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The government has proposed its own law to loosen labor regulations and is also pushing companies to negotiate better deals with their employees, as Renault has. The company said in a statement that Chairman Carlos Ghosn signed the deal with representatives of the CFDT, CFE-CGC and FO unions Wednesday. Only the CGT union did not sign. Renault said the deal would make its French plants more competitive and allow it to move production back to the country. It was that key commitment that gained the government's support of the plan. Renault has promised to make at least 710,000 vehicles per year in France by 2016, compared with the around 530,000 produced last year. That would bring its factory utilization rate to over 85 percent -- well above the European average of 74 percent.
[Associated
Press;
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