French metallurgy unions and employers have reached a salary increase agreement following a meeting in Paris.
The CFE-CGC union and the L’UIMM body representing metallurgy industries, whose automobile members form around 17% of its business, reached a compromise increase of 2.3%.
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The annual agreement between CFE-CGC and employers is a collective deal for engineers and executives’ minimum salary. Separate negotiations take place for blue collar metallurgy workers within each departement [county] in France.
A final figure of 2.3% is slightly less than the 2.5% originally demanded by CFE-CGC, but it appears to have averted the possibility of any potential industrial unrest.
“The UIMM has taken its responsibilities to move closer to the proposals of the CFE-CGC, which had claimed a minimum salary increase of around 2.5%,” said a statement from the French union.
The Paris meeting also agreed to look at several further social agreement issues for the 2011-2012 period.
“This figure of 2.3% is the result of a will and the possibility offered by the modest recovery in [business] activity, even if this remains mixed,” noted UIMM general delegate Jean-Francois Pilliard.
The CFE-CGC represents mainly white collar workers in the metallurgy field, of which around 40% are in the automobile industry.
Union sources indicated to just-auto near the end of last year that failure to reach an agreement “would compromise future scheduled negotiations.”
CFE-CGC said it is the principal union in Renault.
