Renault Voluntary Project - Plan For Voluntary Departures At Renault S.A.S.

PARIS – October 8, 2008: Following the meeting of the Group Works Council on October 3, 2008, all the site works councils of Renault s.a.s. were informed and consulted on a more detailed version of the draft departure plan entitled "Renault Voluntary Project", on October 6 and 7. This stage marks the end of the consultation of social partners and the start of plan deployment at the sites. Advisory offices will be put in place from mid-October.

The project to be submitted to Renault s.a.s. employees takes account of remarks made by the social partners following the meeting of the Group Works Council on September 9. It includes reinforced support and assistance measures for employees opting for voluntary departure, particularly at the Sandouville site. As its name suggests, “Renault Voluntary Project” is founded exclusively on a voluntary approach from staff. The project targets 3,000 voluntary departures of staff not directly linked to production, along with approximately 1,000 employees from the Sandouville plant, including production personnel. Support and incentive measures will be available through April 30, 2009.

1. Departure to pursue a professional or personal plan
In addition to an amount that is equivalent to the contractual redundancy payment, employees who take up this offer before January 31, 2009 will receive an incentive bonus worth six months’ salary, while those doing so after that date will receive four months’ salary. Additional technical assistance will be available for people wishing to create a business (financing, paper work, management course, etc.). They will also receive a business creation allowance worth up to €12,000, plus €3,000 for the recruitment of a departing Renault employee as part of this project.

2. Voluntary retirement
Employees who are eligible for their point-based retirement may take voluntary retirement with an additional allowance of three months’ salary on top of their contractual retirement indemnity. In order to allow a greater number of employees to retire, Renault will also help people taking retirement by financing the purchase of up to 12 quarters of contributions and additional pension points.

3. Redeployment leave
This period, during which the employee would be paid but will not work, would be equal to the notice period plus 3 months. Redeployment leave will run for a maximum period of nine months. Employees will be able to follow up to 300 hours of training to help them transfer to a new sector or specialization, or to update their skills. They will be paid 100% of their salary during the period corresponding to their notice, then nearly 80% of their net salary. In addition to an amount that is equivalent to the contractual redundancy payment, a complementary bonus of three or two month’s salary will be paid (depending on the date of the employee’s decision) when he/she leaves the company.

4. Return to the home country
Renault will facilitate the return of any foreign employees outside the European Union who consider the plan an opportunity to return to their home country. In this case, foreign employees would benefit from a career evaluation, training (up to 300 hours), and financial assistance of between 15 and 24 months’ salary to help them succeed in their project. All employees taking voluntary departures will benefit from preferential Renault staff rates for vehicle purchases for a period of one year. This period is unlimited for personnel having worked for Renault for 20 years and those taking their retirement. Any negative collective work time balances of employees at industrial sites will not be counted in their departure settlement. In addition to these measures, part-time work for end-of-career staff, as well as possibilities for long-term leave will be proposed.

Measures specific to Sandouville
The recent decision to produce a light commercial vehicle at Sandouville in 2012 ensures the development prospects of the site in the long-term. However, to preserve the competitiveness of the plant in face of the deteriorating commercial situation, the implementation of voluntary departures remains a necessity for 1000 people, including people working on production. Renault management is taking into account the particular situation of staff at Sandouville, most of whom are production workers. Because these employees need more support in their professional reconversion, “Renault Voluntary Project” includes the following special provisions:

- The incentive bonus for employees pursuing a personal or professional project is extended to 7 months’ salary for staff taking up this offer before January 31, 2008.
- Employees accepting transfers to other industrial sites receive a bonus of three to five months’ salary, according to the location of the site.
- Nine-month redeployment leave is paid at 100% for six months.
- A principle of solidarity between sites has been established : some measures of volontary departures will be applyed to employees of other industrial sites if they are replaced by a Sandouville production employee.

Advice Areas for close professional support
Advice Areas will be set up at each Renault s.a.s. site and run by teams of advisors from external firms and internal Renault advisors. A dedicated website area and toll-free number will be available for employees to contact advisors in a neutral and confidential manner.

The advisors will provide interested employees with advice, information and support, in total confidentiality. Together with employees, they will look into any training action that will help employees find a new job outside the company.

Employees will also receive help in specific areas, such as CV writing, job hunting techniques and job market appraisals by sector. Theme-based workshops may also be organized collectively, depending on needs.

Gérard Leclercq, Senior Vice President Human Resources, Renault Group: “Faced with the worsening economic environment and the necessity of adjusting our workforce in France, we sought to draw up a departure plan that gives our employees a real choice, and coincides with their personal career plans. As a company that cares for its long term development as well as for the interests of its employee’s, we are committed to implementing a close, solid and professional support system and to helping each person build his or her professional project as best we can.”