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The head of French car maker, PSA Peugeot-Citroen, has agreed to open talks with unions following the announcement of cuts that will result in the loss of 8000 jobs.
In July, the ailing company announced the measures as well as the closure of its plant in Aulnay, north of Paris.
PSA Union leader Jean-Pierre Mercier said the workers were happy that talks are opening:
“We’re faced with a company that is tough, a management that doesn’t want to give anything up. But today through the unity of the workforce, we have managed to score a very important first point.”
On Wednesday the French government promised a 7 billion euro state guarantee for PSA’s finance division, but the its Chief Executive, Philippe Varin says savings still need to be made:
“The closure of the Aulnay plant will take place. A total of 8,000 jobs in total are concerned. But as we have said since the very start: we attach a great importance to the limitation of the social impact.”
Peugeot reported a 3.9% fall in sales during the July to September quarter and its shares fell sharply as it said it would not pay dividends while in receipt of government aid.