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French Unions Agree to Renault Job Cuts
Renault SA has reached an agreement with France's Force Ouvriere union that clears the way for the company to eliminate 7,500 jobs in the country by 2016 through attrition.
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Renault SA has reached an agreement with France's Force Ouvriere union that clears the way for the company to eliminate 7,500 jobs in the country by 2016 through attrition.
Renault also won the right to freeze wages this year and increase working hours by about 7%. The company has estimated the concessions will produce €500 million in annual savings, the equivalent of €300 per vehicle.
In exchange, Renault promised not to close any plants. It also pledged to boost its production in France to 710,000 vehicles compared with 646,000 units in 2011. The unions say the new total which includes 80,000 vehicles built for Daimler AG and Nissan Motor Co. would bring Renault's capacity utilization in France to 85%.
FO is now the second union to reach an accord with the company. The two labor groups represent 45% of Renault's unionized workforce in France above the threshold required for the contract to take effect. Of the two remaining unions, one is opposed, and the other hasn't divulged its position.
Renault's national works council is scheduled to vote on the deal on March 12.
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