Areva - Reference Document 2016

17

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: p 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; p 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. 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: p variable compensation: linked to specific jobs (hardship allowances, on-call pay, etc.), to individual performance (bonus/variable component or allowance) or to collective performance; p benefits: health and insurance benefits that are identical for all companies in France; p 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. p fixed compensation: base salary, seniority benefits, etc.; 17.1.3. COMPENSATION AND TRENDS

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: p 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; p a new inventory of critical skills and the resources concerned after the final impact of the VDPs, with the involvement of the field managers; p 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; p 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. 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.

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2016 AREVA REFERENCE DOCUMENT