PSA court ruling may delay job cuts
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PARIS (Reuters) -- PSA/Peugeot-Citroen will continue negotiating 8,000 job cuts with French unions despite a court ruling that may delay their implementation, the carmaker said on Tuesday.
In a court ruling on Monday, the Paris Appeal Court ordered a temporary suspension of the restructuring until the group completes worker consultations at two sites belonging to parts division Faurecia.
But the court rejected an application by the CGT union to halt the entire plan and consultations that are required by law before its implementation.
"The negotiations are not suspended and will continue to make progress," a PSA spokesman said on Tuesday.
PSA is still in formal talks over its decision announced last July to close the Aulnay plant near Paris and cut 8,000 jobs in addition to hundreds of positions eliminated under an earlier plan.
The CGT union had challenged the plan in court by arguing that it had failed to consult workers at two Faurecia sites that would be directly affected by the Aulnay closure and other cutbacks at the parent company.
PSA, which is struggling to return to profit by 2015, will begin consultations at Faurecia without delay, in compliance with the ruling, the spokesman said.
Under its terms, the Faurecia talks will have to be completed before PSA can carry out the broader restructuring program it had hoped to finalize by February or March.
Ongoing negotiations with the main PSA workforce will continue as planned on Feb. 5 and 12, the spokesman added, without giving a new time frame for completion.
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