Thursday, May 7, 2015

Areva will remove between 5,000 and 6,000 jobs worldwide – The World

Le Monde | • Updated | By

All that was clear to the employees of Areva, in big trouble after a loss of 4.8 billion euros in 2014, the group Nuclear suffer significant job losses. They now know what to expect: they concern between 3 000 and 4 000 employees in France by 2017 and 5 000 to 6 000 people in total in the world on a gobal workforce of 45,000 people, such as announced Thursday, May 7, the human resources director, François Nogué.

It now remains to be done without “social damage”. The government, through the voice of minustère economy, said on Thursday morning that he expects the “an exemplary social dialogue” . “The Government has taken note of the will expressed by the management of Areva to develop a performance plan and competitiveness is not only based on a reduction in personnel costs, even if these are measures indispensable “, said Beryc, in a written statement sent to AFP.

€ 1 billion in savings over three years

It is in this spirit that Philippe Knoche, the CEO, and François Nogué (a defector from the train severed the tough restructuring), opened on Thursday, negotiations with unions to “structured social dialogue and management jobs and skills “ between 2015 and 2017.

This declining enrollment is part of the ” competitiveness plan “ announced March 4th, to rectify the catastrophic financial situation of the company. It provides for 1 billion euros in savings over the next three years. Around 400 million euros are expected to slow investment, improving the purchasing policy and productivity growth.

The remaining 600 million will, according to Areva leaders , a 15% reduction in personnel costs in France and 18% worldwide. Mr Knoche unions confirmed Thursday that management was committed to “do everything so that everything is carried out on a voluntary basis” .



Areva in turmoil

Do not compromise the safety and security

The impact on employment will depend on the savings achieved using other levers such as working time, the organization of production and remuneration (salaries, bonuses, profit sharing …) underlines management. “We will put a priority on maintaining skills in our plants and design offices,” cautions officer.

These changes should not jeopardize the safety and safe operations and equipment, says Knoche while the Nuclear Safety Authority (ASN) has revealed “very serious defects” on the tank of the EPR reactor being built in Flamanville (Manche).

Those are the support functions [legal, accounting, human resources, IT, communication ...], already affected during the first restructuring plan launched in 2012, which will put the most . for contributions

The management points out, moreover, that the age is “favorable” : in France, nearly 3,000 employees have at least 57 years, which will play on age measures. It is given until June to negotiate the redundancy plan with the trade unions at the group level, companies and individual institutions.

“first step” that will followed by “information-consultation phase” of representative bodies.

A Place to define, alongside EDF and Engie

Mr. Knoche did not want to wait for the other folders regulation – including the sale to EDF of certain activities like engineering reactors – to initiate these negotiations. Given the situation of near bankruptcy Areva “it is urgent to take the measures necessary to adapt the costs of our activities to the reality of their markets” , he says.

And four years after the Fukushima disaster, these markets remain very depressed. Revenues Areva melted in Japan, where all nuclear power plants are shut down since 2011. It has fallen sharply in Germany, which is gradually emerging from the atom, and the United States, where electricians turn to gas, cheaper than nuclear. Three countries where the group was highly developed.

The job cuts have already begun abroad. In Germany, where is located one of its largest subsidiary, Areva announced in mid-March 1500 the elimination of positions by 2017. The group also dismissed 170 employees in Niger, on the site of the mine Imouraren uranium whose work was suspended in August 2014 pending a price recovery of this ore.

Arbitration expected during May

Areva must develop and submit to the government in the coming weeks, his “strategic roadmap” now to ensure its future compromised very . This is the site of Areva in the French nuclear industry, which has to be redefined, alongside EDF but also Engie (formerly GDF Suez), which is eyeing the activity maintenance-service of Areva’s reactors. A nuclear sector where the group Gérard Mestrallet employs 6,000 employees across Cofely Endel or Tractebel Engineering.

But a judge EDF administrator “unthinkable” to access qu’Engie as Areva, the maintenance market for engines of its competitor in the “major overhaul” to modernize and secure the 58 EDF reactors by 2025.

For now, the State shareholder to 87% of Areva did not decide between a scenario where only minimum engineering at EDF reactors would pass, or the most radical scenario where all the activity and reactors Areva NP Services (20 000) would be taken up by the electricity group.

This arbitration should take place during May, during a “summit” bringing together the bosses of EDF and Areva around the President Republic, the head of government and ministers, Emmanuel Macron (Economics), Ségolène Royal (energy) and Michel Sapin (finance).

The mines in question

Other sensitive issues remain on the table, including the disposal of other assets. The proposed sale of part of the mining activity, mentioned in 2010, returns to the front of the stage.

Areva operated fields in Kazakhstan, Niger and Canada. Despite difficulties, this activity may be interested investment funds, sovereign wealth funds or industrial, including Chinese. But Areva should remain majority there, the state holding that the supply of uranium from French power plants is a strategic activity

The question now arises:. If Areva is relieved of the design-manufacture of reactors, maintenance services of central and part of its mining division, will he survive the only activity of manufacturing and treatment and recycling of fuel in big trouble today?

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