Renault’s Pact with Union – To cut 2,500 jobs in first year

Renault (RENA.PA: Quote) has cut about 2,500 jobs in the first year of a productivity deal with French unions and is on course to meet its savings goals, the carmaker said on Thursday. 

“We’re at about one-third of the objective” of 7,500 positions to be eliminated under the three-year plan, the carmaker’s head of French personnel Jean Agulhon told reporters, adding that the deal was “on track” to deliver 500 million euros ($690 million) in promised savings.

Renault promised last year to protect its French sites in return for increasing working hours, curbing pay rises and cutting at least 7,500 jobs by 2016.

The pioneering deal, signed by three of Renault’s four main unions, also promises to raise domestic production by about one-third to 710,000 vehicles while providing for early retirements and other voluntary job cuts to reduce plant costs.

via Renault says it cut 2,500 jobs in first year of union pact | Business | Reuters.