A major Renault union is throwing its weight behind the French State’s move to reinforce double voting at the automaker two days ahead of a crunch AGM at the manufacturer’s headquarters in Paris.
Last week, France’s State share body (Agence des Participations de l’État) said it had formally increased its stake in Renault to almost 20% despite the automaker’s demand Paris revert to its previous 15% holding.
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The French State’s move to up its stake in the automaker is based on the Loi Florange, designed to allow those holding shares for at least two years to be granted double voting rights.
However, any move to oppose the double vote has met with firm rejection by the CFE-CGC union’s metalworking division, which strongly backs the Loi Florange.
“The CFE-CGC will oppose the resolution backing ‘one share, one vote’ and will support the implementation of the Loi Florange,” said a CFE-CGC statement.
“This will allow the French State to guarantee its influence in the running of our group and thus ensure Renault is anchored in France.
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By GlobalData“Following our commitment when we signed the ‘competivity’ contract, guaranteeing Renault’s increase in its activities in France, the CFE-CGC has no doubt the motivation of the State in this operation has the same objective for the business and its employees.”
Renault directors however, have urged CEO, Carlos Ghosn to ensure the “balance” between the two main shareholders be maintained.
