A French appeals court has suspended a Peugeot Citroen restructuring plan that would see 8,000 job cuts, union lawyers said on Tuesday.
"The negotiations are not suspended and will continue to make progress," a company spokesman said, according to Reuters.
In a court ruling on Monday, the Paris Appeal Court ordered a temporary suspension of the restructuring until the group completes worker consultations at two sites belonging to parts division Faurecia .
France's largest automaker is struggling to compete in Europe's stagnant car market and as a result, says they have to cut jobs and close its Aulnay-sous-Bois factory.
The CGT union had argued that the management of PSA Peugeot Citroen had not fulfilled its legal obligations to inform staff representatives and in particular the European works committee.
A Peugeot spokesman, Pierre-Olivier Salmon, said the decision would have little practical effect on the company's plans because "we're only in the negotiation phase now, anyway." The appeals court left untouched the tribunal's dismissal of the union's request to overturn Peugeot's restructuring plan.
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