Renault Confirms Its 'Crisis-Period Labor Deal' Proposal

PARIS, FRANCE – March 13, 2009: Renault management and trade union representatives met on March 10, 2009 to negotiate methods for short-time compensation at Renault s.a.s. The meeting follows the February 23 proposal for a “crisis-period labor deal” based on solidarity, by maintaining net pay of up to 100% for all employee categories, and fairness, through identical contributions from all staff members. The last meeting will be held on March 17 to finalize the deal.

Renault management has reasserted its ambition to implement a crisis-period labor deal with two priorities: protect employment by extending short-time work to all Renault s.a.s. staff and maintain the compensation of each employee.

Based on a principle of solidarity, the management confirmed that engineers and executives together with production and non-managerial staff with salaries based on a fixed number of hours, whose salary would be maintained at 100%, would contribute to a crisis management fund through the non-acquisition of one day of “individual time capital” (“capital temps individuel”, or CTI) for five days not worked (not exceeding eight CTI days per year).

Production and non-managerial staff whose salaries are not based on a fixed number of hours could also receive their full net monthly salary, thanks to a supplement from the crisis-management fund and from the purchase, on a voluntary basis, of one CTI day for every five days not worked.