1. Alcatel-Lucent European Works Council Philippe Saint-Aubin / Arturo Garcia Hidalgo Malines / Mechelen September 26th, 2011

2. 2 1- ECID organisation

3. 3 Alcatel-Lucent in UE Headcount end 2010ECID 2011 delegates Austria4901 Belgium17552 Bulgaria25573 France91157 Germany35343 Ireland128 0 Italy21252 Netherlands4751 Poland9382 Portugal1921 Romania15622 Slovakia2001 Spain9162 Switzerland5961 UK 14002 2598330

4. 4 Alcatel-Lucent European Works Council (EWC) status Real name: European Committee for Information and Dialogue Created in 1996 at the time of Alcatel-Alsthom (then 130,000 staff in Europe) Aims at allowing an information and a transnational exchange of views at European level regarding Alcatel-Alsthom’s strategy, structure and organization, its economic and financial situation, its competitive position, and evolution of employment following namely activity transfers and changes of structure Do not interfere with national affairs or negotiations (A-Lu or unions) Legal status:  “Article 13” of European Directive 94/95/CE. Based on french law.  President is from Management (today EMEA president: Adolfo Hernandez)  Status under renegotiation under new Directive 2009/38/CE. Key question is “Consultation”. 2 court decisions in 2002 and 2007 have defined “Information” Dissolution of former Lucent EWC in 2007. Some members later joined ECID

5. 5 ECID working 30 members from countries with more than 150 Alcatel-Lucent staff. Substitute members (in most countries) when regular members cannot attend meetings Term is 2 years. Renewal based on headcount end of even year (2010, 12... ) 2 plenary meetings per year  1 day internal, big 1/2 day with Management. Spring, Autumn (next in October 2011)  Extraordinary meetings in exceptional circumstances  Working languages: Dutch, English, French, German, Italian, Spanish “Semi-official” thematic meetings (2010: factory meeting in Stuttgart; 2011: Eastern Europe meetings in Sofia, Bydgoszcz, Optics in Vimercate) if needed Official meetings are the tip of the iceberg. Most ECID work is made through: Questionnaires to members Work groups on topics of common interest

6. 6 ECID Coordination Committee 5 people designated among delegates. Next renewal: October 2011  Closer contact with Management; discuss ECID organisation issues  From largest subsidiaries in Europe Today  Belgium (Irene Bertrand)  France (Philippe Saint-Aubin, secretary)  Germany (Harald Kalmbach)  Italy (Adriana Geppert)  Spain (Arturo Garcia Hidalgo). Webmaster  2 meetings / year with Management. Winter, Summer + extraordinary meetings  Extraordinary meetings in exceptional circumstances (e.g. sale of EBG)  Secretary elected among Coordination Committee members for 2 years  Makes sure the “shop” runs properly  Working groups are chaired by a Coordination Committee member

7. 7 ECID and unions Most ECID members belong to a union, but ECID is not a union. Designation of delegates is made as per national rules.  May or may not be union members. No union: Slovakia, UK  1 union: Austria, Germany, Netherlands, Portugal, Romania, Switzerland  Several unions: 4 France (4); Bulgaria (3?); Belgium, Italy, Poland, Spain (2). Strong working relationship with EMF (European Metalworkers Federation)  Secretary attends EMF ICT working group and when possible EMF EWC meetings  EMF role still unofficial; to be made clearer in next ECID agreement (membership)  New in 2011: delegates from unions not affiliated to EMF (Bulgaria, Portugal) EMF has appointed an « expert » or coordinator to assist ECID: Charles Sasso (Fr.)  He looks after union related questions  ECID agreement  Inter-union relationship  Advises on union related issues  May be used to build bridges with Management in case of conflict

