Peugeot Plans to Widen Voluntary Lay-Off Scheme image

PSA Peugeot Citroen plans to lay off 6,000 European employees this year, and so it extends voluntary departure offers.

An anonymous source said that the company is rolling out its buyout program to more employee categories. Initially the program was aimed at for roles deemed overstaffed, but bow Peugeot Citroen extends it to other categories were staffing levels are enough.

Peugeot Chief Executive Philippe Varin, announced in September 2011 the overall target of European job cuts is 6,000, out of which 2,500 jobs at external suppliers and service providers, and 3,500 in the company.

PSA Peugeot Citroen has asked workers at the Sevelnord plant to agree to 3-year pay freeze, hundreds of job cuts and other concessions or face an imminent closure. These tactics were successfully applied at other factories such as General Motors’ Opel plant in Ellesmere Port, England and Fiat’s Pomigliano factory near Naples.

“This amounts to industrial blackmail,” said Ludovic Bouvier of the CGT, Peugeot’s biggest union. “They want us to set an example that workers in the rest of the group’s factories will eventually have to follow.”