Authorities at the European Commission (EC) say they are ready to sit down with the French government and discuss any potential aid for workers affected by PSA Peugeot Citroen’s huge redundancy plans.
The French automaker’s decision to slash its workforce by up to 8,000 and completely close the Aulnay plant, has prompted a flurry of political activity both in Paris and Brussels in an attempt to defuse the potential impact of PSA’s decision.
Go deeper with GlobalData
“I said the EC was willing and ready to sit down with the French authorities to discus any requests they might like to make,” EC Employment Commissioner, Andor Laszlo spokesman, Jonathan Todd, told just-auto from Brussels.
“There are two possibilities: either money from the European Globalisation Fund, from which PSA has already benefited and Renault in the past and the European Social Fund, but the ball is in the court of the French authorities. The request has to come from the French government.”
The EC spokesman noted the Commission had previously granted EUR24m (US$30m) to Renault though the auspices of the Globalisation Fund.
Both schemes depend on national governments first granting aid to industries in a way acceptable to Brussels, which then reimburses the money for use in areas such as new skills training, job advice and entrepreneurship.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, the financial aid is not a blank cheque as Todd outlined: “We expect PSA to comply with its obligations under European social legislation, especially information, consultation, Works Councils and collective redundancies,” he said.
“It is up to the French authorities PSA complies with the French national law that implements that European law in France. There is no reason to think they would not do so.”
PSA’s announcement of mass lay-offs comes as automakers across Europe radically reassess their workforce needs in the teeth of plunging consumer confidence, over-capacity and falling sales, issues that have reached the upper echelons of political power in Brussels.
“Laszlo is worried about the unemployment levels across Europe, particularly youth unemployment,” said the Commissioner’s spokesman.
“The automotive sector is one sector that has been particularly hit by the crisis.”
In addition to PSA’s news it would close Aulnay, drastically reduce headcount at its Rennes plant and cut non-assembly workers by 3,600, Fiat today [18 July] revealed it would close its Panda-producing Pomigliano d’Arco plant near Naples for five consecutive weeks from 23 July.
