Five unions are taking part in the wage talks.

One, the hardline CGT, is asking for more than 8.5%, though it only formulates its demands in absolute numbers, not in percentages.

“We negotiated in a constructive manner to arrive at a balanced proposal that responds to the expectations of employees while safeguarding the performance of our sites in France,” Bruno Bertin, director of human resources for Stellantis in France, said in a statement.

The CFDT union said the proposal was underwhelming given the group’s profits and the remuneration package paid out to CEO Carlos Tavares.

Stellantis revenues rose 29% globally to €42.1 billion in the third quarter.

“Employees are suffering the full force of galloping inflation, the rising cost of energy and had expected a strong gesture from the company,” said CFDT official Christine Virassamy.

Europe’s cost-of-living crisis is putting upward pressure on wage inflation as companies across the continent face demands from workers to cushion the impact of rising prices.

The CFE-CGC union said it was taking the offer to its members but expected a further gesture from the company to boost their purchasing power.

Stellantis has said the talks are part of a broader package of measures.

In September, the carmaker said it would provide financial support worth up to €1,400 each to most of its employees in France.

Inflation in France stood at 7.1% in November on an EU-harmonised basis.