Renault and French Labor Unions Close to Labor Agreement image

Renault and the labor unions in France could reach a labor deal in the following days, according to France’s industry minister.

Renault tries to make labor unions accept several measures, among which transferring workers between sites and cutting 8,000 jobs in the country in the following three years. Industry Minister Arnaud Montebourg, who has been trying to find solutions to the wave of plant closures and layoffs as the level of unemployment in France reached 15-year highs, said that the two parties have made concessions.

“I think it’s on the way,” Montebourg said when asked if an agreement was likely, adding he thought a deal could come “in the coming days”.

About PSA Peugeot Citroen, the minister said that the automaker will have to make a long-term alliance with another automaker to be able to secure its future. Peugeot already has an alliance with GM under which the two companies are developing three joint vehicle programs. The minister reminded reporters the fact that the government has no plans to buy a stake in Peugeot, which in 2012 suffered its biggest-loss ever.

Montebourg added that there will not be a return to a general scrappage bonus, nor will the government rise diesel fuel taxes to match them with gasoline.