* Ruling mandates Faurecia consultations
* Peugeot says talks to continue
* Shares down 1.5 pct, reversing earlier gains
(Adds spokesman comment, details, background, market reaction)
PARIS, Jan 29 PSA Peugeot Citroen will
continue negotiating 8,000 job cuts with unions despite a court
ruling that may delay their implementation, the struggling
French carmaker said on Tuesday.
"The negotiations are not suspended and will continue to
make progress," a company spokesman said.
In a court ruling on Monday, the Paris Appeal Court ordered
a temporary suspension of the restructuring until the group
completes worker consultations at two sites belonging to parts
But the court rejected an application by the CGT union to
halt the entire plan and consultations that are required by law
before its implementation.
Peugeot shares were down 1.6 percent in midday trading,
wiping out a gain of about 1 percent prior to the ruling being
Peugeot is still in formal talks over its decision announced
last July to close the Aulnay plant near Paris and cut 8,000
jobs in addition to hundreds of positions eliminated under an
The CGT union had challenged the plan in court by arguing
that it had failed to consult workers at two Faurecia sites that
would be directly affected by the Aulnay closure and other
cutbacks at the parent company.
The French automaker, which is struggling to return to
profit by 2015, will begin consultations at Faurecia without
delay, in compliance with the ruling, the spokesman said.
Under its terms, the Faurecia talks will have to be
completed before Peugeot can carry out the broader restructuring
programme it had hoped to finalise by February or March.
Ongoing negotiations with the main Peugeot workforce will
continue as planned on Feb. 5 and 12, the spokesman added,
without giving a new time frame for completion.
(Reporting by Laurence Frost; Editing by Christian Plumb)