LIP affair

Lip, an old watchmaking manufacturer, was founded in 1867 by Emmanuel Lipmann, a watchmaker who established the company in Besançon. After World War II, the factory became one of the largest watch producers globally. Fred Lipmann, the founder's son who became known as Fred Lip after changing his name to avoid antisemitic policies during the Vichy regime, transitioned the company from craftsmanship to assembly line production.^[2]

In the 1960s, Lip faced financial difficulties due to competition from low-cost watches, especially from Asia. In 1967, Fred Lip sold 33% of the company to the Swiss firm Ébauches SA, part of the ASUAG, which later became the Swatch Group.

In May 1973, a workers' action committee (Comité d'action), inspired by the spirit of May 68, reassembled at Lip.^[3]

On 12, during an extraordinary meeting of the Works council, workers discovered plans for 480 layoffs ("480 to go") and a strategy to dismantle the mechanical division while retaining only the watchmaking sector.^[4] Workers immediately occupied the Palente factory, hiding a stock of 25,000 watches.^[4] The strike, led by CFDT member Charles Piaget and supported by Jean Raguenès, gained national prominence.^[4]

The workers began producing watches under their control to ensure "survival wages," popularizing the slogan: "It's possible: we make them, we sell them, we get paid."^[5] Direct sales of these watches at reduced prices angered the watchmaking network, prompting legal action.^[6]

On 29, a national march in Besançon drew 100,000 participants.^[7] Political figures, including Michel Rocard, and leftist groups such as the Ligue communiste révolutionnaire and the Gauche prolétarienne, demonstrated solidarity with the workers.^[7]

However, on 15, Prime Minister Pierre Messmer declared, "Lip is finished." Despite ongoing efforts, including negotiations led by Claude Neuschwander, the company struggled to survive.^[8]

The Lip Affair symbolizes a pivotal moment in French labor history, highlighting innovative labor movements such as autogestion. Although Lip was eventually liquidated in 1977, its legacy endures through cultural references and academic analyses.^[9]