Valeo says it will keep all its sites in France open with no compulsory redundancies in the next two years.
The French supplier has signed a majority agreement for competitiveness and collective performance with French unions, CFE-CGC and FO.
Three months ago, faced with an automotive sector severely impacted by the crisis caused by the pandemic, Valeo’s management started discussions with labour organisations aimed at preserving the competitiveness of its sites in France.
Valeo notes the Agreement for Competitiveness and Collective Performance, which is the fruit of eight rounds of negotiations, will reduce payroll costs and preserve the competitiveness of the Group’s French operations, with no impact on jobs.
In the agreement, Valeo has made what it says is a “firm commitment” to keep all its sites open and refrain from any compulsory redundancies in France during the next two years.
“We have chosen the collective bargaining route in order to involve the labour organisations in the decisions that need to be taken in response to the crisis,”said Valeo chairman and CEO, Jacques Aschenbroich.
“The results of these negotiations show this was a wise choice. And, as we have done during the past ten years, a period during which we have invested almost EUR2bn (US$2.4bn) in France, we will continue to invest in new technologies such as 48V.”
Valeo employs around 13,500 people in France across 23 plants and 14 R&D centres.