Decathlon: One billion euros for shareholders and a threat of strike

Business

Decathlon shop in Paris. Credits: Decathlon

The Mulliez Family Association (AFM) has announced the payment of one billion euros to shareholders as 2024 remuneration. "Unacceptable", considers the CFDT Décathlon, which is calling for a strike on Saturday, December 7, 2024.

"A billion euros for shareholders and nothing for employees when the vast majority of them only receive the minimum wage, this is intolerable" states the CFDT press release, which demands that the value created by employees be shared and calls on the brand's 20,000 employees to mobilize and strike in all stores on Saturday, December 7, 2024, the date that marks the start of the Christmas period.

Decathlon belongs to the Mulliez Family Association (AFM), an economic interest group that works for the economic interests of the Mulliez family, originally from the French department of Nord. The announcement is not going down well, especially since this discreet but extremely wealthy family (estimated fortune of 28 billion euros in 2023 by Challenges magazine) is currently in the spotlight with the planned layoffs within its Auchan brand.

Millions of euros were also reportedly received by shareholders of Auchan, another brand in the Mulliez galaxy, a few years before the announcement of the PSE (Job Protection Plan) and the elimination of 2,300 jobs in 2024. "Is this a new management method within the Mulliez brands?", asks the union. Should Decathlon employees be worried about an upcoming PSE?

A question that is all the more legitimate since, according to the CFDT Decathlon, the workforce is drastically decreasing in the 330 stores. And yet, according to the latest news, the company seemed to be in great shape. In an article entitled "JO 2024: Decathlon transforms its Olympic partnership into a commercial success", FashionUnited described, with figures to back it up, the brand's performance.

Did the threat that investors would leave if the government censored them play a role?

The press articles are full of news announcing investments and positive results. In 2023, Decathlon generated 15.6 billion euros (excluding tax) in turnover (compared to 15.4 billion euros excluding tax in 2022) and 931 million euros in net profit ( "Decathlon: key figures for 2023" ).

The political context may perhaps explain this decision. The difficulties of the presidential camp in legislating without going through the (arbitrary) article of 49.3 are creating a stir in the National Assembly. Just yesterday (Monday, December 2, 2024), yet another motion of censure was filed against the government, led by Michel Barnier. From all sides, we hear that this instability will cool the ardor of investors. Are we trying to reassure them?

As it stands, the AFM did not wish to comment, but, according to the press, a source close to management indicated to AFP that this amount corresponds "to a distribution of reserves accumulated within the company over time by shareholders. It is distributed to all shareholders, including the company's more than 60,000 employees."

This decision would be part of "a balanced management of the company, the solid financial base allowing to return part 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 called Gemini 1.5. .

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Decathlon