means a loss of 500 jobs.

This was announced by the Minister Delegate for Transport, Clément Beaune on Tuesday 23 May, after the French government had been in negotiations with the European Commission discussing the fate of the company. These negotiations went by all but quietly; protesters on the streets expressed their wish for the company to be saved, and eventually breached the offices of the European Commission on Tuesday, causing a few hours of mayhem in Paris.

Verdict European Commission

Tuesday was only the climax of a discussion that had been going on for several months. Fret SNCF has been scrutinised by an investigation from the European Commission for the aid it had received from mother company SNCF. Between 2007 and 2019, Fret SNCF saw a total debt cancellation of 5.3 billion euros and a recapitalisation of 170 million euros.

This, according to the European Commission, is state aid distorting fair competition on the market. The European Commission, before Tuesday, was in the process of drafting a verdict, which would likely have translated into sanctions and a request to repay the state aid it received. This, as many agreed, would have meant the final blow to the company, which accounts for a significant share of the cargo transported by rail in France. For the past weeks protesters have taken the streets, led by the CGT Federation of Railway Workers.

The negotiation

Having said this, one can understand that the stakes of the parties involved were high. While railway workers feared their jobs, the government feared the loss of rail volumes, a green transport mode at a moment when it is trying to do the opposite: shifting more freight on the rails at the expense off the road.

On Tuesday, the commission, the French government, the company and the trade unions came together to discuss the matter, under the loud turmoil of protesters outside. Images and videos of the protests on Tuesday went viral as the protesters raided the offices of the European Commission. “If you attack SNCF freight, we will become mean!” if what they had allegedly told the minister earlier, as reported by La France Libre.

The decision

Nevertheless, a decision was taken. The government could either wait for the verdict of the European Commission with the risk that it would be harsh, or take action. It did the latter. Not much detail has been disclosed about the how and when, as the decision came late night.

To the CGT union, the meeting was a facade. “Unsurprisingly, the government appropriately assumed the role of culprit. Doing this he (Clément Beaune) renounces, without ambiguity, to defend his position with the European Commission, activating discontinuity, i.e. the loss of part of the traffic and the liquidation of FRET SNCF”, it reacted.

To the protesters, the decision was unacceptable. Indeed, it will result in a massive loss of jobs and this is what they feared the most. “Imagine you are 21 years old, you join a company in which you want to grow, in which you want to evolve, a company which is relaunching as best it can. You finally think of settling down professionally and then you have Europe…”, tweeted a young railway worker called Alex’s on the social media platform.

Protesters in Paris on Tuesday 23 May. By Karima Delli

What is next?

Although the decision was presented as final, it is not clear what happens next. Considering the response of the union, more protests and strikes lie ahead. It said: “The CGT will remain on the offensive to preserve FRET SNCF and will drive the battle, which is a social issue for the railway workers and more broadly, for the society.”

Also read: 

You just read one of our premium articles free of charge

Want full access? Take advantage of our exclusive offer

See the offer

Author: Majorie van Leijen

Majorie van Leijen is the editor-in-chief of RailFreight.com, the online magazine for rail freight professionals.

Add your comment

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