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Renault Finalizes French Union Pact
Renault SA has signed a three-year contract with its unions, as expected, after nearly nine months of bargaining.
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Renault SA has signed a three-year contract with its unions, as expected, after nearly nine months of bargaining.
The accord will allow Renault to freeze wages for one year, increase working hours 7% and shed 7,500 jobs through attrition by 2016. The company estimates the concessions will cut annual costs by about €500 million.
In exchange, Renault promises not to close any plants in France until 2016. The company also agreed to invest €1.1 billion to boost production there by one-third to 710,000 vehicles, thus bringing factory utilization to 85%.
That pledge includes building build 80,000 vehicles per year for Daimler AG and alliance partner Nissan Motor Co. The company says it could reveal details of the models and factories involved by as soon as this summer.
The pact was ratified by unions representing nearly two-thirds of Renault's hourly workers.
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