Politics overshadows Alstom's plans to shut French train making plant

  • 8 years ago
The French government says it wants Alstom to continue making trains at its plant in Belfort in the north east of France.

The company – which is 20 percent state owned – plans to halt production there by the end of 2018 citing falling orders and a need to streamline production.

Ministers met President Francois Hollande on Monday, after which the Economy and Finance Minister Michel Sapin said: “The president of the republic has given us a target: to make sure Alstom’s railway activities are maintained. To reach that objective, we’re going to work with elected bodies, with the trade unions, with Alstom’s management and with all of those who are able to order a certain number of trains in France, so we can save Alstom’s rail division in Belfort.”

Ministers said they were not told in advance about Alstom’s plan. The company said it did warn politicians a year ago this was going to happen.

It also intends to offer jobs at its other French sites to 400 of the 480 workers at Belfort.

Overshadowed by politics

CGT union representative Roland François said he is worried about politics taking over the issue. On the government pledge he said: “We hope it’s not just a political gesture. With the presidential election coming, we see all these politicians making gestures, but what we want is results.”

Inevitably it has become political with some calling for a rethink of a contract French state-owned railways operator SNCF and its partners recently awarded to German competitor Vossloh.

An Alstom spokeswoman would not comment on the political aspects of the latest moves by the Socialist government.

“We have presented a project in a context (loss of orders) which everyone knows about,” she said. “We are talking about the transfer of 400 jobs within France.”

With French unemployment sitting at around 10 percent since Hollande was elected in 2012 and a wide-open presidential election looming in April, no politician can afford to ignore such a high profile case, despite its relatively small scale.

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