A Second Labor Union Accepts Renault’s Deal image

Labor unions accepted Renault’s deal on pay and conditions which the company says will increase its competitiveness.

Renault previously announced it plans to cut 7, 500 jobs in its home market by 2016, almost 14% of its workforce in France, mainly through natural turnover, to freeze salaries this year, to lengthen average working hours by 6.5% and to win flexibility to switch employees between plants. If the labor unions wouldn’t have accepted Renault’s deal, the automaker would have been forced to shift part of the production out of France.

CFE-CGC, Renault’s main union, signed the deal last month, and today, March 7th, a second major labor union, Force Ouvriere, announced it has decided to sign the new agreement, offering the automaker enough support to validate the accord. The CFE-CGC accounts for 29.67% of the staff, while Force Ouvriere represents 15.62%.

“The project will be presented to the central works council on March 12,” Force Ouvriere representative Laurent Smolnik said.

The agreement has to be signed by at least two unions to be considered valid and the votes against must not exceed 50%. The CGT unions already announced it will not sign the deal, while the CFDT union was not reached for comment.