Massive payout to shareholders: Union mobilizes Decathlon workforce

The Association Familiale Mulliez (AFM), the corporate holdings of the French entrepreneurial family Mulliez, which includes the sports retailer Decathlon, has announced that it will pay out one billion euros to shareholders as compensation for 2024. This has met with strong criticism from the Democratic Trade Union Confederation (CFDT), which is calling for a strike by Decathlon employees next Saturday.

“One billion euros for the shareholders and nothing for the employees, while the vast majority of them only receive the minimum wage, that is unsustainable,” says a CFDT press release. The union is demanding that the value created by employees be shared more fairly and is calling on the brand’s 20,000 employees to take part in the strike in all branches on Saturday, the start of the Christmas season.

Decathlon is part of the Mulliez Family Association (AFM), an economic interest group that represents the interests of the Mulliez family from the French department of Nord. The announcement of the dividend payment is causing outrage, especially since the wealthy and at the same time extremely discreet Mulliez family is already in the public eye because of the planned job cuts at their supermarket chain Auchan.

The shareholders of Auchan, another brand in the Mulliez empire, are also said to have received significant sums in the past – and that was a few years before the announcement of a social plan (Plan de Sauvegarde de l’Emploi, PSE) and the reduction of 2,300 Positions in 2024. The CFDT asks: “Is this a new management method within the Mulliez brands?” The union warns that Decathlon employees also have an upcoming social plan have to fear.

The concern appears justified since, according to CFDT, the workforce in Decathlon’s 330 stores is already drastically decreasing. According to recent reports, the company appeared to be in excellent economic shape.

Did politics play a role?

The political context could further explain the current situation. The difficulties of the government under Michel Barnier in passing laws without the controversial Article 49.3 are causing tension in the National Assembly. On Monday, another motion of no confidence against the government was submitted. There are warnings from various quarters that political instability could deter investors. Is the AFM trying to reassure its investors with the dividend distribution?

The AFM has not yet made an official statement. However, a source close to management told AFP that the amount was “a distribution of reserves that shareholders have accumulated over time. It will be distributed to all shareholders, including the company’s more than 60,000 employees.”

This decision is part of “balanced corporate management. The solid financial basis makes it possible to return part of the reserves to all shareholders and at the same time continue to invest in strategic growth initiatives for the benefit of employees, customers and partners.”