8. 8 ECID delegates rights and obligations Time for mandates  Official meetings: working time. Travel expenses paid by Company  Daily ECID duty: based in practice in Alcatel-Lucent national unit  Most important is invisible work: info, workgroups, questionnaires, report to staff Training  One training session per 2 years term. Next in September 2011 in Belgium  Right for English language training 60 k€ yearly budget. Can set finance meetings, translations... More rights for Coordination Committee: 4x2 days of country visits per 2 years term Grey area (subject to national practice): communication to workers ECID Website http://alw.web.alcatel-lucent.com/ecid/. Help welcome!http://alw.web.alcatel-lucent.com/ecid/ ECID can be assisted by French Works Council accounting expert (Syndex) Confidentiality obligation on info given as such by Management (sensitive issues)

9. 9 2- ECID history

10. 10 Alcatel-Lucent EWC (ECID) | Elewijt - September 2011 Alcatel-Lucent EWC (ECID) History –milestones and happenings (I) EWC agreement  1996 Alcatel-Alsthom EWC agreement, based on Article 13 (UE directive 94/95/EC). Anticipation agreement.  1996 Signature by trade union representatives (France, Germany, Italy, Belgium, Spain, UK, Austria, Sweden).  1996 Directive 94/95/EC transposed.  2005 Lucent EWC agreement, based on Article 6 (UE directives 94/45/EC and 97/74/EC).  2006 Discussions about improving the agreement start (process not yet finished in 2011!!).  2006 Alcatel-Lucent merger. Lucent absorbed by Alcatel, its EWC ceases to exist and Alcatel’s prevails.  2011 (expected) Directive 2009/38/EC transposed. “Against” the company  1996 First European demonstration to support negotiations for the EWC agreement.  2002, 2007 Lawsuits against Alcatel and Alcatel-Lucent on information / consultation.  2001, 2002, 2007, 2008, 2009European Action days (joint demonstrations and other actions against lay-offs).  1999, 2009 Demonstrations in front of shareholders’ meeting in Paris. In collaboration with the company  2004 Participation in the Social charter of Alcatel.  2006 Telework framework agreement in Alcatel.  2011 Participation in commissions (workforce management)

11. 11 Alcatel-Lucent EWC (ECID) | Elewijt - September 2011 Alcatel-Lucent EWC (ECID) History –milestones and happenings (II) Europe and the ICT sector  2005 Alcatel Space and Alenia Space merger (working with EMF, EU DG competition and EU DG social affairs)  2007 Meeting at European parliament with MEPs (Strasbourg).  2010 Petition to European parliament on the competitiveness of Telecom in Europe. Internal affairs  2005 Training trip to China.  2006 First ECID website launched.  2006 Meeting with CWA (USA trade union)  2009 First Elewijt seminar  2011 Start of cross invitations between members to attend each other’s national meetings. Others  1996-2011 Visits to support the future of the factories (Illkirsch, Vimercate, Concorezzo, Rieti, Geel, Bydgoszcz…).  2009-2011 Visits to support employee representatives in Eastern Europe (Slovakia, Romania, Bulgaria, Poland).

12. 12 Alcatel-Lucent EWC (ECID) | Elewijt - September 2011 Alcatel-Lucent EWC (ECID) History - people Chairmen (company)  Serge Tchuruk (CEO and president of Alcatel) 1996-2006  Ettiene Fouques (several senior positions in ALU) 2007-2008  Adolfo Hernández (ALU EMEA president) 2008-2011  Stephen Carter (ALU EMEA president) 2011- Secretaries (employee representation)  Pierre Chanson (France, CDFT) 1996-2004  Alain Hurstel (France, CFDT) 2004-2008  Odile Denis (France, CFDT) 2008-2009  Philippe Saint-Aubin (France, CFDT) 2009- EMF Experts  Renato Losio (Italy, FIOM-CGIL) 1999-2000  Maurizio Canepari (Italy, FIOM-CGIL) 2001-2002  Jacques Debesse (France, CFDT) 2003-2006  Charles Sasso (France, CFDT) 2006-

