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EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure FR-2021-36/2076 – measures in France

PSA Automobiles SA implementation of the long-term partial activity system

Accord PSA Automobiles SA du 23 août 2021 portant sur la mise en œuvre du dispositif d'activité partielle de longue durée

Country France , applies nationwide
Time period Temporary, 01 September 2021 – 01 September 2024
Context COVID-19
Type Bipartite collective agreements
Category Employment protection and retention
– Working time and working time flexibility
Author Frédéric Turlan (IRshare) and Eurofound
Measure added 23 October 2021 (updated 18 November 2021)

Background information

To cope with the drop in activity linked to the COVID-19 pandemic and the shortage of components, the car manufacturer PSA Automobiles SA (Stellantis group) has concluded an agreement on 23 August 2021, allowing each of its establishments to make use of long-term short-time working (APLD) since 1 September. Employees will be able to take advantage of these periods of "unemployment" to train, and thus strengthen their skills and acquire new ones. Signed by the trade unions CFDT, CFECGC, CFTC and FO, this text will enable the car manufacturer, which lost €15 billion in turnover in 2020, to face the difficulties encountered by the sector.

Content of measure

A system triggered at the initiative of each establishment

The APLD can be applied to all employees, whatever their status and the nature of their employment contract, and concerns all the activities of all the establishments, each one triggering the system on its own initiative. The period of application of the scheme is set at the level of each establishment at 24 consecutive or non-consecutive months, over a reference period of 36 months. The reduction in working hours may not exceed 40% of the legal working time.

As for employees with a working time modulation counter, they will only be placed on APLD 'once the lower limit [...] has been exceeded'.

Compensation

Employees placed on long-term short-time working will receive compensation equal to 70% of their gross pay, up to a limit of 4.5 times the hourly rate of SMIC, 'with the exception of engineers and managers, for whom compensation will be maintained at 100%, taking into account their specific work organisation', the agreement states.

Employment commitments

In return for the deployment of the APLD, the company undertakes not to resort to a job-saving plan for the positions that have benefited from it. On the other hand, a voluntary departure mechanism remains possible ("collective contractual termination"). Furthermore, in the event of a deterioration in the situation, based on the business assumptions shared at the beginning of the negotiations, the parties will meet to discuss the measures to be taken.

Aware of the need to prepare its future, the company undertakes to maintain a sustained effort in terms of taking on apprentices and recruiting young graduates, in accordance with the commitments made in the agreement on the management of jobs and professional careers of 23 November 2020.

Commitments in the area of training

All employees will be able to make the most of the periods of APLD for training. The company will thus be able to offer them 'training courses enabling them to strengthen their skills or acquire new ones, according to the priority training areas defined by PSA University'. For 2021, one of the priorities is to 'help employees to become active players in their own skills development, by offering them short, digital content, co-constructed with the international community'.

In addition, employees will continue to benefit from the training 'necessary to maintain their skills' throughout the period of application of the scheme.

The company pays particular attention to employees occupying 'a job categorised as sensitive' for which economic, technical and digital developments will lead to a significant change in skills or a reduction in the number of employees in the short and medium term.

Employees undergoing training during the APLD can also receive 100% of their net pay, but only if the training is part of the skills development plan, is carried out with defined training hours and is requested or approved by the manager or a training project leader.

Psychological assistance

In order to support employees and control the psychosocial risks caused by partial activity as well as possible, the agreement also provides for the implementation of a psychological assistance system (medical service, social service) and support for the managerial line. Thus, the employer will ensure that the workload and, if necessary, the objectives of employees on fixed-term contracts are adapted as a result of the implementation of reduced activity.

Use of measure

The agreement applies to about 50,000 employees of PSA Automobiles in France.

Contents

  • Employment retention
  • Training and employability
  • Working time flexibility

Target groups

Workers Businesses Citizens
Employees in standard employment
Workers in non-standard forms of employment
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
Social partners jointly
Trade unions
Company / Companies
Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Company level

Involvement

Social partners have negotiated the agreement to implement the legal instrument APLD. All representative trade unions were involved even if the CGT didn't sign it.

Views and reactions

As it is an agreement, all signatory trade unions support it. Only the CGT refused to sign.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      C - Manufacturing C29 Manufacture of motor vehicles, trailers and semi-trailers

This case is not occupation-specific.

Sources

  • 23 August 2021: Accord PSA Automobiles SA du 23 août 2021 portant sur la mise en œuvre du dispositif d'activité partielle de longue durée (www.legifrance.gouv.fr)

Citation

Eurofound (2021), PSA Automobiles SA implementation of the long-term partial activity system, measure FR-2021-36/2076 (measures in France), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/FR-2021-36_2076.html

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