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    Schneider Electric Signs Framework Agreement on Jobs Planning System

    Rueil-Malmaison (France), July 2nd, 2003 – In response to a global economy shaped by persistent weakness in developed markets and the unfavorable appreciation of the euro, Schneider Electric is going to accelerate the transformations required to redeploy its businesses, resize its manufacturing base and adjust its resources, in order to adapt to the enduring changes in its business environment.
    The objective is to implement an organization that enables the Company to respond effectively, in line with its strategy, both to fluctuations in the business cycle and to its customers’ future needs. The redeployment and restructuring programs will lead to changes in the structure and number of jobs, particularly in France.

    > A framework agreement concerning a Jobs and Skills Planning System
    Schneider Electric management has signed a framework agreement (accord de méthode) with employee unions concerning a Jobs and Skills Planning System (Gestion Prévisionnelle de l’Emploi et des Compétences - GPEC). The agreement is designed to create a structure to support dialogue with employee representatives (partenaires sociaux) concerning the necessary changes. This structure will be complementary with existing Employee Representative Bodies (Instances Représentatives du Personnel).

    > As part of the agreement, a Joint Information, Dialogue and Negotiation Group has been set up to:
    > Create a dialogue with the unions about the discussions underway in the Company, which could have an impact on jobs.
    > Define working methods and operating procedures to implement a GPEC system, which the Company needs for the future.

    An initial meeting for an exchange of views between management and the Joint Information, Dialogue and Negotiation Group was held on June 23. The first projects concerned:
    > Transfers of technical teams from the Paris region to Grenoble.
    > Discussions about the organization of European information technology resources, with the possibility of partial outsourcing.
    > Targeted job reductions in head offices and certain plants, with a commitment to avoiding any outright dismissals.

    These projects currently concern around a thousand jobs in France.
    The Joint Information, Dialogue and Negotiation Group will meet regularly to work as far upstream as possible on deploying these projects and to examine the appropriate jobs policy in response to these changes.

    About Schneider Electric
    Schneider Electric
    Give the best of the New Electric World
    To everyone, everywhere, at any time

    Schneider Electric, the world's Power & Control specialist with leading mondial brands such as Merlin Gerin, Square D and Telemecanique, offers a comprehensive range of products and services for the following markets: residential, buildings, industry and energy and infrastructure.
    Schneider Electric's 74 800 employees generated sales of EUR 9.1 billion in 2002 through 13,000 sales outlets in 130 countries.