With the roll-out of its Push to Pass growth plan and the upcoming expiry of the New Social Contract, PSA Group's management acted early to launch a new round of negotiations with employee representatives.
"The goal is to work together to build the group's future and reach an agreement that will support and sustain the group's new growth momentum," the automaker said in a statement.
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A round of negotiations will be held in May and June covering every aspect of the organisation, with a particular focus on R&D, manufacturing, change management, employee experience, new collaborative working methods, digitisation, quality of life at work, e-working, the inter-generational contract and social leadership.
A first meeting held on 11 May provided an opportunity to assess the impact of the New Social Contract and review the issues on the negotiating table in light of the group's challenges.
In October 2013, as part of work undertaken by the group to re-establish its financial and social balance, an agreement was signed between management and four trade unions (CFE-CGC, CFTC, FO and SIA-GSEA). This 'New Social Contract' represented an innovative employee relations strategy for the group, based on collectively defining the key drivers of the organisation's recovery and competitiveness.
The commitments set out in the agreement have been upheld: social dialogue has become more central to strategy, change is managed through the Human Resources Planning and Development (GPEC) programme, an intergenerational contract is in place and a growth and competitiveness dynamic is under way. A total of 995,000 vehicles were made in France in 2015, plant performance was improved via excellence and flexibility initiatives, 78% of R&D was carried out in France, additional discretionary profit-share payments were introduced in 2014 and 2015, average training amounted to 20 hours, and 2,200 people e-worked regularly. The New Social Contract has thus been one of the main driving forces behind the group's recovery.
With the Push to Pass plan, PSA Group is opening up a new strategic chapter, building on its financial recovery to move into a new phase of profitable and sustainable organic growth. As part of this new strategic plan, management and employee representatives are committed to building the group's future together, starting with this fresh round of negotiations to work out another agreement, to be dubbed 'New Momentum for Growth'.
The agreement should enable PSA Group to address new challenges in an unstable industry and social environment shaped by rapid, unpredictable upheavals.
PSA Group must leverage its operational excellence, performance and agility to protect itself, ensure its sustainability and preserve jobs. The New Momentum for Growth initiative is designed to support the group's aim of becoming a benchmark global carmaker on the leading-edge of efficiency and a successful supplier of mobility services.
Xavier Chereau, executive vice president, human resources, said: "Management and trade unions led the way in 2013 with the signature of the New Social Contract and I was delighted to kick off a fresh round of discussions on 12 May 20016. We will be working together to build PSA Group's future, give it new growth momentum and meet the objectives of our Push to Pass plan.
The next meeting will be held this week on Wednesday, 18 May.
