Alstom agrees to try to avoid redundancies

Energy group Alstom signed its second European framework agreement with the European Metalworkers' Federation (EMF) on 24 February, 2011. The agreement deals with the restructuring process being carried out by the company, which has 93,500 employees. Although Alstom announced 4,000 job cuts at the end of 2010, it said it planned to do everything it could to safeguard employment. However, in March, it announced a further 1,380 redundancies in its transport division.

Background

The new European agreement, signed on 24 February 2011, is the second European framework agreement that the company has negotiated with the European Metalworkers' Federation (EMF). Both parties were involved in the agreement on employment guarantees concluded in 2010, which involved Alstom, Areva and Schneider Electric (EU1007011I).

Safeguarding employment

The agreement deals with the company’s restructuring process. Alstom announced 4,000 job cuts at the end of 2010, (detailed in an ERM fact sheet), and in March 2011 the loss of a further 1,380 positions in its transport division (detailed in an ERM fact sheet). Alstom states that it plans ‘to adapt its capacity to this situation […] and to avoid redundancies as much as possible’. The agreement proposes a list of measures to avoid redundancies such as: developing internal mobility within the group, helping employees to retrain,; implementing short-time work or developing part-time work .

The agreement states that, once the company declares that all possible alternatives to keep employees have been exhausted, Alstom and employee representatives or trade unions will both enter into a negotiating process in the countries affected, aiming in good faith to reach a solution, and trying to avoid redundancies as much as possible.

Negotiation at national level could, for example:

• support mobility in the company’s different units;

• encourage voluntary departures when possible;

• support the creation of positions in neighbouring companies when this enables the hiring of Alstom employees.

Anticipation of developments in the group

To manage the restructuring process, the agreement also introduces a process of information and consultation, stating that the group’s European Works Council (EWC) ‘will be regularly informed and consulted about the company’s development’. The agreement, following the requirements of the amended 2009 EWC directive, explains that the EWC must be informed before, or at the same time, as any national developments, but not after, and adds that a national consultation process must not end before the closing of consultation at European level. The EWC is to receive annual company forecasts for the next two to three years. Key figures by sector will also be regularly reported to the EWC.

Where relevant, the agreement provides for the launch of a consultation process which conforms to the definition of consultation in the recast EWCs directive. At national level, consultation regarding local activities will be undertaken according to the forecasts, headcount levels and skill requirements.

Focus on employee competency

The agreement also covers workforce and competency planning, in line with the French compulsory practice of agreement on forecast management on employment and competencies (GPEC, in French, 89Kb PDF). Alstom and French unions signed an agreement (in French, 5.5Mb PDF) on this matter in January 2009, which was considered as a basis during the negotiation of this European agreement.

The agreement contains a range of tools, such as:

• an individual yearly meeting for employees to evaluate their technical skills and to discuss any career and development plans;

• a mid-career assessment (after 20 years of employment) to discuss employees’ professional goals and development;

• specific management of the end of the employee’s professional career during the last three years of employment. The employee can be asked if they want to contribute to mentoring trainees and apprentices;

• a ‘training passport’ which lists the training undertaken by the employee within the group;

• a target for each employee to take at least one training session (lasting at least three days) every three years;

• helping employees in jobs which are dwindling with training, reclassification or personal career projects.

Commentary

This is a significant agreement, both in terms of its scope – it covers 30 countries – and its content. It provides a framework that aims to enable the group and its employees to cope with the effects of the economic crisis.

Frédéric TURLAN, HERA