Renault cut 2500 jobs in union pact image

Seeking to increase its productivity and increase its savings, the French automaker managed to cut down its workforce by 2500 in the first year of a deal with the country’s unions.

The head of French personnel, Jean Agulhon, announced in a press brief that over the course of the three-year agreement it would ultimately reduce the French workforce by 7500 – meeting a savings goal of 500 million euros ($690 million) at the end.

“We’re at about one-third of the objective”, said Agulhon. “It’s the first time that French hourly wage costs have fallen thanks to this deal,” added Marie-Francoise Damesin, human resources chief for the Renault-Nissan alliance.

The deal was signed between the carmaker and three of its main French unions, with Renault promising to increase domestic production to 710,000 vehicles – by about one third if the workers accepted early retirements and other job cuts to reduce plant expenditures.

The carmaker also vowed to protect its French production facilities if the unions accepted more work hours, reduced pay rises and the 7500 job cuts by 2016. The carmaker also said the early retirement plans are attracting around 80-90 % of the eligible workforce and may even lead to exceeding the job cuts plan.

Via Reuters