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21/04/2010 | Paris – 21 April 2010

Agreement Signed on the New Jobs and Capabilities Dynamic

PSA Peugeot Citroën and five French unions – CFDT, CFE/CGC, CFTC, FO and GSEA – today signed a new Human Resources Planning and Development (GPEC) agreement.

The negotiations were based on the current GPEC agreement in effect since April 2007, taking into account its accomplishments and outcomes.

The new agreement provides for a comprehensive human resources planning and development system
covering all of the areas prescribed by French regulations and legislation. It comprises three parts:

1. Processes to improve the ability to foresee changes in jobs, skills sets and capabilities

These processes will improve the ability to proactively respond to an evolving skills base, predict the capabilities the Company will need in the future and enhance employee visibility of over-the-horizon technologies and  manufacturing processes.

Results of this proactive planning system will be summarized and reported by job track/skills set, country and site. A Skills, Jobs and Capabilities Observatory will help to disseminate and share information with management, unions and employees..

2. A new dynamic for individual career management

This process is designed to encourage personal investment and job mobility, in a commitment to developing PSA’s skills and capabilities base.

Employees will be offered more information about job tracks, skills sets, career orientation counselling and career bridges, in particular through the introduction of Mobility and Career Development Units.
Key career management components, such as annual performance reviews, career assessments and training management, will be improved to give everyone the resources they need to build a career path aligned with their capabilities, their aspirations and the needs of the Company.

Job mobility will be encouraged as a key career development driver, by enabling employees to acquire new skills and a diversity of experience.

A new internal mobility organisation will be introduced, specifying the Group’s commitments and the respective roles of managers and employees in the mobility process.

The agreement also calls for a new “career transition with work study” system for employees whose job mobility involves a change in skills set. Following an orientation process, participating employees may leave their original sector and join the new organisation, alternating between training courses and assignments in their predefined new sector

3. Support for corporate transformation programmes

The new agreement also includes a support system for employees concerned by corporate transformation programmes, such as retraining, collective transfers or developments in a socalled “sensitive” job. The scope of application will be regularly updated with the Skills, Jobs and Capabilities Observatory and site works councils.
The system will be different from the previous voluntary separation system, in that it will focus primarily on internal mobility and/or retraining and inplacement.

It will capitalise on the Group’s past accomplishments in this area, including mobility units, individual career assessments, training/retaining plans and financial support for any necessary relocations.
For employees who nevertheless chose outplacement, the system provides for such support measures as a “mobility period” that allows them to be seconded for a time corresponding to the new job’s trial period. Outplacement will therefore be used only on a voluntary basis, with the agreement of both the employee and the company.

This new jobs dynamic marks an important step in the construction of a proactive jobs strategy. The professional development of every employee in a fast changing environment represents one of the Company’s social responsibility objectives.

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