PSA PEUGEOT CITROËN SIGNS GLOBAL AGREEMENT TO EXPAND THE SCOPE OF BEST PRACTICES IN HUMAN RESOURCES WORLDWIDE
02 March 2006 - Peugeot

The PSA Peugeot Citroën management, the International Metalworkers’ Federation (IMF) and the European Metalworkers’ Federation (EMF) have today signed a global framework agreement on corporate social responsibility.

The agreement involves some 85 trade unions that belong to the federations. It is to be signed separately by each of the unions in the major countries in which the Group employs workers.

As activities are becoming increasingly international, this initiative highlights the Group’s desire to expand best practices in human resources to all its subsidiaries worldwide.

The agreement reflects PSA Peugeot Citroën’s commitment to fundamental human rights while expanding the scope of its requirements to suppliers. It also sets out the Group’s contribution to the economic and social development of the regions in which it operates by prioritising local human resources whenever possible. Lastly, the European Works Council will be expanded to form a ''Global Council'' that will play a key role in ensuring that these measures are applied smoothly.

The agreement includes the following provisions:

Promote and comply with human rights and, in particular, employees’ right to organise and form trade unions as they so choose and a ban on all types of forced labour and child labour. While the agreement sets the minimum age for access to employment at 18, it also sets forth a possible minimum age of 16 for countries whose educational systems are not yet sufficiently developed, as well as waivers for alternating work-study training programmes.

Promote and follow best practices in human resources, especially in the fields of social dialogue, health and safety in the workplace, remuneration, apprenticeships, the employment of women, recognition of skills and social protection. As such, the agreement states that all countries must endeavour to develop working conditions that are in line with the highest international standards. Likewise, performance-based compensations will be implemented for all employees worldwide.

Extend the equal opportunity and treatment policy to all countries worldwide. PSA Peugeot Citroën established its position as leader in a number of Western European countries in increasing the employment of women and promoting the diversity of skills when the company signed agreements with all trade unions in 2003 and 2004.

PSA Peugeot Citroën’s commitment to making compliance with human rights a critical factor in supplier selection. In order to ensure compliance, the provisions of the agreement that concern human rights will be sent to all suppliers, subcontractors, industrial partners and distribution networks.

The extension of the European Council to representatives of all worldwide subsidiaries employing more than 500 people. The Council, which includes the Group Council required by French law, was extended to all countries in the European Economic Area in 2003. From this year, representatives of Argentina and Brazil will also participate in Council meetings. The extended European Council will serve as a forum for exchange on the Group’s strategy and international development.

The framework agreement, effective immediately for the entire consolidated automotive division, has been extended to the finance, transport and logistics divisions in all the countries where the Group employs workers. The agreement will be applied through country-level action plans drawn up in conjunction with the trade unions. A three-year monitoring cycle will ensure that the agreement is applied smoothly.

PSA Peugeot Citroën has a workforce of 210,000 people worldwide. The Group’s growth is based on socially-responsible actions and behaviour as set out by the international standards of the International Labour Organization (ILO), which are also included in the United Nations Global Compact. The Group’s commitment to these issues demonstrates a balanced approach to achieving economic performance while ensuring human progress.

According to Human Resources and Relations Executive Vice President, Jean-Luc Vergne; ''The approach taken by PSA Peugeot Citroën is more than just a unilateral corporate decision. This agreement involves senior management and all of the trade unions in all of the countries where we operate. It is a major contribution to the sustainable growth of our Group, not only in terms of ethics and human rights, but also in terms of corporate social responsibility in all of the regions in which the Group operates as well as relations with suppliers, partners and sales networks. This agreement also marks a new era in the social dialogue that reflects the international development of our Group.''

www.peugeot.co.uk

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