Peugeot unions approve sweeping job cuts

PARIS, April 29 Mon Apr 29, 2013 11:18am EDT

PARIS, April 29 (Reuters) - PSA Peugeot Citroen unions voted on Monday to back plans to cut thousands of jobs and close a plant, the central plank of the French carmaker's efforts to halt ongoing losses.

A majority of unions had agreed last month to back the plan, including 8,000 French job cuts and the closure of Peugeot's Aulnay plant near Paris. But the cuts were delayed by a legal challenge filed by the leftwing CGT and Sud labour groupings.

The Paris high court rejected the dissident unions' latest challenge on Friday, clearing the way for the cutbacks to take effect.

Union officials approved the key restructuring measures by 18 votes to two, an official from the CFTC union said after a works council meeting on Monday.

Peugeot has been running losses of as much as 200 million euros ($260 million) a month and only plans to return to profit in 2015.

Unveiling a further 6.5 percent decline in first-quarter revenues last week, Peugeot said it planned to seek further savings by negotiating labour concessions in such areas as working time and wage restraint.

($1 = 0.7676 euros) (Reporting by Laurence Frost and Gilles Guillaume; editing by Patrick Graham)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video