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08/09/2010 | Paris - 8 September 2010

Agreement on Enhancing Production Plant Flexibility and 900 Additional Hires in 2010

PSA Peugeot Citroën management and labour unions today completed their negotiations on an agreement to enhance the flexibility of the Group’s production plants in France.

The agreement underscores the need to continuously enhance the competitiveness of the Group’s manufacturing facilities in France, which will determine the future of the plants and therefore the related jobs. This process requires ongoing productivity gains, structural transformations and the ability to respond immediately to wide swings in demand. To enhance plant flexibility, the draft agreement calls for:

  • The possibility of introducing variable night shifts, as is already the case at the Vigo plant in Spain.

These shifts will be based on shorter night-time hours, with daily worktimes varying depending on order intake.

  • Improved conditions for using temporary workers.

The agreement notes that temporary workers are needed in the European plants to absorb sudden increases in demand and meet short-term requirements. It also reiterates the commitments in the Group 2003 charter on good working conditions for temporary employees.
The new agreement increases the possibility of rotating temporary workers in each shift, promotes longer assignments and opens the door to new assignments in the Group, in compliance with legal interruption periods.

Under the new flexibility agreement, PSA Peugeot Citroën will hire 900 additional employees under permanent contract in France in the second half of 2010, on top of the 1,100 already announced in June. The 900 additional jobs will be created in the Industrial Operations Department, as follows:

  • 150 engineers, technicians and supervisors
  • 750 production operators, in particular at the Sochaux, Poissy, Mulhouse and Vesoul plants.

The Group will be assisted in the hiring process by the State Employment Agency and the metalworkers’ apprenticeship centre network.

The labour unions will express their final position in the next few days. Already, four unions (CFE/CGC, CFTC, FO and GSEA) have issued favourable opinions and a fifth, CFDT, has highlighted the project’s benefits in terms of new jobs.

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