Renault cuts Spanish output; lay-offs, redundancies to hit over 2,000 workers |
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Wed, 31 Jan 2007 16:08
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PARIS (AFX) - Renault said it has reached an agreement with unions that could see more than 2,000 Spanish workers laid off or accepting early retirement as part of production cuts.The company said it will cut output at Spanish plants from Feb 5 until the second half of 2008, when it aims to resume production at current levels as new Megane and Modus models come on stream.Around 1,300 workers are expected to be temporarily laid off in a rotation system, a company spokesman told Agence France-Presse.During this time, the staff in question will receive 88 pct of their current pay from both Renault and the Spanish state.'Renault's aim is to not make too many cars. The group prefers to pay people not to make (them) rather than keep them on the production line,' the spokesman said.Voluntary redundancy will be offered to around 1,000 workers, although there may be some crossover with those laid off, the spokesman said.Renault sales fell 4 pct last year, hit by sluggish European demand and an ageing model range.paris@afxnews.comafp/mrg/jmsCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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