PARIS (Reuters) - French carmaker PSA Peugeot Citroen (PEUP.PA) has delayed the start of its crucial restructuring plan by at least one week following a new court challenge, a union leader said.
Paris-based Peugeot has canceled an April 19 works council meeting that had been due to begin the process of closing its Aulnay plant near Paris and cutting 8,000 jobs, CFTC official Franck Don said.
“The works council has been postponed pending the court ruling,” he told Reuters. “That effectively postpones the plan’s entry into force.”
Peugeot had no immediate comment on the delayed meeting, a spokesman said.
Chief Executive Philippe Varin is struggling to reduce Peugeot’s fixed costs and excess production capacity amid a devastating European auto-market collapse. The French carmaker’s survival plan requires it to halt mounting losses by the end of next year.
The Paris high court is due to rule on April 26 in a case brought by the left-wing SUD union to halt the planned cuts, now backed by a majority of unions including the CFTC.
The Peugeot plan has already been delayed once by another court, expected to lift its suspension on Thursday following additional worker consultations demanded by the CGT union at 57 percent-owned parts unit Faurecia (EPED.PA).
Additional reporting by Laurence Frost; editing by James Jukwey and Christian Plumb