Alcatel-Lucent

European Works Council

Philippe Saint-Aubin / Arturo Garcia HidalgoMalines / MechelenSeptember 26th, 2011

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1- ECID organisation

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Alcatel-Lucent in UE

Headcount end 2010 ECID 2011 delegates

Austria 490 1

Belgium 1755 2

Bulgaria 2557 3

France 9115 7

Germany 3534 3

Ireland 128 0

Italy 2125 2

Netherlands 475 1

Poland 938 2

Portugal 192 1

Romania 1562 2

Slovakia 200 1

Spain 916 2

Switzerland 596 1

UK 1400 2

  25983 30

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Alcatel-Lucent European Works Council (EWC) status

Real name: European Committee for Information and Dialogue

Created in 1996 at the time of Alcatel-Alsthom (then 130,000 staff in Europe)

Aims at allowing an information and a transnational exchange of views at European level regarding Alcatel-Alsthom’s strategy, structure and organization, its economic and financial situation, its competitive position, and evolution of employment following namely activity transfers and changes of structure

Do not interfere with national affairs or negotiations (A-Lu or unions)

Legal status: “Article 13” of European Directive 94/95/CE. Based on french law. President is from Management (today EMEA president: Adolfo Hernandez) Status under renegotiation under new Directive 2009/38/CE. Key question is

“Consultation”. 2 court decisions in 2002 and 2007 have defined “Information”

Dissolution of former Lucent EWC in 2007. Some members later joined ECID

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ECID working30 members from countries with more than 150 Alcatel-Lucent staff.

Substitute members (in most countries) when regular members cannot attend meetings

Term is 2 years. Renewal based on headcount end of even year (2010, 12...)

2 plenary meetings per year 1 day internal, big 1/2 day with Management. Spring, Autumn (next in

October 2011) Extraordinary meetings in exceptional circumstances Working languages: Dutch, English, French, German, Italian, Spanish

“Semi-official” thematic meetings (2010: factory meeting in Stuttgart; 2011: Eastern Europe meetings in Sofia, Bydgoszcz, Optics in Vimercate) if needed

Official meetings are the tip of the iceberg. Most ECID work is made through:Questionnaires to membersWork groups on topics of common interest

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ECID Coordination Committee

5 people designated among delegates. Next renewal: October 2011

Closer contact with Management; discuss ECID organisation issues From largest subsidiaries in Europe Today

Belgium (Irene Bertrand) France (Philippe Saint-Aubin, secretary) Germany (Harald Kalmbach) Italy (Adriana Geppert) Spain (Arturo Garcia Hidalgo). Webmaster

2 meetings / year with Management. Winter, Summer + extraordinary meetings

Extraordinary meetings in exceptional circumstances (e.g. sale of EBG) Secretary elected among Coordination Committee members for 2 years

Makes sure the “shop” runs properly Working groups are chaired by a Coordination Committee

member

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ECID and unions

Most ECID members belong to a union, but ECID is not a union.

Designation of delegates is made as per national rules. May or may not be union members. No union: Slovakia, UK 1 union: Austria, Germany, Netherlands, Portugal, Romania, Switzerland Several unions: 4 France (4); Bulgaria (3?); Belgium, Italy, Poland, Spain (2).

Strong working relationship with EMF (European Metalworkers Federation) Secretary attends EMF ICT working group and when possible EMF EWC meetings EMF role still unofficial; to be made clearer in next ECID agreement

(membership) New in 2011: delegates from unions not affiliated to EMF (Bulgaria, Portugal)

EMF has appointed an « expert » or coordinator to assist ECID: Charles Sasso (Fr.) He looks after union related questions

ECID agreement Inter-union relationship Advises on union related issues

May be used to build bridges with Management in case of conflict

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ECID delegates rights and obligations

Time for mandates Official meetings: working time. Travel expenses paid by Company Daily ECID duty: based in practice in Alcatel-Lucent national unit Most important is invisible work: info, workgroups, questionnaires, report to staff

Training One training session per 2 years term. Next in September 2011 in Belgium Right for English language training

60 k€ yearly budget. Can set finance meetings, translations...

