Groupe PSA: Meeting between Management and the Unions to Negotiate the 2018 Jobs and Skills Alignment System (DAEC)

Regulatory News:

Groupe PSA (Paris:UG):

The New Momentum for Growth agreement, signed in July 2016 with five trade unions representing 80% of employees, aims to reconcile the performance objectives of Groupe PSA’s France-based operations with the protection of employees' best interests.

As part of the agreement, the Group defined and set up a responsible employment policy in cooperation with the unions, based on securing the professional future of its employees, externally and internally, in particular through the application of a Jobs and Skills Alignment System (DAEC).

Negotiations were held on 9 January to define the 2018 system, which will be in line with the 2017 plan expiring on 31 January. The 2018 DAEC will be based on the same measures provided under the New Momentum for Growth agreement, and takes regulatory changes into account.

Its scope covers solely the members of the corporate workforce.

The negotiations provided an opportunity to discuss the results of the 2017 DAEC and note that the Group had fulfilled all commitments made with the trade unions:

• More than 1,200 people have been hired under permanent contracts, including 200 in manufacturing
• Around 2,500 young people were hired on internships or work-study contracts and 54% of entry-level positions were filled by the students trained in the Group through these programmes
• More than 6,000 internal transfers
• More than 1,400 internal courses to retrain employees in new professions within the Group
• 1,500 employees opted to receive support to create their own business, take leave to retrain in new skills or seek out other secure outplacement opportunities.

In keeping with these measures, Groupe PSA has made the following commitments for 2018:

• More than 1,300 new hires under permanent contracts, including 400 in manufacturing, to support strong demand for new vehicle models
• At least half of entry-level positions filled by the Group’s former interns or work-study employees, with the hiring of at least 2,000 young people
• More than 6,000 internal transfers and over 1,000 internal retraining courses
• Secure around 1,300 outplacements (through retraining leave, business creation and career transition passports).

The number of new hires and voluntary outplacements will therefore be balanced, and commitments to internal retraining, internal transfers and secure outplacement options will be maintained, backed by the same support programmes.

Following the meeting, Xavier Chéreau, Groupe PSA Executive Vice President, Human Resources, said: "Working together is an integral part of our human resources policy. We have to work alongside employee representatives to build this dynamic system which is essential to our Group’s transformation, its performance and, consequently, its sustainability. Our Jobs and Skills Alignment System (DAEC) has proved effective in terms of both its contribution to the company’s performance and the welfare of its people. Every year, the DAEC enables eligible and motivated employees to explore new work experiences, both inside and outside the Group, while securing their professional future.

About Groupe PSA

The Groupe PSA designs unique automotive experiences and delivers mobility solutions to meet all client expectations. The Group has five car brands, Peugeot, Citroën, DS, Opel and Vauxhall, as well as a wide array of mobility and smart services under its Free2Move brand, aiming to become a great car maker and the preferred mobility provider. It is an early innovator in the field of autonomous and connected cars. It is also involved in financing activities through Banque PSA Finance and in automotive equipment via Faurecia. Find out more at groupe-psa.com/en.

Media library: medialibrary.groupe-psa.com / @GroupePSA

Communications Department - www.groupe-psa.com/en - +33 6 61 93 29 36 - @GroupePSA

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