A significant French PSA Peugeot Citroen union says it looks likely the automaker will secure virtual majority backing for its cost reduction plan, envisaging a salary freeze among other measures.
The Syndicat Independent de l’Automobile (SIA), representing around 15% of staff, has given PSA the green light for its plans that include pay increases to be frozen next year, with “moderate and defined” rises for 2015 and 2016.
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In return, PSA has offered to commit to a 1m annual vehicle volume in 2016, assuming 15m units will be sold in Europe, coupled with a pledge not to close any factories during the next three years.
“We will sign this agreement even if all the sections of our company have not expressed a favourable opinion,” SIA central delegate, Serge Maffi, told just-auto from PSA’s Tremery engine factory in Provence. “We will have [in total] largely 50%.
“It means guarantees on French industrial sites beyond 2016. What we don’t want is more large redundancies like the closure of Aulnay.
“It is in this spirit we committed ourselves on this new social contract.”
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By GlobalDataOther unions such as the Force Ouvriere and the CFTC are also believed to have lent the PSA plan their support, but it appears the hardline CGT labour body is holding out against inking the deal.
Maffi estimates the combined votes of unions in favour of PSA’s plan could see a “largely” 50% vote in favour, with the union leader insisting there would be no wage cuts as part of the agreement.
“It is a freeze of salaries – it is not a reduction,” he said. “That is important – it is very important to underline that – but there will be a freeze and a number of measures to reduce work cost.”
Pressed as to whether PSA would return with more productivity requirements should it secure union approval, the SIA pointed to its members’ preoccupation with ensuring a stable future.
“We hope this will be the last time, but we have all in our heads the fears of the workers for the future,” said Maffi.
“Today, workers want to have guarantees for their factories and centres of research and development. It is a preoccupation which is very important.”
PSA is due to hold its next Works Council in Paris this Thursday (24 October), after which any agreement or otherwise should become clearer.
PSA, which has previously inidcated it is optimistic unions will sign the deal, is proposing a production launch of at least one new model in each assembly plant during the 2014-2016 period and expanding the commitment to maintain these plants in operation beyond the 2016 medium-term plan.
Neither the CFTC nor the CGT were immediately available for comment.
