Michelin agrees 35-hour week

Michelin, the French tyre-maker has concluded an agreement on the introduction of a 35-hour week for its 27,000 employees. The company is one of the last major manufacturing businesses to reach agreement on cutting working time and the deal, which was signed earlier this month, follows more than a year of difficult and at some times bitter negotiations.

The agreement, which was backed by 60% of the company's employees and signed by the CFDT, one of the two main union confederations in France, comes into force on 1 May. It provides for an additional 15 rest days over the course of the year, although greater flexibility has been introduced into working patterns in order better to meet market changes. Working time is annualised over the year and the working week can range between four and six days. This means that around 15 Saturdays a year may be worked in future.

The agreement, like most 35-hour deals, confirms that the cut in working time will be introduced without loss of pay. However, unusually it does not provide for a pay freeze or pay moderation. Pay goes up by 3.5% and 4.0% this year together with a 1.0% bonus on the signing of the agreement. For 2002 and 2003 the company has promised that real pay levels will be maintained. Prices are currently increasing at an annual rate of 1.4% (February).

Michelin has also undertaken to recruit at least 1,000 permanent new staff over the next 18 months.

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