Renault gets approval from third labor union for job cuts image

Renault gained the backing of a third labor union to implement its restructuring plan which involves eliminating 7,500 jobs and freezing wages.

“We agreed to sign the deal,” Fred Dijoux, the leader of the CFDT union at Renault, told Bloomberg. Two other unions, the FO and CFE- CGC, have already said they would support the deal.

The three unions represent about 64 percent of Renault employees. Under French law, a company needs the support of unions representing at least 30 percent of the staff for a collective bargaining agreement to be valid.

The deal allows Renault to reduce its workforce in France by 17 percent by 2016 through attrition. Labor leaders also agreed on a wage freeze for 2013 and to increase the average number of working hours. According to Gerard Leclercq, head of Renault’s French operations, annual savings from the cuts will reach 500 million euros ($649 million).

A fourth union, the CGT, hasn’t announced yet whether it would support the agreement, according to Renault spokeswoman Raluca Barb. The CGT represents 25 percent of Renault’s workforce. A national works council will be held on March 12 to vote on the deal.