Peugeot shares rise as unions back redundancy plans

Peugeot shares were higher Friday after five out six unions agreed to its new employment plan to axe 1,300 workers and employ the same number under permanent contracts.

Peugeot shares rise as unions back redundancy plans

PSA Groupe owned Peugeot shares are trading higher Friday, as the carmaker won the backing of five out of six unions to support its plans to axe 1,300 workers – and also employ the same number of staff - under French President Emmanuel Macron’s flexible working rules.

By 1410 BST, Peugeot shares were trading 0.66% higher at €18.44. That move higher continues a generally positive first few weeks of trading 2018 for the Peugeot stock.

Peugeot among first few firms to utilise new rules

Peugeot announced the agreement of the majority of unions with it’s plans to enact 1,300 voluntary job cuts. It stated it would also then make 1,300 permanent staff hires, 400 of which would be in the manufacturing sector of the PSA Group.

“The agreement signed today with five trade unions reflects the momentum we’ve generated over the past few years working together with employee representatives,” said Xavier Chéreau, Groupe PSA Executive Vice-President, Human Resources.

“The quality of our dialogue with the unions and the mutual trust we’ve built over the years give the Group a genuine competitive advantage which is helping us to move ahead. Together we will shape the Group’s future and secure its performance and sustainability,” Chéreau added.

Single union disagrees with Peugeot’s plans

Five of the unions the carmaker’s employees are members of - CFDT, CFE/CGC, CFTC, FO and GSEA – signed their approval of the plan. The CGT Union, however, has so far refused to agree with PSA Groupe’s employment planning.

“The CGT reaffirms its opposition to the conventional collective break (RCC) in the PSA group and regrets that PSA has received the agreement of a majority of unions for its application,” the Union said in a press release.

“For the CGT, the development of employment will have to involve a reduction in working time, with massive investments to improve working conditions, but also to develop new technologies and not to generate more profits for shareholders. PSA's policy is indecent and the behaviour of the government, which allows, is inadmissible!,” the press release ended.

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