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France-based carmaker Renault has cut down the number of temporary agency workers as the automobile industry in Europe has been plagued by falling demand. Temporary workers are usually the first to go when companies adjust to economic slowdowns.
Experts said the firm has lost much of its internal flexibility by trimming down the number of agency staff since the recession in 2008.
The amount of agency workers Renault relies on is not “down to zero”, but “greatly depends on each plant,” the firm told Les Echos. It did not give precise numbers, but said that each plant had introduced a “performance plan” which has also impacted a decline of agency workers at Renault.
“We take very few temporary agency workers. This is unfortunately part of our adjustment,” said Phillip Velu, a union delegate at Renault.