why the Fret SNCF issue pisses off the unions

SNCF – Will the trains run at Christmas? The SNCF unions raised their voice this Saturday, November 9 and called for an indefinite strike from Wednesday, December 11 in addition to a day of mobilization on November 21. They are calling for a moratorium against the dismantling of Fret SNCF and intend to protest against the terms of opening regional lines to competition.

The unions are particularly opposed to the announced dismantling of Fret SNCF, the leading rail freight company in France, which will disappear on January 1 to be reborn in the form of two separate companies: Hexafret for the transport of goods, and Technis for the maintenance of locomotives the union federations.

This is the second stage of the discontinuity plan negotiated by the French State with the European Commission, to avoid a recovery procedure. The State is in fact suspected of having paid aid considered illegal between 2005 and 2019 to Fret SNCF to make up its deficit, for around 5 billion euros. However, rail freight has been open to competition since 2006 in France and aid must benefit the entire sector, according to European regulations.

Avoid a reimbursement of 5 billion euros

The State only had two options according to those involved in the case: go to litigation and take the risk of losing, which would have forced Fret SNCF to reimburse 5 billion euros and led to its disappearance with a social plan targeting 5,000 people, according to its leaders.

Or negotiate a “discontinuity plane” with European authorities to avoid prosecution. This is the path that was initially chosen by the Minister for Transport Clément Beaune, confirmed last Monday by his successor François Durovray.

In their press release this Saturday, the trade union organizations “reaffirm that the establishment of a moratorium is possible and necessary to allow the various players to get back around the table, and find ways to guarantee not only the continuity of Fret SNCF, but also its development on the most long term ».

“We received a total rejection from the company's management during the first meeting we had at the beginning of the week”assures Julien Troccaz, the federal secretary of Sud-Rail, contacted by AFP. “We have colleagues who have worked their whole lives, for 20, 25 years, for the public company Fret SNCF, and on January 1, everything stops. Today, our colleagues do not know how things will happen on January 1st. They know that they are going to be in private companies, but they do not know their social rights. So obviously there is suffering”continues the unionist.

10% of employees will go to Technis

There will be no layoffs, the SNCF and the government have promised: all of the railway workers concerned will be transferred to other companies in the group. Of the 4,500 employees retained, 10% will go to Technis and the rest to Hexafret.

In the end, Fret SNCF had to abandon 23 of the most profitable freight flows to the competition – from Belgian, German and French operators – or 20% of its turnover and 30% of its traffic. This operation was carried out in the first half of 2024.

The second stage, with the disappearance of Fret SNCF in favor of Hexafret and Technis, should lead to the elimination of 500 jobs, or 10% of the workforce. A third stage will take place at the end of 2025-beginning of 2026, with the opening of Rail Logistics Europe's capital to the private sector. “But with a red line, the SNCF group remains in the majority”according to Frédéric Delorme, the president of Rail Logistics Europe, the holding company bringing together the freight activities of SNCF (Captrain, combined transport, etc.).

The share of goods transported by train is already low in France (11% in 2023) compared to the European average (17%). But rail freight also recorded a more marked decline in France in 2023 (-17% of goods transported) compared to its European neighbors.

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