AREVA Launches Negotiations with Labor Organizations on Social Component of Competitiveness Plan

Regulatory News :

AREVA’s (Paris:AREVA) management has initiated negotiations with labor organizations to organize the social dialogue and management of employment and competencies in 2015, 2016 and 2017. Known as the "Triennial Transition Contract for Human Capital and Economic Safeguard of the Group,” this project is part of the competitiveness plan announced on March 4th. The economic situation of the company requires taking immediate cost saving measures of one billion euros by 2017.

In addition to reducing investments and improving performance in purchasing, Areva aims to reduce its labor costs by approximately 15% in France and 18% in total internationally. Achieving this objective will involve several measures: employment, compensation, production organization and work time. The precise impact on employment will be the subject of discussions with labor organizations and will depend on the savings achieved by each of the other measures.

AREVA has already announced measures concerning reduction in overhead costs and compensation, such as the profit-sharing program or short-term incentives, in order to limit the impact on employment. In any case, the management is committed to doing everything possible to ensure that any workforce optimization will be done on a voluntary basis.

In order to conduct an in-depth social dialogue with the labor organizations at all levels of the company, consultations will take place at the group level, within the various entities and then at the site level.

This first stage of negotiations should take place during May and June. It will be followed by an information-consultation phase with the relevant labor organizations.

"AREVA must begin immediately with its competiveness plan. Whatever may be the options chosen to implement the strategic roadmap and define the financing plan, it is urgent to take the necessary measures to adapt the costs of our business to the reality of its markets. I recognize the efforts that are being asked of employees. This is why I want all decisions to be made in close cooperation with all employees and their representatives. This consultation aims to jointly build the best solutions to maintain our expertise and industrial employment. During this transformation period, safety and security remain, now more than ever, the highest priority for everyone,” said Philippe Knoche, chief executive officer of AREVA.

MORE ABOUT AREVA
AREVA supplies high added-value products and services to support the operation of the global nuclear fleet.
The company is present throughout the entire nuclear cycle, from uranium mining to used fuel recycling, including nuclear reactor design and operating services.
AREVA is recognized by utilities around the world for its expertise, its skills in cutting-edge technologies and its dedication to the highest level of safety.
Through partnerships, the company is active in the renewable energy sector.
AREVA’s 44,000 employees are helping build tomorrow’s energy model: supplying ever safer, cleaner and more economical energy to the greatest number of people.

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