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Renault Aims to Shed 7,500 Jobs in France
Renault SA has told its unions that the company wants to shrink its workforce in France by 7,500 employees, or 17%, by 2016.
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Renault SA has told its unions that the company wants to shrink its workforce in France by 7,500 employees, or 17%, by 2016.
Renault says it proposes to eliminate 5,700 jobs through attrition and the balance via early retirement offers, thus reducing annual fixed costs by nearly €400 million. In return, the company would promise no plant closings or forced departures in France.
Renault's production in the country dropped 18% to 530,000 vehicles last year as Europe's car market hit a 17-year low. The company predicts the region's sales will shrink 3% in 2013.
Last week Renault urged its unions to agree to a 6.5% increase in the factory workweek in exchange for a production increase to make vehicles for Daimler and Nissan. Renault is scheduled to present its salary proposal to unions next week.
The company has said it aims to align labor costs and productivity at its French plants with those at its more efficient facilities in Spain and the U.K.
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