Valeo’s CFE-CGC union is requesting the supplier think again concerning what it claims is its 1.2% pay offer.
The labour body has just concluded its annual wage bargaining negotiations with Valeo and is asking for a better settlement and one which can be backdated to 1 January this year.
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“It is difficult for the CFE-CGC to explain to all its activists, such minimal salary policy, given the good financial results of the Group, the major growth announced and a complete gap with the policy of paying dividends,” a union statement said.
“The CFE-CGC can only warn, that for a Group named ‘Top Employer 2012,’ such a pay policy will lead to real demotivation between Valeo and its staff.”
Valeo is confirming it has concluded its yearly wage negotiations, but is declining to name a percentage increase, insisting it is waiting for all its 13 divisions or legal entities as it refers to them to respond formally.
“The annual pay round has been completed and we are waiting to hear the position by half of the legal entities,” a Valeo spokeswoman told just-auto from Paris. “The unions are meeting to determine the position of the proposed agreement – when they agree we will be able to confirm the figures.
“We can’t make any comment because it depends on the position of the unions, which varies from one legal entity [to] another.”
Last month, Valeo posted 2012 operating margin up 3% to EUR725m (US$943m) with sales rising 8.2% to EUR11.8bn.
“In 2012, our order intake reached a record high of EUR15.8bn and our operating margin increased 3% year on year to EUR725m, despite economic headwinds in Europe,” said Valeo CEO, Jacques Aschenbroich.
