Carmaker PSA eyes collective bargaining over future job cuts -union

PARIS, Dec 28 (Reuters) – French carmaker PSA is considering adopting a collective bargaining process with its workforce over future job cuts, said a trade union official on Thursday, with some unions warning the move could make it easier for PSA to shed staff.

Officials at PSA could not be immediately reached to comment on the matter, first reported by newspaper Le Parisien.

CFTC trade union representative Franck Don said the collective bargaining option would be on the agenda at a Jan 9 works council meeting, while CGT trade union official Jean-Pierre Mercier said such a move could make it easier for PSA to sack workers.

PSA is looking to cut costs in order to boost its overall financial performance.

The French company has given its Opel arm until 2020 to return to profit as part of a recovery plan aimed at shifting the brand’s model lineup onto PSA’s architecture, with PSA pursuing 1.7 billion euros ($2 billion) in savings from its purchase of Opel.

($1 = 0.8374 euros) (Reporting by Gilles Guillaume; Editing by Sudip Kar-Gupta)

Article Courtesy of CNBC