Framework accord on social rights at Total

In November 2004, management at the French energy multinational Total and representatives of European-level trade union organisations signed a framework agreement on social rights within the group. The accord covers information and consultation, training and competence development and the procedures to be followed in the event of changes to the business that will have an impact on employment.

A framework agreement was signed on 22 November 2004 by management at the French energy multinational Total SA and representatives of the European Mine Chemical and Energy Workers’ Federation (EMCEF), the European Federation of Managers in the Chemical and Allied Industries (FECCIA) and the European Federation of Executives in the Sectors of Energy and Research (FECER). The accord contains a range of general strategic guidelines to promote employee dialogue in the group’s European businesses. It covers three main areas:

• the expansion of social dialogue, through the provision of improved information and consultation between management and employee representatives, within the framework provided by legislation and collective agreements in each country covered by the agreement;

• long-term management of employment and workforce competences and the provision of training so as to enable the organisation to keep pace with technological change, to meet the needs of the company and satisfy employees' need to develop their own careers; and

• principles and actions to be undertaken in the case of changes to the structure of the organisation that will have an effect on employment, working conditions or social protection.

General principles

The preamble to the accord states that many European companies with transnational operations feel the need to have a dynamic economic and social policy to enable them to react to the changing world in which they operate. The Total group already has a code of conduct and states that it adheres to the principles contained in a range of international instruments.

The agreement stresses that social dialogue in the company is vital if it is to put into place, maintain and develop its economic and social balance and meet the needs of employees. Further, training and lifelong learning is considered to be a key tool in achieving this.

Scope of the agreement

The agreement applies to all of Total’s autonomous legal entities as identified in its European Works Council (EWC) agreement of 20 March 2001, as long as they have an employee representative function. If they do not, Total group management makes a commitment to respect the provisions set out in this agreement in relation to these legal entities.

Social dialogue and information and consultation

The agreement states that Total’s EWC is responsible for handling matters with a European-level dimension. However, it will respect the prerogative of national-level employee representative bodies.

The signatory parties stat their commitment to maintain and develop the level of dialogue in the EWC and in the company’s legal entities. Total management make a commitment to improve information to and dialogue with the EWC on plans for change at European level, trying as far as possible to anticipate developments. In the case of exceptional circumstances, a meeting of the EWC’s 'liaison office' will be convened, followed by an extraordinary meeting of the EWC if the liaison office or a majority of EWC members so wish, although this must not hamper consultations at national level. The information and discussions held with the EWC may be passed to national-level employee representatives.

If the legislation governing a country in which Total is envisaging a major restructuring exercise permits recourse to experts, employee representatives may forward a copy of the experts’ report to the EWC liaison office, although this may not delay any aspect of the information and consultation procedure.

Training and competence development

The parties to the agreement state that the development of workforce competences during an employee’s entire career rests on four priority areas of action:

• identification and anticipation of competence and qualification needs;

• recognition and validation of competences and qualifications;

• information, help and advice; and

• mobilisation of financial resources from the Total group, employees and public authorities.

Total group management will therefore encourage national management to put in place systems that anticipate training needs and stipulate 'dynamic' dialogue on this issue. It will also encourage its national managements to anticipate technological, industrial and environmental change, in cooperation with local employee representative bodies, followed by action aimed at adapting to these changes.

At European level, the signatory parties agree to create a framework, though negotiation at EU level, within which professional mobility within Europe can be encouraged. They also agree to create projects within the framework of the European Social Fund.

Total group management makes a commitment that there will be no discrimination against employee representatives in terms of career progression and pay.

Restructuring and its effects on employment

Total group management makes a commitment to inform employee representatives as soon as possible of any plans to make changes to the structure of the business that are likely to have an impact on employment. If closures of parts of its operations are envisaged, management makes a commitment to ensure that the closures take into account the consequences for employees. At local level, action will be undertaken to ensure that the affected employees are offered internal or external redeployment.

All effects of restructuring on the industrial environment surrounding the operations that are to be restructured will be monitored by the group and Total will endeavour to put into place measures to encourage investment into areas that have been affected by its restructuring, in order to limit the economic impact of its own restructuring exercise.

Implementation

The implementation of the agreement will be assessed twice a year at meetings of the EWC’s liaison office. The discussions at these meetings will form the basis of an annual report, to be disseminated to all Total group legal entities.

If any implementation difficulties arise, the signatory parties will have the right to request a meeting with the management of the Total group aimed at solving the problem. In the case of disputes over the content of the agreement, the French version will apply.

Commentary

This is a significant agreement at a company that already has a relatively well-developed system of social dialogue. Total has expressed its satisfaction with the agreement: Jean-Jacques Guilbaud, senior vice-president of human resources and corporate communications at the group stated: 'For the first time in the history of the group, we have signed an agreement that will be applied in the enlarged European Union and the European Economic Area. The agreement should enable dialogue with employees to play an important role in supporting economic, organisational and societal change.'

This accord should be seen in the context of increasing globalisation and the constant enterprise restructuring that is taking place among European companies. It addresses the issue of how to anticipate restructuring events and keep employee representatives well informed of potential events as far in advance as possible. It also stresses that in order to keep pace with a changing world, great emphasis should be placed on competence development and lifelong learning. This will also increase the employability of workers who are in danger of losing their jobs as a result of restructuring exercises. Finally, the firm acknowledges that it has a wider responsibility to the environment in which it operates, pledging to take action to ensure that areas affected by any of its restructuring exercises will attract alternative investment. (Andrea Broughton, IRS)