Following a meeting with its works council on Tuesday, Renault has issued more details of an earlier-announced departure plan for up to 4,000 workers in France but insists it will “function solely on a voluntary basis”. It is also eyeing cuts at French subsidiaries and at operations elsewhere in Europe.
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The automaker is hoping 3,000 ‘overhead’ staff not directly linked to production plus about 1,000 employees from its Sandouville plant, including production staff, will take up the offer, which is open until 30 April. Sandouville makes the redesigned Laguna, sales of which have been slower than hoped, and Renault has been thinking of reducing production of that model to single-shift operation.
A second works council meeting is due on 1 October and the automaker, in the meantime, will continue discussing departure incentive details with unions.
The deal presented to the works council yesterday offered employees the chance to leave for another job or start their own business and employees who take up this offer before the end of 2008 will receive an incentive bonus worth six months’ salary in addition to their contractual redundancy payment’ four months’ salary if they accept before the end of February 2009′; and three months thereafter.
Additional ‘technical assistance’ will be available for persons wishing to create a business (financing, paper work, management course, or similar). They will also receive a business creation allowance of up to EUR12,000.
Employees eligible for their point-based retirement may take voluntary retirement with an additional allowance of three months’ salary on top of their contractual retirement package.
Redeployment leave is also on offer. This period during which the employee would be paid but would not work would be equal to the notice period plus three months and redeployment leave would run for a maximum period of nine months.
Employees would be able to undergo training to help them transfer to a new sector or specialisation, or to update their skills. They would be paid 100% of their salary during the period corresponding to their notice, and 65% the next 3 months. In addition to their contractual indemnities, a complementary bonus of three, two or one month’s salary would be paid depending on the date of the employee’s decision.
Renault also plans to reach an agreement with the French government to facilitate the return of foreign employees outside European Union (currently 4.6% of total staff) who consider the plan an opportunity to return to their home country. In this case, foreign employees would benefit from a career evaluation, training, and financial assistance of between 15 and 24 months’ salary.
The plan also includes part time work for end-of-career staff, as well as possibilities for long-term leave.
Information areas will be set up at the various sites to assist all interested employees, whichever departure category they choose. Those staffing these areas will have connections with specialised employment services to help new job seekers. Training may also be considered to help employees obtain different work outside the company.
Site works councils will inform and advise staff about the voluntary departure plan at the various Renault plants tomorrow, 11 September.
“Our aim is to assist employees who wish to depart voluntarily so that they leave Renault with a well-defined plan and operational plan. We wish to put in place everything necessary to facilitate their transition to a new activity under the best possible circumstances,” a spokesman said.
On 25 September, Renault will submit “a project for adjusting headcount” at subsidiaries in France and Europe to the European Group Committee for “an exchange of views and dialogue”.