More rights for Coordination Committee: 4x2 days of country visits per 2 years term

Grey area (subject to national practice): communication to workersECID Website http://alw.web.alcatel-lucent.com/ecid/ . Help welcome!

ECID can be assisted by French Works Council accounting expert (Syndex)

Confidentiality obligation on info given as such by Management (sensitive issues)

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2- ECID history

10Alcatel-Lucent EWC (ECID) | Elewijt - September 2011

Alcatel-Lucent EWC (ECID)History –milestones and happenings (I)

EWC agreement 1996 Alcatel-Alsthom EWC agreement, based on Article 13 (UE directive 94/95/EC). Anticipation

agreement. 1996 Signature by trade union representatives (France, Germany, Italy, Belgium, Spain, UK, Austria,

Sweden). 1996 Directive 94/95/EC transposed. 2005 Lucent EWC agreement, based on Article 6 (UE directives 94/45/EC and 97/74/EC). 2006 Discussions about improving the agreement start (process not yet finished in 2011!!). 2006 Alcatel-Lucent merger. Lucent absorbed by Alcatel, its EWC ceases to exist and Alcatel’s prevails. 2011 (expected) Directive 2009/38/EC transposed.

“Against” the company 1996 First European demonstration to support negotiations for the EWC agreement. 2002, 2007 Lawsuits against Alcatel and Alcatel-Lucent on information / consultation. 2001, 2002, 2007, 2008, 2009 European Action days (joint demonstrations and other actions against

lay-offs). 1999, 2009 Demonstrations in front of shareholders’ meeting in Paris.

In collaboration with the company 2004 Participation in the Social charter of Alcatel. 2006 Telework framework agreement in Alcatel. 2011 Participation in commissions (workforce management)

11Alcatel-Lucent EWC (ECID) | Elewijt - September 2011

Alcatel-Lucent EWC (ECID)History –milestones and happenings (II)

Europe and the ICT sector 2005 Alcatel Space and Alenia Space merger (working with EMF, EU DG competition and EU DG social

affairs) 2007 Meeting at European parliament with MEPs (Strasbourg). 2010 Petition to European parliament on the competitiveness of Telecom in Europe.

Internal affairs 2005 Training trip to China. 2006 First ECID website launched. 2006 Meeting with CWA (USA trade union) 2009 First Elewijt seminar 2011 Start of cross invitations between members to attend each other’s national meetings.

Others 1996-2011 Visits to support the future of the factories (Illkirsch, Vimercate, Concorezzo, Rieti, Geel,

Bydgoszcz…). 2009-2011 Visits to support employee representatives in Eastern Europe (Slovakia, Romania, Bulgaria,

Poland).

12Alcatel-Lucent EWC (ECID) | Elewijt - September 2011

Alcatel-Lucent EWC (ECID)History - people

Chairmen (company) Serge Tchuruk (CEO and president of Alcatel) 1996-2006 Ettiene Fouques (several senior positions in ALU) 2007-2008 Adolfo Hernández (ALU EMEA president) 2008-2011 Stephen Carter (ALU EMEA president) 2011-

Secretaries (employee representation) Pierre Chanson (France, CDFT) 1996-2004 Alain Hurstel (France, CFDT) 2004-2008 Odile Denis (France, CFDT) 2008-2009 Philippe Saint-Aubin (France, CFDT) 2009-

EMF Experts Renato Losio (Italy, FIOM-CGIL) 1999-2000 Maurizio Canepari (Italy, FIOM-CGIL) 2001-2002 Jacques Debesse (France, CFDT) 2003-2006 Charles Sasso (France, CFDT) 2006-

