ECID Press Release - Management should assume and pay the consequences of their failure
ECID coordinating committee Press Release; 17 th October 2007.
The ECID coordinating committee is very worried about the news that have been published lately on the European press about Alcatel-Lucent.
The workers and the trade unions are specially worried about management stating that new measures are necessary to improve the financial results of the company.
Shortly after different agreements on the Alcatel-Lucent restructuring plans have been reached in most European countries, before these agreements are even fully implemented and after months of mobilizations at a national and international level, the financial lobbies talk about the need for further cost reductions, more restructuring and a new strategy for the group activities. What credibility can Alcatel-Lucent have if within a short timeframe it greatly modifies its programs and strategy?
The Alcatel-Lucent merger was supposed to make our market share grow, improve our competences and generate more profit. But in fact up to now it has resulted in a 25% share price loss from Day One, an important decrease in sales in the first half of 2007 of –8% compared to previous year, -19.8% gross income and -137 M€ profit margin.
Management should assume and pay the consequences of their failure and not the workforce once more. This last year the consequences for the employees have been job cuts, closing of factories and more precarious employment. The new “necessary measures” we expect are the reinforcement of R&D; teams in Europe, the maintenance of all activities, efforts for new business areas to use the free resources instead of further staff reductions and an adaptation of skills for the employees on the latest technologies through a training program.
The ECID coordinating committee has requested an extraordinary meeting on October 30th with top level management to be informed firsthand before any public announcement is made. The ECID will keep working to safeguard employment and the rights of all Alcatel-Lucent employees.
