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Renault Nears French Labor Pact
Renault SA and its French unions could reach an agreement within days, the country's Industry Minister Arnaud Montebourg tells national radio network Europe 1.
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Renault SA and its French unions could reach an agreement within days, the country's Industry Minister Arnaud Montebourg tells national radio network Europe 1.
Renault presented a proposal to its unions on Feb. 20 that calls for a one-year wage freeze, a 7% increase in the workweek to 35 hours and the elimination of at least 7,000 jobs through attrition by 2016. In exchange, the company is offering to boost its domestic output by 180,000 vehicles.
Montebourg says both parties have made concessions.
Separately, the minister says without elaborating that France's other big automaker, PSA Peugeot Citroen, needs a long-term alliance with another carmaker to ensure its survival. PSA and General Motors Co. formed a purchasing and product development tie-up in February 2012.
Montebourg also insists France won't return to a big scrappage scheme to revive auto sales. But he supports the idea of offering incentives to consumers who trade in older diesel cars for lower-emission models.
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