ST agrees to halve French production due to Covid-19

March 23, 2020 //By Peter Clarke
ST agrees to halve French production due to Covid-19
STMicroelectronics has reportedly agreed to cut production in its French factories by up to 50 percent because of workers' concerns over Covid-19.

Europe's leading chip company has struck an agreement with French unions to limit production and allow reduced numbers of workers to go into work, according to a Reuters' report that references union officials as sources. The agreement lasts until April 2.

The agreement allows workers to stay at home and receive all of their salary whether they work or not. Staff are also being paid travel costs for journeying to work by car and receiving regular checks on body temperature.

The account quotes Jean-Pierre Kiledjian, the leader of the CFE-CGC union, as saying: "We signed an agreement yesterday [March 18] to implement a plan to reduce our activity. The goal is to reduce activity in order to reduce the number of people on production sites as much as possible."

The head of the CFDT union at STMicro confirmed the signing of the agreement, Reuters said. The two unions represent more than half of ST's workers in France.

The CGT union rejected the agreement insisting that the company should simply close all its sites, Reuters said.

ST had been working flat out but productivity had then started to decline as workers started to stay away from work and self-isolate in line with French government instructions.

Related links and articles:

www.st.com

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