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2nd December 2008

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Editis staff demand payout after sale

02.06.08 Barbara Casassus

Employees of France's second largest publisher Editis are threatening to go on strike unless parent company Wendel shares some of the profits from the sale of the business to Spanish group Planeta.

The staff of Editis won a first round in their demand for a share of the capital gain from the company's sale, but will call for a strike tomorrow (Tuesday 3rd June) if the handout is not increased, according to union officials.
 
Just hours before the takeover was finalised last Friday, the Wendel management agreed to grant €600 to each member of staff, a total of €2.2m, said Gérard Fabert, national secretary for books and communications of the Générale du Travail (CGT). "This is a first step, but it is not nearly enough," he added. "The staff are angry at the way they have been treated."
 
The unions are due to meeting Editis human resources managers this afternoon (Monday, 2nd June), and if the cash offer is not increased will call their members out on strike tomorrow (Tuesday).
 
Wendel's capital gain on the €1,026m deal has been estimated at €350m, although the unions claim the net income from the deal was closer to €500m. This was only four years after Wendel acquired the group in 2004 for €660m. "It is enormous, for such a short time," Fabert said.
 
Upsetting the staff most were press reports stating that top managers and shareholders would receive 10% of the capital gain for their contribution to the performance, he said. "It is unjust for the staff not to be rewarded as well, so we are also asking for 10% or €35m."
 
Personnel representatives of the 44 Editis publishing houses issued a joint statement last week, saying that the staff deserved a slice of the cake. A similar petitition signed by 90% of the staff of Robert Laffont has already been presented and others are in preparation.
 
The dispute comes against a background of declining consumer purchashing power in France and follows Editis salary negotiations that ended late last year with an increase of less than the rate of inflation, Fabert noted.
 
The Bookseller telephoned Wendel several times for comment, but its calls were not returned.

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