News Column

Court Suspends Peugeot Plans for Factory Closure

Jan 29 2013

A French court on Tuesday suspended plans by carmaker PSA Peugeot Citroen to cut 8,000 jobs and close an assembly plant, ruling the company did not consult enough with staff over the restructuring plan.

The Court of Appeal in Paris ruled in favour of a trade union representing workers at Faurecia, a subsidiary of PSA that manufactures car parts.

The union said PSA had failed to properly inform Faurecia workers when it announced the restructuring plan last year.

PSA said it had noted the decision and would continue to negotiate the plan with unions.

Europe's second-biggest carmaker caused dismay in France last year when it announced it would close an assembly plant near Paris in 2014 and cut 8,000 jobs nationwide.

The government initially reacted with outrage but an expert report later found Peugeot had no choice but to cut jobs and pare back production faced with dwindling car sales in Europe.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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