Psa peugeot Citroën response to concerns regarding industry association positions on China labour law reform

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PSA Peugeot Citroën response to concerns regarding industry association positions on China labour law reform
Business & Human Rights Resource Centre invited PSA Peugeot Citroën to respond to concerns raised about opposition by industry associations to proposed reforms to Chinese labour law, including in the following report:
Behind the Great Wall of China”, Global Labor Strategies, Oct 2006
A New York Times report on this issue, “China Drafts Law to Empower Unions and End Labor Abuse”, David Barboza, New York Times, 13 Oct 2006, is available here:
Further material & responses by other companies are available here:
PSA Peugeot Citroën provided the following response:

23 Jan 2007
Response to concerns regarding European companies positions on Labour law project.

  • PSA Peugeot Citroën is a member of the French Chamber of Commerce and Industry in China (CCIFC) and of the European Union Chamber of Commerce in China (EUCCC).

  • PSA Peugeot Citroën was involved in the French positioning strategy which is unequivocally in favour of the Chinese bill but seeks technical precisions.

  • PSA Peugeot Citroën did not take part in setting up a European positioning strategy.

  • As far as a car manufacturer can have an opinion upon a Chinese labour law, PSA Peugeot Citroën is in favour of the Chinese social bill.

PSA Peugeot Citroën is present in China though a commercial and representation subsidiary based in Beijing (Peugeot Citroën Automotive (China) Trade Co. Ltd), and a 50% stake in a joint venture with the Dongfeng Group undertaking the design, production and marketing of vehicles of the Dongfeng Peugeot and Dongfeng Citroën brands. The Gefco (logistics & transport) and Faurecia (car component manufacturer) subsidiaries of PSA Peugeot Citroën are also present in China in the form of joint ventures.
PSA Peugeot Citroën is based on values as demonstrates its membership to Global Compact since 2003. In this respect, the Group has adopted a continuous improvement approach regarding corporate social and environmental responsibility, reviewed yearly in its on-line sustainable development report:
The signature in 2006 of a global framework agreement on corporate social responsibility based on ILO standards is a prime example of this global approach in the social field. This agreement is currently in roll-out phase in all the Group's consolidated companies worldwide.
In China, PSA Peugeot Citroën is member of the CBCSD (China Business Council for Sustainable Development) and also encouraged its DPCA joint venture to take part in 2006 before becoming member in 2007 as DPCA intends to.
PSA Peugeot Citroën sets particular store by compliance to legislation for all its activities in China, as throughout the world. As part of its sustainable development policy, the Group goes beyond legislative requirements to meet international standards and promote continuous improvement. In addition, it uses its influence as shareholder and partner of its DPCA joint venture, in the social field in particular. DPCA developed employee health and pension schemes in 2006.
The Group is well aware that it is in its interest that Chinese social legislation progresses and is applied, particularly as concerns stepping up the protection of workers and developing social dialogue. This is why the Group welcomes the Chinese labour bill.

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