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Lactalis Accused of Hiding Profits from Workers
28 Nov
Summary
- Lactalis faces legal action over alleged profit misrepresentation.
- Over 500 employees filed a case for underpaid profit bonuses.
- Potential losses for 16,000 workers estimated in hundreds of millions.
Privately-owned dairy giant Lactalis is embroiled in a legal dispute in France, where more than 500 employees have accused the company of misrepresenting its profits. These employees allege that this practice has led to significant underpayment of profit bonuses, potentially affecting up to 16,000 workers and resulting in losses of hundreds of millions of euros.
The affected staff, represented by lawyer Renaud Portejoie, are demanding increased transparency regarding Lactalis's financial disclosures and those of the Besnier family, which controls the company. Lactalis, while periodically disclosing financial accounts, has faced criticism for its past transparency. The company has acknowledged filing statutory accounts but disputes any link between its recent tax settlement and the profit-sharing allegations.
Lactalis stated that a €475m tax settlement reached late last year with French authorities was to resolve a dispute over international companies unrelated to employee profit-sharing. The company also referenced an association, 'Justice for Our Bonuses,' which it claims is misleadingly acting as a class action and lacks standing, while asserting that civil and criminal proceedings are underway against such practices.
