Renault France and three of its major unions have inked the Cap 2020 agreement outlining the future direction for the automaker, although the more militant CGT labour body has condemned the deal as “bad for the staff and bad for the business,” in a wide-ranging document outlining its grievances.
“Our previous agreement, signed in 2013, made a major contribution to the group’s growth,” said Groupe Renault chairman and CEO, Carlos Ghosn. “Three years on we can say all of its commitments have been met or bettered.
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“In preparing for the future, Renault in France takes up a sustainable performance dynamic grounded in workforce-wide involvement, and in the realisation strong performance worldwide depends on strong performance in France.
“I would like to thank all the unions involved in the process; their commitment proved instrumental in the development of a sound joint project, and confirms the strength of our labour relations dialogue.”
With the new deal, Renault is committing to an average production volume equal to that of last year, with the assignment of at least one new model or platform per body-assembly plant from 2017 to 2020 and pledges on annual average production volumes for powertrains and chassis.
Renault will also invest EUR500m (US$529m) in plant modernisation, as well as a focus on French-based engineering to form the hub of a worldwide, group-wide network of technology development units.
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By GlobalDataWhat the manufacturer refers to as “substantial R&D and CAPEX outlay,” including annual investment of at least 8% of Group sales revenues is equally scheduled.
Specifically, Renault will be hiring 3,600 people on permanent employment contracts and 6,000 on youth employment schemes. Some 40% of the people taken on through permanent employment contracts throughout the duration of the agreement will be recruited from among those on the youth employment programme.
With the Renault France – CAP 2020 agreement Renault also undertakes to bring in work-time organisation “better adapted to workload conditions and capable of improved response to customer expectations and shifting market conditions.”
It also maintains working conditions will be improved through measures including a “zero-accident safety policy, working environment renovation, participative management, wide-reaching dialogue on work quality,” but such assurances have been met with withering scorn by the powerful CGT union.
“The CGT will not legitimise backward steps for workers,” said a CGT Renault statement. “It will not strengthen management in its pursuit of unravelling social agreements obtained by previous generations in the sole interests of shareholders and business directors.
“On the contrary, the CGT will continue to play its role as a trade union for employees, to build a balance of power allowing them to obtain what belongs to them from the riches they create. And in fact, make this deal inapplicable.”
However, the more moderate CFE-CGC union struck a more conciliatory tone, noting the agreement treated areas which were previously “absent or insufficiently dealt with,” such as engineering, life quality at work and management.
“Moreover, it [contract] contains commitments to activities, assignments and recruiting allowing for a calm next three years,” added the labour body. “Beyond those key aspects, what is new about this deal is the introduction of a social dialogue which will become a common thread throughout its duration.
“The CFE-CGC at Renault wants to believe it will allow the shared building of a business model in favour of a new dynamic in dialogue.”
