The CGT, GRDF’s (Gaz Réseau Distribution France) leading union, is denouncing a plan to reduce payroll that could impact 15% of its workforce, or approximately 2,200 positions, in the coming years. This move, according to the union, stems from financial pressures linked to the evolution of the transmission rate, referred to as ATRD7, set for 2024 to 2028. This rate, which covers about one-third of the final bill, aims primarily to finance infrastructure modernization while integrating green gas. However, facing the continuous decline in the number of subscribers, GRDF finds itself compelled to streamline expenses.
According to the CRE (Commission de régulation de l’énergie), the number of gas subscribers fell by 197,000 between late 2022 and late 2023, a trend that reduces the volume of gas transported and, consequently, GRDF’s revenue. The company, in a bid to ensure economic efficiency, therefore plans to revise the organization of certain activities to offset this decrease.
Management’s response to union concerns
The 180 million euro cost-cutting plan announced by management has sparked strong reactions. The CGT claims that GRDF did not receive the rate increase it requested, forcing the company to adopt a “performance plan” focused on drastic savings. Sébastien Raya, central CGT union representative, argues that the lack of this rate hike directly necessitates payroll reductions, a measure he believes could affect up to 2,200 positions among the current 11,500 jobs at GRDF.
For its part, GRDF’s management refutes these claims, clarifying that performance efforts will not automatically lead to job cuts. Management explains that the reorganization will focus on adjustments in work methods and a more efficient allocation of resources. They further specify that, concerning transmission-related jobs, the current project would impact fewer than 300 positions.
A strike announced for November 5
To express its opposition to this project, the CGT has called for a strike on November 5, inviting GRDF employees to stop work for at least two hours. The union hopes for significant mobilization to voice its objections to a “never-before-seen economic performance plan,” which it sees as institutional neglect during an energy transition period.
The CGT reminds the public that the drop in subscriptions also impacts the goals for modernization and the integration of green gas into the network, an ambition France hopes to support in order to reduce dependency on fossil fuels. According to projections, gas network subscriptions could decrease from the current 10.7 million clients to approximately 10 million by 2035.
A phased reorganization until 2027
In response to employee concerns, GRDF’s management expressed its commitment to implementing support measures for those directly impacted. It also announced that consultations with relevant employee representative bodies will begin in December 2024, with a progressive project rollout planned through to the end of 2027.
Management specifies that the objective is to maintain competitive unit access costs to the network despite consumption declines. GRDF underscores that the adjustments are designed to preserve the company’s economic balance, while maintaining environmental commitments and supporting green gas development.