13Alcatel-Lucent EWC (ECID) | Elewijt - September 2011

Alcatel-Lucent EWC (ECID)History - seats & workforce evolution

ECID composition evolution Workforce evolution1996 2011 delta 1996 2011 %

France 8 7 -1 58576 8584 14,65 %Germany 4 3 -1 24275 3504 14,43 %Italy 3 2 -1 12612 2114 16,76 %Belgium 2 2 9896 1722 17,40 %Spain 2 2 8025 920 11,45 %Switzerland 2 1 -1 4885 571 11,68 %UK 1 2 +1 3721 1362 (*)36,60 %Austria 1 1 2121 475 22,39 %Norway 1 0 -1 2484 <150 (**) < 6 %Sweden 1 0 -1 993 <150 (**) < 15 %Portugal 1 1 544 192 35,29 %Netherlands 1 1 563 461 81,88 %Greece 1 0 -1 375 72 19,20 %Denmark 1 0 -1 312 <150 (**) < 48 %Ireland 1 0 -1 184 <150(*) < 81 %Bulgaria 0 3 +3 - 2390Poland 0 2 +2 - 913Slovakia 0 1 +1 - 200Romania 0 2 +2 - 1491

Total 30 30 0 129886 (***) 25383 (****) 19,54 %

(*) For UK and Ireland we have a total figure of 1512, with Ireland being less than 150(**) For Sweden, Denmark and Norway we have a figure of 180 under “Nordics”(***) UE15+Norway, Switzerland (only Alcatel, Lucent figures not available)(****) UE27+Norway, Switzerland

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3- ECID activity

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ECID action in tough times (2009-2011)

2009 plan: 750M€ cost savings Outsourcing 1800 staff to HP, Wipro... 2500 job suppressions (+5000 subcontractors)

Info exchange, management meetingsGet global understanding and details of the plan

European lobbying within the CompanyPushes for greater role of Europe

Question the rationale of the planCampaign "low cost is expensive"

Mobilization of European Union authoritiesPetition to the European Parliament

Coordination of actions: European event

Support to new EU countriesSupport Romanian union creation

Industrial prospectiveMeeting of group's European plants and Optics

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ECID action in quieter times (2009-2011)Continuing action for employment

Protect staff information rights (E.g. 2011: layoffs in Optics Product Line) Liaise with national unions when jobs are under threat. « Low cost is expensive» : agreement with management on joint case studies

of off-shoring / outsourcing. Push for in-sourcing. 2011: E10/S12 co-sourcing agreement with Wipro; IS/IT with HP

Work group with Management on worldwide management of workforce and skills (plus internal tool for job market). Work in progress. Target a “charter” for EMEA countries

Continue inter-unions cooperation: exchange of information, joint actions In 2010: salaries and benefits, gender gap In 2011: pension plans, burnout (?), reaction to salary policy (0% increase),

new enquiry salary + benefits.

Integrate newcomers: 1400 from Romania in 2009, 2700 from Bulgaria in 2011. Workshop in Bulgaria (February 2011). Meeting in Poland (May 18th, 2011). Training session with ETUI (September 2011)

Improve inter unions’ coordination, exchange of info between delegatesEuropean lobbying for telecom industry with EMF and other EWCsStill to improve: interest and involvement from general staff

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ECID 2011-2013 Program

To be launched during this training session and then reviewed at plenary meetings.

Skills management, leader: Adriana Geppert. Our goal is that cost reduction does not translate into staff reduction and that everything is made to match company needs and employees’ skills

ECID functioning, leader: Arturo Garcia. How to be collectively more efficient, to better communicate and serve the employees? Which tools to use?

Burn-out, leader Irene Bertrand. How to fight overwork, stress, and psychosocial risks by addressing not only their effects, but their causes in the company?

Employment, leader: Harald Kalmbach. How to develop employment in A-Lu Europe and resist the out-sourcing and offshoring plans?

Lobbying for the European industry: leader: Philippe Saint-Aubin. Make the EU authorities aware of the risks faced by our industry in the Union. Push for more political involvement.  

Corporate Social Responsibility: leader: Isabelle Guillemot. ECID participation in new topics like corporate governance, human rights, labour practices, the environment, fair operating practices, consumer issues, and community involvement and development.

Others: staff status, salaries, pensions, keep contact with former A-Lu entities,...

ECID agreement update: negotiation with Management will take place when EWC directive is adapted in the French law. Target date for completion: spring 2012.

Thank you!