13. 13 Alcatel-Lucent EWC (ECID) | Elewijt - September 2011 Alcatel-Lucent EWC (ECID) History - seats & workforce evolution ECID composition evolutionWorkforce evolution 19962011delta19962011% France87-158576858414,65 % Germany43-124275350414,43 % Italy32-112612211416,76 % Belgium229896172217,40 % Spain22802592011,45 % Switzerland21-1488557111,68 % UK12+137211362 (*)36,60 % Austria11212147522,39 % Norway10-12484<150 (**)< 6 % Sweden10-1993 <150 (**)< 15 % Portugal1154419235,29 % Netherlands1156346181,88 % Greece10-13757219,20 % Denmark10-1312 <150 (**)< 48 % Ireland10-1184<150(*)< 81 % Bulgaria03+3-2390 Poland02+2-913 Slovakia01+1-200 Romania02+2-1491 Total30300129886 (***)25383 (****)19,54 % (*) For UK and Ireland we have a total figure of 1512, with Ireland being less than 150 (**) For Sweden, Denmark and Norway we have a figure of 180 under “Nordics” (***) UE15+Norway, Switzerland (only Alcatel, Lucent figures not available) (****) UE27+Norway, Switzerland

14. 14 3- ECID activity

15. 15 ECID action in tough times (2009-2011) 2009 plan: 750M€ cost savings  Outsourcing 1800 staff to HP, Wipro...  2500 job suppressions (+5000 subcontractors) Info exchange, management meetings Get global understanding and details of the plan European lobbying within the Company Pushes for greater role of Europe Question the rationale of the plan Campaign "low cost is expensive" Mobilization of European Union authorities Petition to the European Parliament Coordination of actions: European event Support to new EU countries Support Romanian union creation Industrial prospective Meeting of group's European plants and Optics

16. 16 ECID action in quieter times (2009-2011) Continuing action for employment  Protect staff information rights (E.g. 2011: layoffs in Optics Product Line)  Liaise with national unions when jobs are under threat.  « Low cost is expensive» : agreement with management on joint case studies of off- shoring / outsourcing. Push for in-sourcing.  2011: E10/S12 co-sourcing agreement with Wipro; IS/IT with HP  Work group with Management on worldwide management of workforce and skills (plus internal tool for job market). Work in progress. Target a “charter” for EMEA countries Continue inter-unions cooperation: exchange of information, joint actions  In 2010: salaries and benefits, gender gap  In 2011: pension plans, burnout (?), reaction to salary policy (0% increase), new enquiry salary + benefits. Integrate newcomers: 1400 from Romania in 2009, 2700 from Bulgaria in 2011.  Workshop in Bulgaria (February 2011). Meeting in Poland (May 18th, 2011).  Training session with ETUI (September 2011) Improve inter unions’ coordination, exchange of info between delegates European lobbying for telecom industry with EMF and other EWCs Still to improve: interest and involvement from general staff

17. 17 ECID 2011-2013 Program To be launched during this training session and then reviewed at plenary meetings. Skills management, leader: Adriana Geppert. Our goal is that cost reduction does not translate into staff reduction and that everything is made to match company needs and employees’ skills ECID functioning, leader: Arturo Garcia. How to be collectively more efficient, to better communicate and serve the employees? Which tools to use? Burn-out, leader Irene Bertrand. How to fight overwork, stress, and psychosocial risks by addressing not only their effects, but their causes in the company? Employment, leader: Harald Kalmbach. How to develop employment in A-Lu Europe and resist the out-sourcing and offshoring plans? Lobbying for the European industry: leader: Philippe Saint-Aubin. Make the EU authorities aware of the risks faced by our industry in the Union. Push for more political involvement. Corporate Social Responsibility: leader: Isabelle Guillemot. ECID participation in new topics like corporate governance, human rights, labour practices, the environment, fair operating practices, consumer issues, and community involvement and development. Others: staff status, salaries, pensions, keep contact with former A-Lu entities,... ECID agreement update: negotiation with Management will take place when EWC directive is adapted in the French law. Target date for completion: spring 2012.

18. Thank you!