PSA’s Labor Unions Accept the Restructuring Plan image

Five out of Peugeot’s six labor unions accepted the company’s plan to cut 11, 200 jobs in France and close the Aulnay plant in order to cut losses.

Five labor unions favored Peugeot’s proposal to cut 17% of its workforce in France and close the Aulnay plant, near Paris, according to Franck Don, the head of the CFTC union at PSA. The restructuring plan was first announced in July and since then the automaker has been negotiating and waiting for the unions’ approval.

On April 26th, a court in Paris rejected a bid by the CGT and SUD unions which sought to block the restructuring plan saying that the severance packages offered for the job cuts were not enough for employees and that the company has not respected the legal framework for such measures. Last week, PSA’s CFO Jean-Baptiste de Chatillon said that the company might close the Aulnay plant by the end of this year instead of 2014, because the strikes disrupt production.

Production at the Aulnay plant has been affected by the CGT union’s strike and facility now produces almost 50 vehicles a day, compared with its previous daily capacity of 250 vehicles. Peugeot reported first quarter revenue down 6.5% to 13 billion euro as the European market continues to fall.