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.
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.”
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By GlobalDataRenault 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.”