Renault Begins Negotiations With Labor Unions in France image

Next week Renault will open negotiation with the labor unions aiming at a national deal on pay and new conditions to increase productivity.

Wednesday, October 31st, Renault said that it needs a new deal amid shrinking European auto demand and that negotiations will begin on November 6th.

“A new deal is necessary to enable a sound and permanent foundation for manufacturing, research and development and services to be maintained in France,” said Renault.

Last month, Chief Operating Officer Carlos Tavares said that Renault is trying to reach a new union agreement to increase domestic productivity. Renault and other automakers in Europe are preparing to reduce fixed costs and cut production capacity even more, as they begin to lose the battle with the sustained slump in the European auto market, which has dropped a further 7.2% so far this year.

Renault, which is 15% owned by the French government, managed to face the economic crisis without closing a single plant in France. Now the automaker wants his employees to sign up to benchmarking deals to match production costs with cheaper plants owned by the company, located in Spain, Palencia and England.