Categories: Europe

Renault manufacturing facility strike stokes political concern for auto jobs

Renault staff blocked a car-parts website in western France for a 3rd day in a standoff that would jeopardize cost-cutting plans as the federal government grows anxious over automotive jobs.

Staff led by the CGT union demonstrated on Thursday towards a plan by Renault to promote the Fonderie de Bretagne in Caudan that makes cast-metal elements for combustion engines.

The manufacturing facility halted manufacturing after entry was blocked, following a so-called boss-napping incident on Tuesday when native managers had been detained into the night time.

The sale of the manufacturing facility “is a betrayal,” CGT union chief Mael Le Goff mentioned in a video posting. Productiveness and suppleness have risen and Renault ought to hold the positioning, he mentioned.

The dispute underlines the struggling firm’s difficulties in slicing prices in France, a key a part of CEO Luca de Meo’s turnaround plan. It has additionally sparked mounting concern throughout the authorities — the carmaker’s strongest shareholder — in regards to the results on jobs because the shift to electrical automobiles accelerates.

Renault rival Stellantis, which owns Peugeot-make PSA Group and likewise counts the French state as a shareholder, this month caved to authorities stress to maintain manufacturing of a combustion engine in France.

On Thursday, a finance ministry official mentioned the nation suffers from a productiveness hole within the foundry sector and that the federal government is stepping up efforts to consolidate and retrain staff.

As many as 5,000 jobs may very well be in danger by the top of the last decade at French auto foundries out of roughly 13,500, in line with the ministry, citing outdoors research. One other 30,000 positions may very well be misplaced by mid-decade amongst car-parts suppliers.

Renault mentioned it could promote the auto foundry final 12 months as a part of a plan that features voluntary departures of some 4,600 staff throughout the enterprise in France and the phasing out of automotive meeting on the Flins manufacturing facility outdoors Paris.

The corporate has fallen far wanting its workers discount objective and the unrest at Caudan presents yet one more issue. In a bid to reassure buyers, de Meo mentioned final week a 2 billion-euro ($2.4 billion) cost-cutting goal could also be reached this 12 months.

The seek for a purchaser of the Caudan website is ongoing, a spokesman mentioned Thursday.

The federal government tried to chase away an escalation of the dispute earlier this week when Finance Minister Bruno Le Maire introduced a fund devoted to job retraining for auto foundry staff.

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