The decision of the French government to restructure the national rail freight operator Fret SNCF to avoid European sanctions keeps sparking contrary reactions. The National Union of Autonomous Trade Unions (UNSA) recently highlighted how this initiative will have “nefarious effects” on France as a whole.
The UNSA, which claims to have over 200,000 members, is asking the French government to review its resolution to discontinue Fret SNCF and to find alternative options that would safeguard both the workers and the competitiveness of the sector. According to them, taking such a path would lead to “massive job cuts”. Previous estimates suggest that at least 500 people will become jobless. “The discontinuity imposed will compromise the progress made in this area and will encourage freight transport to shift to more polluting modes, such as road”, UNSA added.
Not only UNSA against the initiative
UNSA is not the first entity to point out that this decision will have a negative impact on France and its transport sector. Already last December, another large French trade union, GCT sounded the alarm about the restructuring of Fret SNCF. The company itself, via its Social and Economic Committee, recently urged the French government to reconsider its decision. The country’s private rail freight sector, moreover, highlighted how taking over the routes that Fret SNCF has to give up poses significant challenges.
Fret SNCF restructuring process
The French government decided to launch a massive restructuring of Fret SNCF in January 2023 as the consequence of an investigation launched by the European Commission. The investigation focussed on possible illegal state aid that the company might have received to cancel a multi-billion debt between 2007 and 2020.
The outcome of the restructuring were two. First, Fret SNCF will be divided into two new companies as of 1 January 2025: New Fret and New Maintenance. New Fret will retain 80 per cent of Fret SNCF’s operations, while New Maintenance will pick up maintenance activities.
The remaining 20 per cent of Fret SNCF’s services, which equals to 23 combined transport contracts, are being distributed to various rail freight operators. The main beneficiary of these contracts is DB Cargo France. In other words, the restructuring of Fret SNCF is already underway. This means that it might be a difficult process to stop, despite the many voices uniting against it.
Also read:
- Rail returns to Stellantis auto plant in northern France
- DB Cargo France: ‘traffic decline balanced out by SNCF’s routes pickup’
- SBB Cargo France has no plans to take over Fret SNCF routes
