May 30, 2012 / 3:22 PM / 5 years ago

Peugeot seeks Sevelnord job cuts, pay freeze-unions

PARIS, May 30 (Reuters) - PSA Peugeot Citroen has asked workers at its Sevelnord plant to agree to a pay freeze, hundreds of job cuts and other concessions or face possible closure, officials with two unions said.

The French automaker is opening talks on plans to reduce the threatened plant's 2,700-strong workforce, freeze salaries for at least three years, reduce leave and impose more flexible hours, CGT and CGC union representatives told Reuters.

Peugeot declined to comment on its plans for Sevelnord. Managers outlined their demands on May 25, ahead of formal negotiations to begin on Friday, said Ludovic Bouvier of the CGT union and Pascal Lucas of the smaller CGC.

Without the concessions, the next generation of Peugeot Expert and Citroen Jumpy delivery vans would be produced in Vigo, Spain, both officials said they were told by plant chief Patrick Labilloy.

The Sevelnord plant in northern France, currently shared with Fiat, faces an uncertain future as the Italian automaker prepares to withdraw production of its Scudo van from the joint venture by 2017.

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