Thursday, November 20, 2008

PSA Peugeot Citroën removes 3 550 jobs

Employment is deteriorating at high speed in the automotive industry, hit with unprecedented violence by the economic and financial crisis. PSA Peugeot Citroen announced yesterday 3 550 job cuts in France, via a new plan for voluntary departures. It covers 2 700 "employees of structure" (professional workers, employees, technicians, supervisors and managers) and 850 people at the plant in Rennes (about 8 000). In addition 900 workers at this site will be directed to other sites of the group.

"The worst thing would be to do nothing. This could ultimately jeopardize the survival of the group and its 200 000 jobs, "said Jean-Luc Vergne, director of human resources PSA. The group seeks to adjust its costs to the extremely sharp drop in sales of cars (- 16% last month in Europe). PSA had already greatly reduced the wings, removing 15 000 posts since 2007. The new plan initially to be presented to partners in Central Committee extraordinary business on December 2, is the third launched by Christian Streiff since his arrival at the manufacturer's manettes at the beginning of last year.

PSA announced late October that it now expected global sales down 3.5% this year, when he was previously a growth of around 5%. The manufacturer provides a fall in European markets by 17% in the fourth quarter, then a further decline of at least 10% in 2009. To reduce stocks rising sharply - and very expensive - PSA announced last month that it would reduce its production in the fourth quarter of 30% compared to its forecasts. But the group should in fact go beyond. After scheduled from 2 to 16 days of unemployment on its European sites between October and December, it continues to cut rates. In France, Sochaux stop its production for a month from December 6 to January 6, a week longer than originally planned. Rennes also close for about the same time. At Poissy, no car will be produced from 12 December to 5 January. Finally, in Mulhouse, the assembly lines stop from Dec. 12, according to unions.

Unions outraged

Rennes, particularly affected by the plan, is a victim of the sharp fall - accelerated by the environmental surcharge - sales of cars and average premium. The site Breton, which manufactures the Citroen C5, C6, C6, Xsara Picasso and the Peugeot 407, recorded "a significant under-activity of more than 20%. PSA stressed that the future of Rennes' is not in question "and that a new vehicle is scheduled for late 2010.

The new job cuts have aroused the indignation of unions. Bernard Thibault, secretary general of the CGT, has lamented that employees are "left behind", while "measures to rescue banks and companies have been taken." For the union FO PSA, "it is urgent: the state has put money to help banks, it is time he wakes up and do something for Automotive.

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