Renault is inching towards full union acceptance of its productivity deal with the agreement in principle today (6 March) by a second major union to accept proposals that include 7,500 redundancies in exchange for increased volume.
The automaker’s largest union – the CFE-CGC labour body representing 30% of the workforce – has already agreed to the new contract – a percentage figure that could trigger a deal – but Renault is looking for a much higher take-up to validate the contract.
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To that end, Renault will have been heartened by the Force Ouvriere union’s decision to ratify the agreement, bringing total worker approval to 45%, but any contract will still have to be agreed at an official Works Council to take place on 12 March in Paris.
“We have just come out of the union [meeting] today in Paris [with the] metallurgical federation,” Force Ouvriere automobile federal secretary, Jean-Yves Sabot, told just-auto from France. “There were representatives of all our sites – 35-40 [people] present around the table with a mandate to sign.
“Obviously there will be a better situation in signing this agreement then not signing. There are commitments to volume which talk about 710,000 [vehicles] and 820,000 after 2016.
“That will allow us to fill the sites to 85%, which is the threshold of profitability, so it is an interesting plan for the French automotive industry.”
Renault says in exchange for productivity approval, it will agree to the increased volume and no factory closures, although there will be a salary freeze and 7,500 redundancies.
“Force Ouvriere said it will sign – that is what happened today,” a Renault spokeswoman confirmed to just-auto from the Geneva motor show. “What will happen next is we are waiting for the other two unions. “[The] next step is we have to present the agreement…in a Works Council – afterwards we are going to be able to sign.
“The date of meeting is 12 March in Paris, which I can confirm. Then we are waiting for a date for a final signature. Now we have these two labour unions, we already have the 30%.
Two major Renault unions have yet to sign, the CFDT and CGT, although as a French labour body told just-auto: “It is not a big secret the CGT will not sign.”
