Renault finalizes planned agreement on forward-looking management of jobs and skills

January 21, 2011: Renault’s management and trade unions today finalized negotiations on an agreement on Forward-Looking Management of Jobs and Skills. The agreement, pending signing, will affect employees at Renault sites and manufacturing subsidiaries in France.

A draft agreement in France as an instrument of the Group’s strategy

There are two sides to this draft agreement:

- In terms of the workforce, it should enable the company to better anticipate and support businesses, skills and jobs as they change into the medium and long term.

- In terms of individuals, the agreement should enable all employees to develop their skills throughout their careers.

The agreement will apply across the company’s scope for Renault s.a.s. and manufacturing subsidiaries in France. Yet the same approach of dynamic skills management will be introduced group-wide to help make the company more competitive.

4 700 hires planned for Renault sas and its industrial subsidiaries by 2013

Renault is planning to make 4 700 new hires among which 2 700 new hires on apprenticeship contracts in France between now and 2013 for Renault s.a.s. and its industrial subsidiaries. The company’s key strategic development areas call for a greater number of existing skills, such as engineering simulations, as well as entirely new skills, in the electricity sector for example.

Mechanisms to increase fluidity in the company and with outside partners

Existing mechanisms – such as the training plan, career support and inter-site mobility – will be stepped up to support this dynamic management of skills.

In addition, the following new systems will also be proposed.

-            New diagnosis tools will be developed for upgrading skills at business lines.

-            Targeted training will be designed to help employees enhance their skills and change professional direction.

-            Release from service will be offered on a voluntary basis to line operators, technicians and supervisors aged 58 and over who meet specific eligibility criteria. The aim is to adjust the final years of specific careers to take account of the dangerous and difficult nature of some jobs at manufacturing plants.

-          The mobility period and the labor lending agreement will offer employees opportunities to gain additional experience at another company on a voluntary basis for a set period of time within a set framework.

Steering and promotion of the agreement

Two bodies closely involving labor representatives and management will be set up at Group level:

-          A joint body where strategic information on developments in the company and their impact on employment will be shared.

-          A jobs and skills monitoring unit that will examine analyses of changing businesses and skills and will suggest support measures (on training, mobility, etc.).

At the sites, the agreement will be rolled out and managed by staff from the Human Resources Division.

Jean Agulhon, Director, Human Resources France

“In a challenging economic environment where innovation is crucial for the future of the company, dynamic management of skills is an real asset which will be facilitated by quality industrial dialogue and the involvement of employees, managers, HR teams and unions.”