PSA Announces Average 1.9% Pay Increase

Employees of the PSA Peugeot Citroen Group have another reason to smile, as the French car manufacturer announced the negotiations with its workforce are over and that they agreed to a pay rise of 1.9%. It might not seem like a lot, but still it is something, considering the recession and the fact that the French price inflation for the past year was estimated at 0.8%.

"In a 2009 business environment shaped by the crisis that has struck the automobile industry and with a still very uncertain outlook for 2010, PSA Peugeot Citroën has enhanced employee purchasing power," the automaker said in a statement.

The change will take place starting February 1, when the group will pay a company-wide salary increase of 1%, with an increase of at least EUR18 for operators and administrative employees, representing 1.25% of the minimum base salary,

Technicians and supervisors will benefit from a 0.8% increase. PSA also agreed to boost the minimum guaranteed annual compensation (RMAG) for a full-time employee to EUR20,500 a year.

"The group’s compensation policies have led to enhanced employee purchasing power across all wage categories – in particular among those at the lower end of the pay scale – while also ensuring equal opportunity, especially between men and women and for older employees," the automaker added.

PSA also said it will hire 7,300 young people in France during 2010 and will invest in training, as their training budget is up 30%. It will also continue to invest in research and to "preserve manufacturing operations, and related jobs, in France as part of a commitment to social responsibility".