Workers at PSA Peugeot to discuss voluntary departure incentives

A special meeting of the PSA Peugeot Citroen Central Works Committee has been called for May 9 to discuss a proposed plan to adjust the Automobile Division’s corporate workforce through voluntary departures.

In this way, the workforce can be reduced without any layoffs. By not replacing the employees who retire or voluntarily leave, the Group expects to eliminate 4,800 jobs in 2007.

The planned employee support system is designed to help volunteer employees find new jobs either elsewhere in the Group or with other companies. Financial incentives will be offered to employees who wish to leave to pursue a business project or to retire.

All of these measures are in accordance with the company agreement on Human Resources Planning and Development, signed with five of the Group’s six unions on April 6.
For PSA Peugeot Citroen, the past four years have seen flat sales in Europe and a steady decline in profitability. The project that will be presented to the Central Works Committee for consultation is intended to help reduce corporate overheads, which is one of the Group’s objectives to restore growth and profitability.
Jean-Luc Vergne, Executive Vice President, Human Resources, said “this system means that we do not have to lay anyone off. The proposed measures avoid terminations based on last-in, first-out criteria, which would affect the youngest employees without much seniority, or early retirement plans that would deprive the company of the capabilities of its more experienced employees. It is designed to encourage people to volunteer for retraining or to leave the Group.”