Champagne Battles to Fix Worker Conditions

Champagne is finding out the hard way that poor working conditions and luxury do not match well in the eye of the consumer.

The economic backlash to its harvest conditions – exposed in the press after five people died while picking and a prosecutor opening two cases of human trafficking over worker conditions – has been harsh. September sales have fallen by 21.2 percent year on year – a 7-million-bottle sales drop.

The problem for the Comité Champagne (CIVC) is the lack of solutions to improve future conditions in Champagne's vineyards.

After the French authorities shut down four substandard accommodation sites, and opened the human trafficking cases, the CIVC opted for radio silence. All press was referred to an interview Maxime Toubart and David Chatillon, co-presidents of the CIVC, had given to the local Union newspaper, in which they roughly stated that they were deeply shocked by what had happened and that Champagne would act to prevent similar failures in the future.

On October 16, the CIVC finally issued a press release addressing the harvest problems. In short, the CIVC reiterated its "commitment to work with government agencies and worker unions to improve working conditions of harvesters and avoid future picker abuse".

The press release pinpointed four areas requiring change: the housing situation; the pickers' health and safety; a service provider framework; and recruitment issues. A working group has been set up to invesatigate these issues, and this group will work closely with government agencies and the unions.

The press release repeatedly mentioned concrete actions, to be put in place before the next harvest, but on closer look, it quickly became clear that the only concrete action would be the creation of the workgroup, as on all four points the CIVC is hamstrung by French law.

Champagne's biggest workers' union, the Confédération Générale du Travail (CGT) has accused the CIVC, in a press release on October 24, of only focusing on protecting the employers' rights, rather than finding real solutions for the working conditions of the (mostly) foreign harvest force. The CGT further blamed the CIVC for only issuing the press release as part of "a communication campaign aimed at passing over the sorrowful news stories and the scandalous practices commonly used this last harvest to preserve the end-of-year sales".

The last quarter of the year is responsible for at least 40 percent of annual Champagne sales, and if September is anything to go by, the Union des Maisons Champagne (UMC, which represents the big houses) and the Syndicat Général des Vignerons (SGV, which represents growers) will be keen to curb future losses.

The CIVC has been squeezed between a rock and a hard place because of several internal power struggles, which have destabilized the precarious balance between growers and houses.

In the past decade, houses have significantly grown their market share of champagne expeditions (from roughly 66 percent in 2012 to 83 percent in 2022), which means a greater reliance on purchased grapes, as the houses' vineyard share remains roughly at 10 percent – as it was in 2012.

As a result, average grape prices have risen by 25 percent, going from €5.65/kg in 2012 to €7.03/kg in 2022 according to the CIVC. Rising grape prices have prompted winegrowers – who previously produced and sold their own Champagne, either independently as Récoltant Manipulant (RM) or in cooperatives as Récoltant Coopérateur (RC) to stop their wine production and instead sell their grapes to the houses. The past decade saw a drop of 15 percent of RM and 23 percent of RC Champagnes.

Secondly, there is a power struggle between the houses, as a steady grape supply is needed to grow market share, so no-one wants to refuse grapes out of fear of losing a supplier to a competitor. 

Lastly, because of the price war between the houses, grapegrowers have seen their income per hectare increase by almost a quarter in the past 10 years. The CIVC's average grape prices show income per hectare went from €67,800 in 2012 (based on a yield of 12,000 kg/ha) to €84,360 on the smae yield level.

Grower gains

Growers have been enjoying the increased income, and are therefore extremely reluctant to voluntarily cut into their profit margins. Moreover, as grapegrowers now outnumber grower-producers by three to one, they have taken over the SGV, meaning they are unlikely to endorse anything that would cause a cut in income, such as stricter harvest regulations.

To recap: there is the UMC on one side, whose members rely on grapes to maintain their market share, and who by buying in the grapes are not legally responsible for the harvesting conditions. And there is the SGV on the other side, ruled by growers relying on contractors, often chosen for their low-price tag, who in turn therefore opt to subcontract to cheaper foreign subcontractors. By doing this they free the growers from any legal repercussions related to the harvest conditions. In other words, it is unlikely that any grower or house will face severe legal prosecution for what happened this harvest. Houses can deflect blame onto growers, and growers can do the same thing to the contractors used to pick their grapes.

With this in mind, what tangible measures imposing real change are likely to adopted in each of the four areas? Probably very few.

Regarding the housing problems, French law has strict housing regulations for seasonal workers, which this year were significantly relaxed.

The maximum number of seasonal workers per room was increased from six to 10 people. Instead of having to provide 9 square meters per worker, 4.5 square meters is now enough. One sink per six people (instead of three) is now required and a shower and toilet may now be shared by eight people (instead of six).

There is still a small group of local pickers, not requiring accommodation, but the bulk of the pickers are non-local, seasonal workers, employed by service providers who also look after their accommodation needs. While putting up seasonal workers in tents is not allowed under French law, exceptions may be granted for the summer period, including harvest.

As most people assigned to these sites are foreign and ignorant of French regulations, and controls are rare, the rules are generally not respected. 

Regarding the working conditions, it is possible that the CIVC workgroup will recommend asking pickers to provide a medical certificate as proof of good health (a common practice in France when engaging in physical activity). They will probably also reinforce guidelines already set out by the SGV this year, such as providing workers with water or deferring picking hours in line with the weather conditions.

Nevertheless, these guidelines cannot be enforced – unless they are included in seasonal working condition regulations or the yearly harvest working hour rules, and it unlikely that they will be followed by subcontractors who manage most of the picking.

When it comes to subcontractors, the CIVC press release acknowledges that service providers are essential in today's market. The solution, touched upon in the press release, is to work closely with the social security agency (MSA) and the regional government agency in charge of working conditions to propose a charter for service providers in Champagne, which will include a directory of socially committed contractors. 

However, the CIVC cannot impose suggestions set out in any such charter and a recent case of human trafficking during the Bordeaux harvest, where such a charter had already been adopted, shows this solution is not necessarily effective. It may be more effective to forbid subcontracting in the wine industry, but that would require a change to the French law.

The last point, facilitating the recruitment process, will probably result in the request for the government to add the Champagne vineyard worker to the list of jobs with high recruitment needs, which cannot be currently met due to short supply. While there is a real recruitment issue for permanent vineyard staff, it is unlikely that this measure will solve the current harvest crisis, which according to the CGT will only be solved if working conditions and salaries of harvesters increase.