Finalizing our 2006 restructuring in France

Interview with Thierry Denjean, Human Resources Director, France Region

After the complex situation we experienced in Rennes, and the issues brought about by a lack of understanding, it was really key for us, facing this new restructuring plan, to split the economic and the social debate, giving time and opportunities to our employees to anticipate social consequences of the restructuring, with the aim to avoid implementing a dismissal procedure.

On one side, we had to talk economics with the unions, while on the other side, we needed to help people start thinking about possibly changing careers and re-training. We had a worldwide restructuring plan to deploy. At that time, we only knew which fields were going to be affected, not the specific jobs. So we decided, with our social representatives, to give all the employees in those fields the tools to start thinking about internal or external re-training.

Meanwhile, we were putting the more detailed restructuring plan together. For this, we signed an agreement (called a GER), and set up confidential centers (called CRSP – Centre de Ressources Services Partagés) in Grenoble and Rousset. These included business experts who were able to work with our employees on their individual career plans.

The average age in ST is quite young, and therefore many employees were interested in setting up their own, new companies. Those that were interested in doing this had to present their case to a joint committee made up of ST management, union representatives and external experts.

We arranged for experts to support employees’ new companies for two years, and negotiated financial aid, tax exemptions and training with our institutional partners. We also negotiated a special status with the administrative departments (assedic and DDTE) so that, if people did leave their jobs, they wouldn’t lose out on their social benefits.

 

Restructuring plan results – France region
End of temporary contracts (fixed-term or interim contracts, subcontracting, etc.)	588
2005 departures (turnover)	111
Internal transfers to other activities	71
Individual validated projects within the GER* Plan**	228
- Internal mobility inside France	19
- Mobility to Asia	2
- Outplacement (employees who left ST voluntarily to pursue work opportunities outside ST)	51
- Company creation	82
- Training (it concerns people who took the opportunity to return to school or university in view of moving to new activities)	18
- Personal project (private life choice, e.g.: family choice, departure abroad)	9
- Early-retirement GER*	29
- RITT-temporary worktime reduction	18
Total number of people involved	998
(*) Gestion de l’Emploi dans le cadre des orientations de Restructuration, Restructuring manpower planning agreement (**) Excluding internal mobility within same organization (manufacturing people from test activity)