PSA Peugeot Citroen’s largest union has criticised what it claims is French government inaction as the automaker insists it will continue with plans to shutter the Aulany plant near Paris in 2014 coupled with the loss of up to 8,000 jobs.
There had been some speculation today (24 April) the plant could close as early as this year, as the factory has seen production slashed since January with an almost continuous strike paralysing large sections of the site.
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A series of top French government Ministers including the President, Prime Minister and Economic Redevelopment Minister, queued up last year to protest against the cuts labelling them as ‘unacceptable and a ‘shock,’ but it appears the CGT union is growing increasingly dissatisfied with what it sees as foot-dragging from the politicians.
“Of course, Monsieur Montebourg [Arnaud, Economic Redevelopment Minister] said the PSA plan was unacceptable – unfortunately this declaration has not been followed [up],” CGT Works Council representative, Bruno Lemerle, told just-auto from outside the manufacturer’s headquarters in Paris.
“On the contrary, the government has not made any serious conditions. Today, we ask how is the French government reacting.”
The union leader was speaking outside PSA’s Avenue de la Grande Armee offices in Paris, where a shareholders meeting was taking place and maintained a debate was occuring surrounding the possibility of management receiving EUR30m (US$39m) in shares.
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By GlobalData“We consider this unacceptable,” he said, “where there are thousands of jobs to be lost, where there is no increase in salary in 2013, it is a freezing of salary.”
However, PSA refuted the CGT’s claims concerning the EUR30m in shares to management, insisting nothing had been decided.
“We are not giving shares to management,” a PSA spokeswoman told just-auto from the headquarters in Paris. “We are just taking measures to make it possible in the case we would plan to do so.
“It is very usual for French companies – it is a way to keep your best workers and talent.”
The PSA spokeswoman also dampened speculation the Aulnay plant could shut earlier than planned, maintaining: “Nothing has changed on our agenda – we still plan to stop production in 2014,” she said.
“We need C3s produced there. We need our workers to keep working.”
The CGT spokesman added only between 30 and 50 vehicles were being produced at the Aulnay plant each day as ongoing strikes, including sympathy action from nearby motorway toll workers who periodically let drivers pass through free of charge, take effect.
PSA today posted revenue down 6.5% to EUR13bn (US$16.9bn) for the first quarter of this year, with the automotive division sales also falling 10.3% mirroring a 10% contraction in the European market.
