EMCC European Monitoring Centre on Change



Geographic Location

Country: France


Sector: Manufacturing
Manufacture of transport equipment
29.10 - Manufacture of motor vehicles

Employment Effects

Announcement Date: 11-10-2016
Type of Restructuring: Business expansion
Employment Effect Start: 11-10-2016
Foreseen End Date: 31-12-2016
Planned Job Creation: 1000

Additional Information

The car manufacturer Renault has announced that it will recruit about 1,000 new employees, half of which will be employed at the company's factories and the other half mainly in engineering services and other services. The 1,000 new employees will be employed on a permanent basis and recruited by the end of 2016. The group has previously announced new recruitments earlier this year (183 in February and 130 in May) and 1,000 in 2015. The group highlighted that it has already recruited more than the 760 positions it agreed to under the competitiveness agreement signed with the unions in 2013 that led to 7,500 job cuts. The group has begun negotiations with the unions over a new competitiveness agreement. The assessment of this first agreement is seen as positive for the three signatory unions (CFE-CGC, CFDT, FO). According to CFE-CGC, the agreement led to more recruitment than expected, no plant closure and an increase in production from 510,000 vehicles in 2012 to 740,000 in 2016, which exceeds the 710,000 expected for 2017. However, the CGT, who did not sign the previous competitiveness agreement, stresses that there are fewer and fewer employees in France and that the group needs to convert temporary workers into permanent workers. According to the CGT, some factories have over 60% of temporary workers. According to the CFDT, the use of temporary workers should be reduced to a level of 20-25%, which would require a significant amount of new positions, and will be discussed in the upcoming competitiveness agreement negotiations.