Unions fear job losses from Mory – Ducros merger

French unions are warning that the planned merger of express parcel firms Mory and Ducros inJanuary 2013 will lead to job losses but called off a strike scheduled for today (November 22) at

Financial investor Caravelle aims to merge the two firms, which it acquired in 2010 and 2011,into a stronger single business to improve their financial results and make them more competitivein the fragmented French express parcels market.

Caravelle bought Mory’s express parcel activities (‘Mory Team’), with turnover of about €450million, for a symbolic price of €1 in September 2011 after the loss-making group was declaredinsolvent and at the time pledged to retain about 2,800 of the 3,500 employees. Ducros (formerlyDHL Express’ domestic French parcels business), with revenues of €300 million and some 2,500employees, had been taken over in 2010 and was subsequently downsized in an effort to break eventhis year.
 
Under the merger plan, Mory, the slightly larger of the two firms, will “absorb” Ducros tocreate a single operator with revenues of some €750 million and a dense nationwide networkoperating under the ‘Mory Ducros’ brand. The two networks have already been gradually integrated inrecent months.

The two companies’ managing directors told French transport newspaper L’Officiel desTransporteurs that Mory Ducros will offer four core services: time-definite express deliverieswithin 24-36 hours, two different products for deferred deliveries, and a pallets distributionservice.

But transport unions CFDT and CGT fear that the merger will lead to heavy job losses among the2,700 Mory employees and 2,500 Ducros staff, especially in view of the weak market conditions inFrance and since collective agreements expire at both firms on December 31, 2012. After severallocal demonstrations they called a nationwide protest strike for today at the companies’depots.

This was then called off late yesterday, however, following further talks with companymanagement. The unions said that “despite several points of disagreement, significant advances andfirm commitments by management” had been made regarding pay and working times for the next 15months. Further talks will be held in late November and early December.