PSA Peugeot Citroen (UG), Europe’s second-biggest carmaker, will pay a combined 40 million euros ($50 million) to former employees who accepted early retirements, a union representative said.

“This concerns about 3,000 employees, and they will get from 8,000 to 15,000 euros each,” Christian Lafaye, a leader of the FO union at Paris-based Peugeot, said in a phone interview. The sum will be transferred in about 30 days, he said.

Peugeot’s early retirement program allows its French employees to retire at the age of 55. Associated compensation was raised following a recalculation in 2008, and some employees didn’t benefit from it, Lafaye said. The manufacturer decided to extend those benefits to pensioners who had stopped working at the company under the program since 1999, he said.

Peugeot fell as much as 3.7 percent to 7.54 euros, the lowest intraday price since at least October 1989, and was trading down 3 percent at 1:23 p.m. in Paris.

To contact the reporter on this story: Mathieu Rosemain in Paris at mrosemain@bloomberg.net

To contact the editor responsible for this story: Chad Thomas at cthomas16@bloomberg.net