Areva - Reference Document 2016

EMPLOYEES

17.1 Employment

17.1.2.1.

SIX VOLUNTARY DEPARTURE PLANS IN FRANCE

Under the provisions of the Voluntary Departure Plans (VDP), 2,040 departures

were recorded, 1,450 of which occurred under various retirement or early retirement

formulas and close to 600 of which were employees who left the group.

In line with legal procedures, job cuts were defined by company, by site and by

occupational category. Eligibility for departure was then determined based on a grid

of more than 500 occupational categories. Under the employment pacts, proposed

voluntary departures may be opposed based on the protection of “critical skills”.

In this regard, all workforce movements (age-related retirement, mobility, external

departures) have beenmonitored at the corporate level in real time across the entire

scope of the plan since November 2015 in order to regulate departures in line with

specific targets, to prevent the risk of understaffing of critical skills in each business,

and to offer preventive training and employment programs:

systematic experience interviews by the direct manager for any voluntary

departure: The purpose of this interview is to identify the employee’s sensitive

skills, to establish an action plan and schedule for harvesting those skills or

effectively transmitting them to others (beneficiary, methods, etc.), and a longer-

term assessment of the skills transfer;

systems to transfer skills for older employees planning to leave the company:

○

in the formof a reminder in the company up to a maximumof 40 working days

during the period before leaving (transfers of technical expertise, transmission

of “discipline practices”, etc.),

○

in the form of a 6-month period before the work dispensation phase devoted

to skills transfer based on an analysis and a schedule drawn up with the

supervisor.

In addition, for that same scope, nearly a thousand non-VDP departures have been

recorded since August 30, 2015, chiefly for conventional early retirement in some

companies, for resignations, or for retirement before the voluntary departure plans

started.

Moreover, a thousand internal mobility assignments were attributable both to the

roll-out of the new organizations and to the redeployment of personnel during

departures recorded per occupational category of the VDPs.

Lastly, Canberra was sold in July 2016 and Elta was sold in November 2016, which

affected 979 employees.

17.1.2.2.

KICK-OFF IN MAY 2016 OF A PROGRAM TO STEER

CRITICAL SKILLS

The risks inherent in the group’s demerger and in the implementation of the

performance plan havemade it necessary to fine-tune themanagement of discipline

know-how and skills within the group. A managerial initiative to steer critical skills

across the entire NA/NP footprint was set up, built on:

a project manager for each NA and NP footprint with a network of discipline/

BU coordinators in the group’s three major categories of technical disciplines:

Engineering, Production and Services;

a new inventory of critical skills and the resources concerned after the final impact

of the VDPs, with the involvement of the field managers;

rapid roll-out of best practices inspired by the field and external benchmarks,

with a view in particular to the principle of the annual skills review;

inclusion of skills goals in the annual corporate management cycle (strategic

action plans and annual budget) for full managerial control.

A preliminary analysis was carried out by the Key Discipline Leaders, drawing on

a network of specialized coordinators across the business units. Thirteen critical

disciplines were identified in this way, and specific action plans for them for 2017

were developed. The action plans generally include a highly targeted recruitment

component, a professional training component, and a “career path” component

(Nuclear Safety, Project Management, Operations, etc.) aimed at accelerating the

acquisition of skills in the nuclear disciplines.

17.1.3.

COMPENSATION AND TRENDS

The compensation policy under which employees around the world are paid

rests on four pillars: compensate performance, be consistent with the budget, be

equitable internally and heed the competitiveness of other companies while taking

into account the group’s economic and financial situation.

In France, total compensation is broken down into:

fixed compensation: base salary, seniority benefits, etc.;

variable compensation: linked to specific jobs (hardship allowances, on-call

pay, etc.), to individual performance (bonus/variable component or allowance)

or to collective performance;

benefits: health and insurance benefits that are identical for all companies in

France;

mandatory and optional profit-sharing: based on criteria for rewarding collective

performance.

Compensation is based on industry agreements and collective bargaining

agreements. Every year, the budget for wage increases is negotiated with the labor

unions. In view of its economic performance, the group decided to eliminate salary

reviews in most countries in 2016 for the second consecutive year, but set aside a

budget devoted to internal mobility and professional promotion in those countries.

In Germany, the compensation of “tariff” employees is negotiated at the regional

level. Fixed compensation for tariff employees consists of the base salary and

variable components linked to performance.

In the United States, compensation is regulated by several state and federal laws.

The most important is the Fair Labor Standards Act (FLSA), which defines which

classifications of employees are concerned, overtime pay and the minimum

wage. Compensation is pegged to the market, including bonuses and variable

compensation, which evolve as a function of the employee’s position in the

organization. Collective bargaining negotiations resulted in the signature of an

agreement on compensation and benefits in three entities based in Washington

State andCalifornia, both states having a strong and influential labor union presence.

In China, compensation is aligned withmarket conditions. Every year, AREVA China

participates in a wage review organized by a consulting firm, which examines salary

levels for the different positions in the organization. AREVA also signed a collective

bargaining agreement on equal pay for men and women.

2016 AREVA

REFERENCE DOCUMENT

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