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Renault Presents Contract Offer to French Unions
Renault SA says it is awaiting a response from its French unions to a contract proposal that includes boosting auto production in France by one-third and not closing any plants there.
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Renault SA says it is awaiting a response from its French unions to a contract proposal that includes boosting auto production in France by one-third and not closing any plants there.
In exchange, Renault wants a one-year wage freeze, a 7% increase in the workweek to 35 hours and elimination of at least 7,000 jobs through attrition by 2016. The company said last week that these actions would cut its production costs by an average €300 per vehicle.
Renault had previously disclosed most of those terms. But it is now offering to boost French output by 180,000 units, up from its initial proposal of 80,000 units. The latest proposal would bring the company's total domestic production to 720,000 units by 2016, including 80,000 units for Renault's venture partners.
CEO Carlos Ghosn pledged last week to postpone 30% of his performance bonus until 2016 if unions accept Renault's proposal. Last year that bonus was €1.6 million.
The company needs the approval of unions representing at least 30% of its hourly workers to enact the contract.
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