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24 January 2025

ArcelorMittal Dunkerque Faces Employment Crisis Amid Investment Delays

Union leaders rally community support as steel plant's future hangs by a thread over funding issues.

ArcelorMittal Dunkerque, the largest steel plant in France, is facing dire employment concerns as management recently backtracked on promises of significant investment aimed at modernizing the facility. With up to 3,200 direct jobs at stake, alongside the livelihoods of thousands more within the local community, the situation has been described as increasingly precarious.

Leaders of the CGT labor union have taken significant steps to confront this challenge. On January 23, 2024, Gaëtan Lecocq, the Secretary General of CGT ArcelorMittal Dunkerque, addressed around 300 attendees during a meeting to alert the local population to the looming threat posed by the lack of investment. "If we do this meeting, it's to alert the local population," he stated, emphasizing the need to raise awareness among community members about the stakes involved.

During this meeting, the stark words of Alain Le Grix de la Salle, President of ArcelorMittal France, echoed through the crowd: "All European steel sites are at risk of closure by 2025." This chilling forecast is not merely hypothetical; it reflects the harsh realities facing the steel industry, particularly at Dunkerque, where the employees have been calling for action to address the declining conditions of their workplace.

Despite the earlier promise of €1.8 billion for investment—including €850 million from public funding—workers at Dunkerque have yet to see any tangible results. The delays raise serious questions about the company's commitment to both the site and the future of the employees who have dedicated their lives to the establishment. Lecocq pointed out, "We've been told workers are proud to come to work here. But why are we seeing record resignations?" This sentiment is shared by many who have begun to lose their sense of pride and hope for the future at ArcelorMittal Dunkerque.

Once viewed as the backbone of the local economy, ArcelorMittal now finds itself at the mercy of various external factors. These include fierce competition from Chinese steel producers and rising energy costs, both of which have challenged the company's profitability and prospects. Already, two days of partial unemployment have been implemented for employees at the Dunkerque site during the first few months of the year, signaling troubling signs of its operational health.

The concern stretches beyond immediate job losses. Many employees, some of whom have dedicated decades to the company, are now questioning the viability of their careers. Freddy, who works for one of ArcelorMittal's largest subcontractors, said, "You can feel the atmosphere on the site changing. There’s less investment everywhere and people are worried about what will come next." The urgency of local jobs is echoed through statements from long-term workers who fear for the next generation's opportunities.

Among the gathered crowd, several voices emerged to highlight the urgent need for investment to transition to eco-friendly steel production. While some clung to hopes of the long-awaited decarbonization project, others expressed doubts about its realization. One veteran worker stated, "We haven't seen our line at this state before. There's simply not enough funding for maintenance or improvement. If the director decides to abandon our operations entirely, we won't just see laid-off workers, but also the collapse of our community's economic fabric."

The wider community relies heavily on the steel plant, which indirectly supports the livelihoods of nearly 10,000 individuals. This alarming potential ripple effect has prompted union leaders to mobilize not just the workforce but also local stakeholders. Lecocq decried the management's neglect, saying, "ArcelorMittal is organizing under-investment to relocate its operations to countries with cheaper labor and lower standards, primarily targeting Brazil and India."

All these concerns were sharply highlighted during the recent meeting, which concluded with calls for regional political figures to take decisive action. The labor union's strategy is aimed not only at preserving jobs but also at uniting community members across various sectors who will be impacted by the uncertain future of the steel plant.

One poignant thought from employees at the assembly depicted their fear of what lies ahead. "The future is not at Arcelor Dunkerque anymore; that's for sure," reflected Karim, who has spent nearly 30 years at the facility. With sentiments of disillusionment weaving throughout their narratives, they are wrestling with the absence of jobs for those just entering the workforce. The past pride associated with ArcelorMittal is quickly fading, and workers are increasingly anxious about what the future holds.

Rallies such as this serve to reinforce the urgency of addressing the employees' concerns, as many believe the stakes go beyond simple livelihoods. The potential for ArcelorMittal Dunkerque to meet the clean steel requirements of the coming decade hangs precariously on the balance of immediate investments and the commitment of management to revitalizing the plant. If not, the consequences could be dire, not only for the workers but also for the economic health of the entire region.