Mexican Media Brands
PSA, Unions Near Deal to Cut Costs
PSA Peugeot Citroen is close to a critical agreement with its unions to reduce operating costs in France, Bloomberg News reports.
#labor
Share
PSA Peugeot Citroen is close to a critical agreement with its unions to reduce operating costs in France, Bloomberg News reports.
The news service says unions representing more than half of PSA workers in the country have agreed to support the company's plan to freeze wages and reduce overtime pay. In exchange, PSA would pledge to invest in French factories and give them more models to build.
Unnamed sources tell Bloomberg the labor deal is a necessary step in PSA's pursuit of a plan to raise €3 billion or more by selling 20% stakes in itself to the French government and China's Dongfeng Motor Corp. PSA's board will discuss the options today ahead of the company's third-quarter earnings report tomorrow, according to the news service.
General Motors Co., which acquired a 7% stake in PSA in March 2012, could exercise its right to exit the partnership if control of the company shifts. A Bloomberg source notes that an equity sale to Dongfeng might prompt GM to leave because the American company has a strong partnership in China with Dongfeng rival SAIC Motor Corp.
RELATED CONTENT
-
On the Management Side: Dealing with Rule Breakers
When an employee breaks the rules, what should his or her boss do about it?It’s an important question because the answer can affect the employee’s future behavior, his department’s morale—even a company’s relationship with a union, if one is involved.Every manager, therefore, should review his disciplinary methods periodically to make sure they are producing the most constructive results.
-
Denmark, 10 Other EU Members Urge Piston Ban
Denmark and 10 other member nations of the European Union have urged the region to allow them to end gasoline and diesel engine sales by 2030.
-
Targets of U.S. Aluminum and Steel Tariffs Declare Counter-Measures
As expected, the European Union, Canada and Mexico have announced a broad array of counter-tariffs in response to U.S. import taxes of 10% on foreign aluminum and 25% on foreign steel that went into effect at midnight.