PSA Peugeot Citroën: New Social Contract

Regulatory News:

PSA Peugeot Citroën (Paris:UG):

The sixth meeting in the process to build a new social contract with employee representatives was held on 4 July.
The objective of this meeting was to discuss the proposals made since the beginning of the negotiating process to help secure jobs and skills.
In addition, new proposals were put forward to:

• Retain seniors.
• Reactivate youth employment contracts ("Emplois Jeunes”).
• Revitalise mobility.

1. Proposals to retain seniors

Following a review of the various measures proposed (end-of-career transitioning to part-time work, "secure" outplacement, suspension of the work contract to waive presence requirements in the event of a corporate reorganisation, and gradual transitioning to retirement), the following changes/adjustments were proposed for the 2014-2016 period:

• A transition towards retirement in which the various measures could be combined for a maximum period of two years (excluding "understaffed” jobs), with a possible extension to three years for employees in hardship positions.
• The deployment of a simple, straightforward pay system.
• As a supplement, the creation of a pool of possible internal and external assignments available for acceptance on a volunteer basis.
• Waiver of the presence requirement after a period of part-time working, for a similar amount of time.
• Payment of retirement contributions at full rate and personal protection insurance contributions for the full duration.
• The possibility for employees in "sensitive*” or "adequately staffed**” positions to participate on a volunteer basis.
• Three possibilities:
  • 24 months maximum, of which 50% part time and 50% with the presence requirement waived (see diagram below).
  • For employees in hardship positions, 36 months maximum, of which 50% part time and 50% with the presence requirement waived.
  • 36 months, of which 24 months in "secure” outplacement and 12 months with the presence requirement waived.
• 65% of the benchmark salary for the entire period of part-time work and waived presence.

2. Proposals to reactivate youth employment contracts ("Emplois Jeunes”)

The concept of a new intergenerational contract was put forward at the meeting of 26 June to ensure the transfer of knowledge between generations, prepare replacements so that the Group has the talents it needs and preserve a balanced age pyramid across job categories.
Details were provided on the principle of this contract:

• One new employee on a work-study contract (apprenticeship, skills qualification, VIE co-op placement or CIFRE doctoral student contract) brought into the Company would equal one senior retained.

In the event that business and hiring pick up, priority would be given to young people already enrolled in a work-study program in the Company.

3. Proposals to revitalise mobility

As part of the on-going Human Resources Planning and Development (GPEC) process, a proposal was made to set up regional mobility platforms and inter-industry bridges to revitalise outplacement for all Group employees (excluding "understaffed” jobs). For employees in "sensitive” positions, a proposal was made to add the mobility period described in new French legislation (possibility for the employee to return after 12 months if the project is not carried out).
In the case of inter-regional geographic mobility assignments that entail a change of residence, spouses who lose their employment may benefit from support in finding a new job as follows:

• A partnering job-placement agency would be assigned to provide advice and assistance.
• Two job offers would be provided, in line with the spouse's skills.

* Sensitive position: position for which a significant decline in workforce needs is expected in light of probable economic, technological or organisational changes.
** Adequately staffed position: position for which the existing skills match the Company’s medium and long-term needs.