Peugeot wins majority union backing for restructuring plan

City A.M. Reporter
FRENCH car manufacturer PSA Peugeot Citroen won majority union support for restructuring plans yesterday, as protesting workers clashed with police in front of its Paris headquarters.

Four of Peugeot’s six unions approved the measures, which include thousands of job cuts and a factory closure, and a fifth grouping is expected to sign the agreement, the struggling vehicle producer and workers’ representatives said.

The works council backed the restructuring plan by 15 votes to four, with one abstention.

The vote “clears the way for a rapid signing of the accord”, Peugeot spokesman Jean-Baptiste Mounier said.

Peugeot, the mass automaker worst hit by Europe’s market slump, is struggling to cut costs and lift sales in an effort to return to profit in 2015. The measures announced have earmarked its Aulnay plant near Paris for closure.