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Last Updated : Sep 29, 2020 03:57 PM IST | Source: Reuters

Main Renault unions to reject cost-cutting plans

Loss-making Renault, which is 15 percent owned by the French government, has outlined 2 billion euros ($2.34 billion) in savings, including via job cuts and by reorganising its factories, to restore profitability.

Reuters

At least three of the four main unions representing employees at France's Renault plan to signal their disagreement with its cost-cutting plans, several union sources said, adding to the carmaker's turnaround headaches.

Loss-making Renault, which is 15 percent owned by the French government, has outlined 2 billion euros ($2.34 billion) in savings, including via job cuts and by reorganising its factories, to restore profitability.

It has pledged to consult unions on the process. Employee representatives only have a consultative power on the plans, but rejecting them will complicate negotiations for new Chief Executive Luca de Meo.

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The CFE-CGC, CFDT and CGT labour unions will reject Renault's plans at a meeting with representatives of the firm on Tuesday, three union sources said.

A fourth union, Force Ouvriere (FO), is also due to go against them, Le Figaro newspaper reported on Tuesday.

Renault declined to comment.
First Published on Sep 29, 2020 01:41 pm
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