Renault closes site, restructures factories in France in bid to slash costs
UNTV News • May 29, 2020 • 321
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Renault said on Friday (May 29) it was launching talks with unions to restructure several French car plants, as it confirmed plans to cut around 15,000 jobs worldwide and the closure of one France plant.
Faced with a slump in demand that has been exacerbated by the coronavirus crisis, Renault is aiming to find 2 billion euros ($2.22 billion) in savings over the next three years as it shrinks production and hones in on key car models.
Speaking at a news conference on Friday, Interim Chief Executive Clotilde Delbos said 4,600 jobs in France are in peril of being cut.
Renault Group Board of Directors Chair Jean-Dominique Senard hailed the cost-reduction plan to be both “defensive” and “offensive,” as he announced the closure of the Choisy-le-Roi factory, which manufactures motors, the sole plant to halt activity out of Renault’s 14 plant sites.
Senard said though that the Caudan site in Brittany, which was also threatened of closing will maintain operations, adding that Renault is working with the regional government to think about the future of the plant. (Reuters)
Several hundred Nokia workers protested in Paris on Wednesday (July 8) against plans to cut over 1,200 jobs in its French subsidiary Alcatel-Lucent International.
Nokia has said most of the layoffs would come from research and development (R&D) teams. Unions say this is incomprehensible when Europe is preparing to deploy the next generation mobile network.
Member of the French parliament from the ruling party LaRem, Eric Bothorel, who was elected in the northwestern region of Côtes-d’Armor, where there are planned job cuts, said Nokia’s announcement came just after the date set releasing the company from commitments to preserve jobs.
Nokia was bound to job retention commitments when it acquired Alcatel Lucent in 2015. They expired in June.
Bothorel said the move was “making fun of the government” as it targeted people who were recently hired.
Nokia says it will continue to be a major employer in France with a strong foothold in R&D. (Reuters)
Working from home is still a preferred option but is not the panacea for dealing with the problems caused by the coronavirus, French finance minister Bruno Le Maire said on Monday (June 15), as France looks to speed up the re-opening of its economy.
“Working from home remains preferable, in the sense that it allows us to have a gradual return and can limit the circulation of the virus. But I’ve always considered that working from home was not the panacea,” Le Maire told France Info radio.
Even though many of France’s shops and restaurants have started to re-open, the major business districts of Paris remain empty as many employees are still working from home.
Le Maire also added that the state has begun to reduce its aid in covering partial unemployment benefits, to prompt companies to restart their activities. During the confinement period, the state covered 84 to 100 percent of salaries of furloughed employees.
He said working employees must be able to keep their purchasing power, to fuel consumption. (Reuters)
MANILA, Philippines – Exactly 69,022 employees from more than 2,000 establishments across the country have gone jobless amid the coronavirus disease (COVID-19) crisis.
This, according to the record of the Department of Labor and Employment (DOLE) as of Tuesday (June 9).
Specifically, 193 of these establishments have declared permanent closure while 1,875 others have reduced their workforce.
DOLE is waiting for the filing of formal notice of closure from the said establishments for the final process.
Labor Secretary Silvestre Bello III noted that it is the obligation of employers to give the separation or retrenchment pay for every affected employee.
“Statutory right iyan ng employee kapag tinanggal mo siya. Kung walang legal basis, magsasara ka lang then they have to pay for separation pay [This is a statutory right of the employee when he is dismissed from work. If there is no legal basis for the closure then they have to pay for separation pay],” Bello said.
The Employers’ Confederation of the Philippines (ECOP), however, expressed concern about how these establishments can give their employees’ separation pay when they, too, are severely affected by the implementation of community quarantine measures amid the coronavirus pandemic.
“Noong araw mahirap magsara ng kumpanya dahil ang daming babayaran. Pero ngayon ready-made reason sa kanila yung lockdown na nalugi sila. Hindi mo mapipilit na magbayad ng separation pay dahil Walang ibabayad [In the past, it’s not easy to close a company because of a number of obligations to settle. But now, the lockdowns had become a ready-made reason for them because of income loss. You cannot force them to give separation pay because they have nothing to give],” explained ECOP President Sergio Ortiz-Luis Jr.
Meanwhile, DOLE has recorded around 1.9 million workers affected by the temporary closure of companies, while more than 960,000 are back in their jobs under flexible work arrangements.
The Labor Department is now planning to subsidize 25% to 50% of the payroll cost of employers with the condition that they would not resort to retrenchment. –MNP (with reports from Rey Pelayo)
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