France: "Crisis social contract" is agreed at Renault

Trade unions at Renault approved in April 2009 a "crisis social contract" proposed by management, which aims to maintain employment levels at the car manufacturer through the widespread use of short-time work, with employees keeping up to 100% of their normal pay.

With the car industry cutting back production in the face of a major fall in worldwide demand, in February 2009 Renault management proposed a "crisis social contract" aimed at saving between 8,000 and 10,000 jobs under threat in France due to a 20% fall in output.