Most of the unions representing employees at Peugeot maker PSA are in support of a planned $50 billion merger with Fiat Chrysler, PSA executives and union representatives stated.
The unions stated that once the merger deal was signed they would be looking forward to detailed information about the plans for the combined company.
During a PSA works council meeting, all trade union representatives on the council voted to give a favorable opinion on the merger.
“We will remain vigilant about the social effect and await a clearer and more informative picture of the plan’s implications for plants, volume, and how much work will be given to the foundries,” stated Franck Don, representative of the CFTC union.
“But the project in the form it’s been presented makes sense as the two groups complement each other, are in good financial health, and the credit goes to the new format which will attain a critical size which is vital in the auto business today.”
The merger would help the automakers’ pool resources to meet stricter new emissions rules and investments in electric and self-driving vehicles, along with counter a broader slump in auto markets.
Securing support from Europe’s powerful trade unions will be critical for the merged company, which will employ over 400,000 staff and operate hundreds of factories globally.
The deal has stirred issues in Germany and Britain where plants making Opel and Vauxhall cars have observed jobs cut in recent times as part of a cost-cutting drive.
