Peugeot gets union backing for cuts as stake sale studied, Bloomberg reports

theflyonthewall.com

PSA Peugeot Citroen is close to a deal with unions to reduce operating costs, a key obstacle the automaker must cross before a possible capital increase, reports Bloomberg. Unions that represent over 50% of workers said they will support a proposal to reduce overtime pay and freeze salaries in exchange for investment guarantees and new models to boost production capacity utilization. That would allow the company to focus on studying a share sale of at least $4.1B to Dongfeng Motor Corp. and the French state, sources say.

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