Freezing of salaries, lower premiums … How Valeo wants to lower wage costs by 10%

Already experienced for a few weeks in the aeronautical industry, collective performance agreements tumble into the automobile. To cope with “an unprecedented crisis”, Valeo began negotiations with unions at the end of June with a view to obtaining a collective performance agreement. The idea is to manage to reduce labor costs by 10%, which represents 100 million euros.

According to the management of the French automotive supplier, the current crisis is worse than that of 2008. With 114,000 employees worldwide (14,000 in France) and 19 billion euros in turnover, Valeo recorded in 2019 net profit down 43% (to 313 million euros). A cost reduction plan then saw the light of day and involved in particular a 2% drop in research and development costs and a 6% drop in administrative and general costs.

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