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Renault Would Swap Plant Guarantees for Labor Cuts
Renault SA confirms it has offered to commit to keeping all its factories in France open for an agreement with its unions for lower pay and less restrictive work rules.
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Renault SA confirms it has offered to commit to keeping all its factories in France open for an agreement with its unions for lower pay and less restrictive work rules.
Renault workers fear the company might respond to plunging European sales by closing a French plant, as rival PSA Peugeot Citroen plans. But doing so would be difficult for Renault, in which the French government owns a 15% stake.
The company wants to reduce structural costs, thus lowering its breakeven point by 200,000 units to annual sales of 2.4 million. Renault has said it needs labor concessions to reduce wages and boost productivity to achieve that goal.
The company has declared that it wants its French factories to match the efficiency of the facilities Renault and alliance partner Nissan operate in Spain and the U.K.
Renault says it has proposed terms to make it easier to move hourly workers to other plants temporarily to align production to demand. The company also wants to consolidate back-office functions for its factories by creating two regional centers to handle support services.
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