A satellite merger seems to be in the pipeline. The Société Européenne de Satellites (SES), of which the Luxembourg state is the largest shareholder, confirmed last week that discussions with the American company Intelsat, headquartered in the Grand Duchy, are underway. However, no degree of certainty was given as to whether the merger will actually go through.
The Independent Luxembourg Trade Union Confederation (OGBL) has now reacted to the news by pointing out in a statement that “mergers generally engender job losses”. The union further reveals that it is “concerned” about the fate of the 650 employees at the Luxembourg site.
A major restructuring process is already said to be underway at the SES site in Betzdorf. Rumours of the potential merger have been circulating for “several months already” and management is allegedly “preparing the ground by embarking on a new large-scale reorganisation process”, notes the OGBL.
SES CEO Steve Collar already officially informed the 650 employees in Luxembourg that the company is currently undergoing a profound transformation with the aim of becoming a market-driven organisation adapted to its purpose.
According to the OGBL, middle and senior managers have already been “gradually offered new positions, but also amicable departures” in recent weeks. The union also recalls that in recent years, SES has already “gone through a rather troubled period” with a restructuring in 2020 that resulted in a job retention plan in August that year. This plan was renewed in 2022.
This “did not prevent SES from opening a subsidiary in Bucharest in 2020", further laments the OGBL and argues that this branch could have been located in Luxembourg.
In this context, the OGBL appeals to the state shareholder in general and to Prime Minister and Minister for Communications and Media Xavier Bettel in particular “to take responsibility”. The union wants them to play an active role in negotiations and secure jobs in Luxembourg. As the government holds 33.3% of voting rights on the SES board, the OGBL believes that “guarantees must be demanded so that there are no staff cuts and that SES remains a majority shareholder in the new entity that will result from the merger”.
