Renault’s CFDT union has thrown its weight behind the French state’s decision to temporarily up its stake in the automaker from 15% to nearly 20% this week.
The move has raised a few eyebrows with Renault not appearing to need any financial boost, but Paris insists increasing its share for six months is “perfectly in line” with the “new doctrine” of the State as shareholder.
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“The announcement by the French state of a temporary increase in Renault capital so as to defend the double vote right for loyal shareholders is a move in the right direction,” said a CFDT statement.
“For the CFDT, double voting rights go hand in hand with a French state that does not distance itself from capital and which is a player in the governance and industrial development of Renault and the automotive sector.
“The CFDT will continue to promote a business management where all parties; staff, suppliers, investors, shareholders, customers, NGOs [and] local authorities, are taken into account in the choices made by the organisation.
“Giving more weight to those who speak for the long term is an asset for the sustainability of Renault.”
The move – originating in last year’s adoption of the Loi Florange – aims in the view of the French government to “reconquer the real economy” and allows those holding shares for at least two years to to be granted double voting rights.
The state maintains this is a way to encourage investors to keep hold of shares and to increase the influence of shareholders in the long term.
