Renault and representative labour bodies, CFE-CGC, CFDT and FO, have signed a trade union agreement for France until 2024.

The agreement is the result of several months negotiations, known as ‘Re-Nouveau France 2025’ and will be in effect for the period, 2022-2024.

“It demonstrates Renault’s strong commitment to anchoring the Group’s future industrial and R&D activities in electric mobility, connectivity, hydrogen and digital technology in France,” said a Renault statement.

Renault will base production of nine new vehicles – the majority of which are 100% electric – in France with the ambition of producing more than 700,000 models per year.

To this effect, the Group will assign the Renault ElectriCity hub with production of Megane E-Tech Electric, the future Renault 5 Electric, the All-New Kangoo Electric, a future electric SUV and a new vehicle that is still in its early stages.

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The Dieppe and Sandouville plants will respectively produce the new Alpine and New Electric Traffic. The Batilly factory will take on production of both the vehicle replacing Master and another from one of the Group’s partners.

The future 100kW electric motor and its entire value chain are assigned to the Cléon plant, while Le Mans will assume production of chassis work for the new vehicles.

In line with the Renaulution plan, the agreement also ensures skills needed to design electric and connected vehicles, as well as future mobility service, will be concentrated at French engineering facilities.

Finally, the agreement stipulates Renault will not close sites covered by the scope of the agreement (industrial, logistics, parts and accessories), nor will it shutter the technical engineering facilities in Lardy and Aubevoye.

At the same time, Renault will halve its tertiary office space in Île-de-France by 2025, to take account of new working practices.

The Group is hiring 2,500 staff in France during the agreement’s three-year span, of which 2,000 will be in factories and 500 in engineering and tertiary functions, with a push to continue the Group’s policy of hiring young recruits.

The Group will organise 10,000 training and retraining courses to prepare employees with the right skills for the new automotive value chain, in particular via the ReKnow University that will operate across several campuses across France.

The company will also oversee 1,700 voluntary departure packages in engineering and support functions during the duration of the agreement.

During the agreement, the Group commits to carry out annual wage negotiations that will reflect both the French labour market and the company’s financial situation,” added the Renault statement.

“Moreover, a first round of negotiations will be held in the first half of 2022 and incorporate a three-year profit-sharing scheme based on both the Group’s profits and profit levels of local establishments.

“By late 2022 at the earliest, social partners have also committed to reflect on the quality of life at work and hold further joint discussions on health and welfare coverage in order to modernise existing systems.”