Paris: Workers at Moët Hennessy, the prestigious wine and spirits division of luxury giant LVMH, are set to launch strikes starting Friday, after the company canceled annual profit-sharing bonuses, prompting widespread discontent among employees. The action, organized by France’s influential CGT union, marks a rare instance of industrial unrest in the high-end luxury sector, which typically operates without public labor disputes. The walkouts are expected to affect several of Moët Hennessy’s iconic brands, including Hennessy cognac, Veuve Clicquot, and Moët & Chandon champagne.
The CGT has criticized the company for scrapping all profit-sharing bonuses for 2025, despite LVMH’s continued financial success. Union representatives have called the decision a sign of unfair treatment, demanding immediate negotiations and a “special Christmas bonus” for employees. Leaflets distributed by the union highlight growing frustration among workers, who argue that their contributions to the company’s luxury reputation and global profits are not being fairly recognized.
The initial strikes will begin at the champagne houses in Épernay and Reims, before gradually spreading to Hennessy production sites in Cognac and other facilities. The CGT has indicated that the industrial action could continue intermittently over the next two months if the company does not meet their demands. This marks one of the first coordinated, division-wide labor protests at Moët Hennessy in recent history.
The timing of the strikes coincides with a significant decline in the company’s financial performance. Moët Hennessy reported an operating profit of €524 million in the first half of 2025, down 33% compared to the previous year. Analysts note that while profits have fallen, the company continues to distribute dividends to shareholders, a disparity that has fueled employee frustration. The unrest adds pressure to the division’s leadership, including deputy CEO Alexandre Arnault, who assumed his role earlier this year amid the challenging market environment.
Luxury brands are rarely associated with labor disputes, as their high-value positioning often shields them from industrial unrest. However, analysts suggest that these strikes may reflect a broader tension in the industry, where workforce morale can be affected by profit distribution and economic pressures. The strike could disrupt production schedules, delay shipments, and affect the public perception of Moët Hennessy’s premium brands, particularly in key export markets such as China, where demand has recently softened.
The CGT has pledged to maintain pressure until meaningful negotiations take place, underscoring the seriousness of the dispute. How LVMH responds whether through compensation adjustments, dialogue with union leaders, or contingency measures will be closely watched by both employees and industry observers. The outcome of this strike may set a precedent for labor relations across the luxury sector, highlighting that even the most elite brands are not immune to internal unrest when profit-sharing and employee recognition become contentious issues.