Friday, November 16, 2012

Renault Wants Concessions from Labor

Renault is offering French workers "job guarantees" in return for concessions on work time flexibility, work rules, and wages. The company is playing hardball, having already pressured lower-paid workers in its Spanish plants to make similar concessions by invoking competition from still worse-off Romanian workers. So a race to the bottom is on, and in the current climate of no growth and high unemployment, many workers feel they have no choice but to agree to the clawbacks. It's an ugly situation, and it's hard to see how it can endure, given the magnitude of the labor cost differences between north, south, and east in the Renault empire.

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