Between opposition and circumspection. For the past ten days, the Losange unions have also been working on the surprise proposal made by Fiat Chrysler Automobiles (FCA) for a big “equals” marriage with Renault. And their early work has not resulted for the moment on a massive enthusiasm, to say the least.
The CGT has already made known its official position: it is resolutely against the operation. Evoking in particular the outings of Carlos Tavares (internally at PSA) or Patrice Pelata (on Europe 1 for example), both former leaders of the Losange, the union takes up most of the arguments put forward by experts and analysts in the sector: the project is “unbalanced for the benefit of the Agnelli family and FCA”, given the valuations used but also the “chronic underinvestment” found at FCA; synergies are questionable; and most importantly, the merger risks “breaking the Alliance” with Nissan and Mitsubishi. Its representative on the board of directors will oppose a negotiation with FCA.
Dividends rather than investments
Open to paper for any operation of strategic interest to Renault, the other unions are less radical – but no less worried. Especially on the timing. “The operation would bring complexity to the current complexity. We feel a form of eagerness, when we should study it in a calm and dispassionate way, and take the time to assess the risks in the long term, “says Mariette Rih, central delegate FO (not represented on the board).
The employment in France is obviously at the heart of their concerns. “We are looking closely at the situation of factories and engineering at FCA. We must not hide the face, if there is a social earthquake at FCA, it will have repercussions here! “Says Franck Daoût, CFDT Central Delegate. At this stage the central is not opposed to further negotiations, but is worried about the financial strategy led by the Agnelli in the past. “We do not want to wave the red rag, but they have so far favored dividends rather than investments at FCA,” says the trade unionist. “We will be attentive on this point”.
Unbalanced proposal
Similarly, the CFE-CGC remains cautious. “If there is an opportunity for the group, and therefore for its employees, it must be in the long term”, insists the central delegate Bruno Azière, who judges FCA’s initial proposal “unbalanced”. “In the new complex, Renault’s historical share must weigh as much as FCA’s: in the FCA proposal, the Agnelli would hold nearly 15% of the new group, with no block of the same size in front. But the state, which is the only one able to play this role (a bit like Airbus), would only hold 7.5%. It remains to be seen what concessions the French state, which has set conditions to give the green light to the operation, will ultimately get from FCA.