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Michelin Seeks New Labor Deals in France
Michelin & Cie plans to reach new labor agreements with French unions, allowing the tiremaker to operate its plants more flexibly and better adapt to changing demand.
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Michelin & Cie plans to reach new labor agreements with French unions, allowing the tiremaker to operate its plants more flexibly and better adapt to changing demand.
The pact allows Michelin to ask employees to work extra days when tire orders are strong to compensate for days off when demand was low.
CEO Jean-Dominique Senard tells reporters after the company's annual meeting that workers have agreed to the new rules at three of its 17 factories in France. Michelin would like to implement the new contract at the remaining facilities, he adds.
The company says weak tire markets have slashed capacity utilization at its European plants to 70% for car tires and as low as 50% for truck tires.
The new labor agreement would help Michelin cope with fluctuating demand without shedding workers, according to Senard. He says the company has no plans to close factories in France.
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