Peugeot seeks 2014 wage freeze in labour talks

PUBLISHED : Friday, 06 September, 2013, 8:53am
UPDATED : Friday, 06 September, 2013, 8:53am

French carmaker PSA Peugeot Citroen is pressing unions for a pay freeze next year and wage restraint in 2015-16, workers’ representatives said.

The company, which is cutting more than 10,000 jobs and slashing costs in an attempt to return to profit by 2015, made the proposals during labour talks on Thursday, officials with the CFTC and CFDT unions told Reuters.

“Management is proposing a freeze in overall pay increases for next year and a limited budget for individual raises,” CFDT leader Jean-Allart Gillet said.

PSA Peugeot Citroen spokesmen could not immediately be reached for comment on the latest round of talks.

Under the proposals, pay increases would be capped according to the company’s overall performance for a further two years, Gillet said.

Peugeot, among the automakers most dependent on collapsed southern European markets, has vowed to end losses at all assembly plants by 2016 with the help of labour concessions negotiated with unions.

Europe’s second-biggest carmaker is hoping to emulate a competitiveness deal between smaller domestic rival Renault and its workforce, expected to save the company 500 million euros (HK$5.1 billion) annually.