Peugeot Citroen pays 1.0% plus extras

Peugeot Citroen, the French car-maker has agreed a package of pay increases for 2001 with unions representing most of its workforce in France.

The agreement, which came into force at the start of this month, provides for a general 1.0% increase on basic rates plus a monthly cash payment of Euro21.34 (equivalent to a 2.0% rise for those at the bottom of the scale). A further 1.4% has been set aside for individual increases and a number of allowances have been improved. The company considers the package is equivalent to a 3.5% increase for the lowest paid, although less for those higher up the scale. Inflation in France is currently 1.6% (December 2000).

Starting pay has been equalised between Paris and the rest of the country so the lowest monthly starting pay has increased from Euro1,036 to Euro1,125.

The agreement covers affects 85,000 workers, technicians and supervisors. Since November 1999 they have all been on a working week of 35 hours plus breaks.