PSA Peugeot Citroën says it has got a majority of labour unions to sign up to its 2016 pay round.
The PSA management has proposed a total merit increase budget of 1.25%, with an across-the-board salary increase of 0.6% for production operators.
Go deeper with GlobalData
Four French trade unions, CFE/CGC, CFTC, FO and GSEA, have so far signed the agreement, and a fifth, CFDT, "will make its decision in the coming days", according to a statement issued by PSA.
Entered into by a majority of the unions, the agreement "attests to the quality and maturity of PSA's approach to employee relations, a critical asset for driving the company's performance", PSA said.
In addition, under the discretionary and non-discretionary profit sharing agreement signed last year with five trade unions – CFE/CGC, CFDT, CFTC, FO and GSEA – PSA said it pledged to give employees a stake in its results. Acting on this commitment, it will offer a total average payout in 2016 of EUR2,000, the highest in a decade.
In line with this agreement, PCA France employees will be awarded discretionary profit shares in respect of 2015, to recognise their contribution to the successful completion of the 'Back in the Race' plan. They will also receive an exceptional bonus of close to EUR700, directly linked to the Back in the Race results.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCommenting on the trade unions' signature of the PCA France pay agreement, Xavier Chéreau, Executive Vice President, Human Resources said: "At a time of very low inflation, we have proposed a wage policy that rewards both individual and collective performance. My goal is to align the company's financial interests with the interests of its employees, and now that PSA Peugeot Citroën is back in the race, the company needs to unleash its full potential in order to ensure its long-term growth."
