The Permanent Restructuring of the French Automotive Industry and its Effects on Industrial Relations

The Institute of Economics will hold a seminar meeting as part of its Seminar Series on Tuesday, May 10, 2022: Juan Sebastian Carbonell from Gerpisa, ENS Paris-Saclay and IDHES will present the paper "The Permanent Restructuring of the French Automotive Industry and its Effects on Industrial Relations".

Abstract:

The French automotive industry has been in decline for the last fifteen years. This decline is explained by the hegemony of German manufacturers on the premium vehicle market and by competition from low-cost countries on low-cost vehicles. This decline is reflected in three ways: (1) a fall in the volume of production, (2) a fall in the number of people employed in the sector and (3) a deficit in the trade balance. In order to face this situation, the French generalist manufacturers have started a process of cost reduction. This involves, among other things, the negotiation of new collective agreements in the sector. The so-called "competitiveness" agreements introduced from 2013 onwards were seen by the legislator as a way of enabling companies to avoid paying the social cost of collective redundancy procedures or plant closures. Often, guarantees in terms of jobs, investments or activity volumes are negotiated in exchange for a reduction in labour costs. The French automobile industry took advantage of these agreements very early on and made them a key element of its cost reduction policy. In this presentation, the presenter will show (i) how manufacturers have made use of them, (ii) how trade unions have positioned themselves in relation to these new agreements and (iii) how they modify working conditions. He will base the presentation on a long-term survey of the two main French manufacturers: Stellantis (ex-PSA) and Renault, based on interviews and the study of internal company documents.

The seminar will be held in blended mode. In person participation is possible and available seats are allocated on a first come first served basis. For online participation please use the following link.