Renault Says It Will Cut 21,000 Jobs by 1987 : Plans to Trim 12,000 This Year and 9,000 in 1986
The state-owned French auto maker Renault confirmed to labor representatives Monday that it plans to reduce its work force to 77,000 from 98,000 by the end of 1986.
The nationalized car group said it intends to cut 12,000 jobs in 1985 and another 9,000 in 1986.
Officials from the major labor unions represented at the meeting rejected the group’s intention to lay off workers for economic reasons.
But, by a large majority, they indicated that they accepted a proposal under which workers will be offered early retirement or incentives to immigrant workers to return to their native countries next year.
The job cuts are part of a broader plan being worked out by Renault President Georges Besse to get the group back on track after last year’s $1.3-billion loss.
The job cuts outlined by Renault management Monday call for the departure of 3,000 more workers than were suggested under a proposal put forward by Besse’s predecessor, Bernard Hanon, last year.
Recovery Program Plans
Renault said in a statement issued after the meeting that it was too early to say how many workers would be affected by early retirement or the number of immigrant workers who might opt to return home.
Renault, meanwhile, is putting the finishing touches to a financial recovery plan that will require fresh injections of state capital as well as assistance from nationalized banks. The state has already pumped $320 million into the ailing car group to bolster its capital base.
The group announced recently that the recovery program will involve concentrating on automobile manufacturing and directly related activities and teaming up with other car makers to achieve economies of scale in the manufacture of components.
The reduction of the work force is widely regarded as only the first step in Besse’s strategy to turn around Renault, which has seen its share of the European car market drop from the top spot in 1982 to sixth place.