World Works Council established at PSA Peugeot Citroën

FRANCE: The framework agreement signed by the International Metalworkers’ Federation (IMF), the European Metalworkers’ Federation (EMF) and PSA Peugeot Citroën in 2006  provided that the parties would "meet every three years to review the measures taken and plan adjustments as needed through riders to the agreement" to take into account the global changes in the corporation’s business.  

The new agreement signed on May 20, 2010 in Paris strengthens PSA Peugeot Citroën’s commitments to the international core labour standards and stresses the extension of the Group’s requirements to its business partners. In addition it incorporates new commitments to environmental protection and sustainable development. The main improvements to the agreement are:

• Strengthening the provisions on occupational health and safety;
• The application of the principle of equal pay for work of equal value, regardless of the contractual arrangement under which workers are employed;
• The promotion of environmental protection and commitments to reduce greenhouse gas emissions;
• The involvement of trade unions in the audits carried out as part of the monitoring process; and
• The setting up of a World Works Council to follow up the agreement implementation.   

In addition to the members of the EWC, union representatives from PSA subsidiaries in Brazil and Argentina will sit on this Council which will meet for the first time in the second part of June 2010.

IMF General Secretary Jyrki Raina welcomed the improvements to the 2006 agreement and in particular the creation of a World Works Council, in view of the Group’s international development. He added, "This new agreement is an essential tool for promoting sustainable industrial relations and decent working conditions in PSA Peugeot Citroën, its suppliers and subcontractors." 

Present in 160 countries, the PSA Peugeot Citroën Group is focusing its international development on China, Latin America and Russia. In April 2010 the Group launched a new car assembly plant in Kaluga, Russia. The plant 70 per cent owned by PSA Peugeot Citroën and 30 per cent by Mitsubishi Motors is expected to employ some 3,000 workers in 2012 when the plant becomes fully operational. In China, PSA Peugeot Citroën has a joint-venture with Dongfeng and just signed a letter of intent with China Chang’an Automobile Group for the creation of another joint venture. PSA Peugeot Citroën employs about 187,000 people throughout the world. 

The renewal of this framework agreement is in line with the IMF Action Programme 2009-2013 which calls on the IMF to "identify opportunities to strengthen existing agreements, and the options and means that are optimal for pursuing improvements of their content".