Workers at Sanofi to strike to protest consumer health unit sale, union official says

Uproar in France as Labor Unions Mobilize Against Sanofi's Planned Sale

In a move that has sparked widespread concerns over job security and national sovereignty, France's CGT and CFDT unions have called on workers at pharma company Sanofi to go on strike. The strike, set to begin from Thursday, is a protest against Sanofi's planned sale of its consumer health unit to a US private equity firm, Clayton, Dubilier & Rice (CD&R).

The Controversy Surrounding Doliprane

At the heart of the controversy is Doliprane, France's best-known medical drug and a staple in every French pharmacy. Doliprane is the brand under which Sanofi sells paracetamol, a non-opioid analgesic for the alleviation of mild to moderate pain and fever. The drug is so ubiquitous in France that locals often refer to any paracetamol product as Doliprane, regardless of the manufacturer.

Sanofi's decision to sell a 50% controlling stake in its consumer health unit, which includes Doliprane, has been met with fierce resistance from politicians and labor unions across the political spectrum. Critics argue that this sale would lead to a "loss of sovereignty" for France in the sensitive health sector. The government has also expressed its concerns, with Economy Minister Antoine Armand and Industry Minister Marc Ferracci pledging to protect French interests and ensure that significant operations, including research and development facilities, remain in France.

Political Backlash

The planned sale of Doliprane has drawn sharp criticism from politicians on all sides. President Emmanuel Macron has entered the fray, stating that the government has the instruments needed to protect France from any unwanted capital ownership. Fabien Roussel, leader of the Communist Party, called the planned sale "shameful," while Jordan Bardella, president of the far-right RN party, echoed concerns about France's national security.

Green party deputy Marine Tondelier pointed out the lessons learned from the COVID-19 pandemic, when medication bottlenecks were largely blamed on outsourcing production to foreign countries. An ad-hoc group of centre-right lawmakers, including members from Macron's party, warned of a very worrying risk for national security if Doliprane falls into American hands.

Union Response

The CGT and CFDT unions, which represent a significant portion of Sanofi's workforce, have been at the forefront of the protests. They argue that outsourcing Doliprane's production could lead to job losses and disruptions in the supply chain. Boris Vallaud, parliamentary leader for the Socialists, reminded the government of the 2022 shortages of paracetamol in French pharmacies and questioned why they would now give up control completely.

In response to these concerns, the unions have called for a strike starting from Thursday. This strike is not only about protecting jobs but also about safeguarding France's health sovereignty. The unions believe that this sale would undermine France's ability to regulate and control its own healthcare products, potentially jeopardizing national security and public health.

Government Stance

Despite the protests and union actions, Sanofi has continued negotiations with CD&R. The American investment firm is offering over €15 billion for the consumer health unit, which has raised questions about the financial viability of maintaining these operations within France.

Economy Minister Antoine Armand has assured that Sanofi and the potential buyer must meet certain conditions. Specifically, he stated that Opella’s headquarters and decision-making centers must remain in France, along with current production facilities. Industry Minister Marc Ferracci added that research and development facilities must also stay in place to safeguard employment and secure supply for French people.

If these demands are not met, the government plans to invoke a procedure for the control of foreign investment, ensuring that France's interests are protected.

Implications of the Strike

The strike by Sanofi workers is a significant event in French labor history. It highlights the deep-seated concerns among workers and politicians about the impact of foreign investment on domestic industries. The outcome of this strike will not only determine the future of Doliprane but also set a precedent for other companies considering similar deals.

As tensions escalate, one thing is clear: this controversy is more than just a business transaction; it's about maintaining control over critical national assets like healthcare. The fate of Doliprane and its manufacturing processes will be closely watched by both the public and policymakers as they navigate this complex issue.

Conclusion

The strike at Sanofi is a powerful expression of labor resistance against what many see as an erosion of national sovereignty. As negotiations between Sanofi and CD&R continue, one thing is certain: the future of Doliprane and French healthcare will be shaped by the decisions made in the coming days. The outcome of this controversy will have far-reaching implications for France's economy, its people's access to healthcare, and its ability to regulate its own industries.

References

• https://www.france24.com/en/live-news/20241014-painkiller-sale-plan-to-us-gives-france-major-headache
• https://www.reuters.com/business/healthcare-pharmaceuticals/workers-sanofi-strike-protest-consumer-health-unit-sale-union-official-says-2024-10-16/
• https://whbl.com/more-blog/
• https://www.bloomberg.com/news/articles/2024-10-11/sanofi-in-talks-to-sell-50-of-consumer-health-unit-to-cd-r-m24d2yls
• https://www.france24.com/en/tv-shows/business/20241014-pharmaceutical-giant-sanofi-looks-to-sell-consumer-health-unit-sparks-political-uproar