PSA Peugeot Citroën has proposed a 3% overall pay rise for employees from the beginning of March.

Following a second round of pay negotiations, management has proposed an across-the-board salary increase of 1.7% for operators, administrative employees, technicians and supervisors, with a minimum raise of EUR34 (US$46), effective 1 March, an average 2% gain for production workers.

Also put forward is an increase in the overall budget for merit/promotion and seniority rises of 1% for operators and 1.3% for administrative employees, technicians and supervisors, allowing the group to continue offering promotions as part of the career development agreements.

The budget also includes increases related to the implementation of the Gender Equality and Motivation of Seniors agreements, a 2.2% increase in minimum guaranteed annual compensation to EUR20,950 ($28,390) from EUR20,500 ($27,780) and a minimum monthly starting salary of EUR1,486 ($2,014) for BPU multi-skilled production operators.

There is also a 1.7% increase in working hours and workstation inconvenience pay, effective from the beginning of March,  and an increase in the monthly bonus for supervisors to EUR90 from EUR78.

The CFDT, CFE/CGC, CFTC, FO and GSEA labour unions said they will consult with their members although the CGT has already indicated that it will not sign the agreement.

PSA said that in a business environment that is still difficult for the group, management’s proposals “offer the right balance between meeting employee expectations with regard to purchasing power and keeping labour costs in France competitive, which is a prerequisite for maintaining jobs”.