Sources, Auto Information, Automobilnews
PARIS: The 4 foremost unions representing staff at Renault oppose its cost-cutting plans, union sources mentioned, including to the French carmaker’s restructuring complications.Loss-making Renault, which is 15% owned by the French authorities, has outlined 2 billion euros ($2.3 billion) in financial savings, together with through job cuts and reorganising its factories, to revive profitability.
Worker representatives solely have a consultative function within the plans, however rejecting them would complicate the duty for brand new Chief Govt Luca de Meo.
De Meo, who arrived in July, had referred to as on employees to again him in a current inner memo seen by Reuters, saying: “I want you to hold out this turnaround.”The CFE-CGC, CFDT, CGT and Power Ouvriere unions rejected Renault’s plans at a gathering with representatives of the agency on Tuesday, 4 union sources mentioned.
The CFE-CGC union confirmed its opposition to the cuts in a press release, saying it was not satisfied by the best way Renault deliberate to go about its plans even when it understood the financial imperatives.
Renault declined to remark.
The corporate has like friends been hit onerous by the coronavirus disaster, which pressured it to halt manufacturing earlier this 12 months whereas dealerships additionally closed briefly.
This exacerbated current issues with profitability, and De Meo desires Renault to provide fewer vehicles whereas bettering margins. The agency plans to chop 15,000 jobs worldwide within the subsequent three years, together with 4,600 in France.
Unions have rejected wide-ranging layoff plans by different carmakers in France earlier than, together with at Peugeot-maker PSA in 2012. This has not stopped them from going forward.
However PSA managed to get unions on board for subsequent competitiveness agreements, which included wage freezes.