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The discussions between General Electric and Alstom for the sale of Alstom’s power division to GE continue. In this framework, we are coming to the end of the information and consultation period (28th October) of the Alstom European Work Council (EWF). Earlier, the EWF and Alstom had concluded an agreement about what information was required. However, the EWF must now conclude that, to date, not all of that information has been received, which makes reaching a conclusion very difficult, if not impossible. IndustriAll Europe fully supports the EWF in its demands to receive all of this information, as well as social safeguards for the employees concerned.
For almost half a year now, the European Works Forum Alstom (EWF) has been dealing with the issue of Alstom’s Power activities, which are to be sold. Following several initial bids which were also made public, the Board of the Alstom group in Paris decided, at the end of June, to continue negotiations exclusively with the General Electric group.
Immediately after this decision, several different processes that are necessary to conclude such an important corporate deal were started.
One of these important and indispensable processes is the consultation procedure with the European Works Forum. The EWF must be given the opportunity to evaluate the bid by General Electric.
This consultation was started on 16th July 2014 in Paris. In order to gain a better understanding of the complex bid by General Electric, in its entirety and without losing time, the EWF hired the French institute Secafi Alpha and the German INFO-Institut to provide expertise with regard to the takeover bid by General Electric.
The EWF and the Management of Alstom concluded an agreement stating what information must be provided to the EWF so that it can evaluate the bid. Furthermore, the agreement stipulates the meeting dates of the EWF, and the individual topics to be discussed.
Evaluating this takeover bid is a rather complex process which is particularly dependent on the availability of high quality information. As there are gaps in the information concerning the future plans of General Electric, this process cannot be carried out satisfactorily. This is partly because the necessary information must not yet be exchanged between the two groups Alstom and General Electric; the instructions from the antitrust authorities on this are clear. On the other hand, according to the Managements, important information on strategic plans for the Power activities cannot yet be provided by General Electric, because planning is still ongoing.
Ultimately, this means that the EWF is expected to give its opinion without knowing what impacts the sale might have on the future of the employees across Europe. This is not something that the delegates of the EWF can accept!
As no information has been provided about the industrial objective in Europe and about the plans regarding the current Alstom sites in the various affected countries, the EWF cannot exclude the possibility that the offer contains negative impacts for the Alstom employees. This concern is reinforced by the General Electric Management’s strict refusal to make any commitment regarding the sites and employment of the workers in Alstom’s Power division!
Despite this unsatisfactory information concerning the expected consequences of General Electric’s bid, the Alstom Management will ask the EWF in the forthcoming week to give its opinion about the offer.
IN THE OPINION OF THE EWF, THIS CANNOT BE ACCEPTED!
In order to remove some tension from this difficult situation, the EWF has demanded to negotiate an agreement with regard to social commitments. The EWF demands:
A guarantee for sites and employment throughout Europe that shall be valid for a period of time until definitive decisions have been taken concerning the future of the planned Joint Ventures.
A commitment concerning the structures of workers’ representation in Europe and in the individual countries.
Immediate involvement in the integration teams of Alstom and GE.
A continuation of the information and consultation procedure, so that the currently missing information can be duly provided to the EWF at a later stage.
We ask the Managements of Alstom and General Electric to conclude such an agreement with the EWF and industriAll European Trade Union before the planned end of the consultation!
If the employees do not receive information about their future, then they must at least be given a minimum commitment of assurance!
We require this assurance from the Management of General Electric, regarding the employees in the Power sector, but also from the Management of Alstom. In fact, the offer of General Electric impacts all employees in all sectors of Alstom. Power, Grid, Renewables, but also Transport will undergo changes due to the planned deal. Thus, the employees need reassurance.
Industrial deals worth billions must not be concluded at the expense of the employees!
Together with you, dear colleagues, along with industriAll Europe and all the trade unions in the individual countries across Europe, we will fight for the justified demands of the employees and their implementation!
European Works Forum Alstom
Paris-Levallois, October 2014
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