Italian, French unions say FCA-Peugeot deal only benefits shareholders

A planned merger between Fiat Chrysler and Peugeot owner PSA is only going to benefit shareholders, two of the biggest Italian and French unions stated on Thursday, criticising a decision to invite labour groups in the decision.

“The decision by FCA and PSA to start negotiations to merge the two groups without any involvement of or communication to employees and union representatives is not acceptable,” France’s CGT and Italy’s Fiom-Cgil unions stated in a joint statement.

Fiat Chrysler and PSA on Thursday declared a strategy to join forces in a 50-50 share merger which would create the world’s fourth-largest automaker, seeking scale to cope with costly recent technologies and slowing worldwide demand.

As things stand, the deal would bring positive results just for the two companies’ investors and financial markets, CGT and FIOM stated. The two labour groups stated they would work together to protect jobs as well as research, development and production capacity in the continent.