Court delays Peugeot job cuts

Now Reading:

Court delays Peugeot job cuts

Text size Aa Aa

PSA Peugeot Citroen says a court ruling over 8,000 job cuts will delay but not halt them.

The Paris Appeal Court has ordered a temporary suspension of the struggling French carmaker’s restructuring plans.

That comes after the CGT trade union complained that Peugeot had failed to consult with workers at two sites belonging to its parts division Faurecia, which would be directly affected by the other layoffs.

The company is still in formal talks over the decision of last July to close its Aulnay plant near Paris as it tries to remove overcapacity and return to profitability in the face of falling car sales.

The Faurecia consultations will have to be completed before Peugeot can carry out the broader restructuring programme it had hoped to finalise by February or March.

Ongoing negotiations with the main Peugeot workforce over the Aulnay closure will continue as planned on February 5 and 12, Peugeot said, without giving a new time frame for completion.