Suez negotiating group meets again


Three issues were discussed:

- Profit Sharing. The union group suggested that Suez develop a system that allows all workers to participate in the profits made by the Group. It would be a system at the level of the group and in addition to profit sharing schemes existing in some of the individual companies in Suez. The results should be distributed taking into account the differences between countries so all in a country will benefit independent of the company in which they work. A base amount of ½ billion euros was discussed which would be adapted in function of the development of the group, for example linked to developments in the company's EBIT. National implementation of the system would be negotiated with the relevant trade unions. The system would apply in Europe. Management will reflect on this.

- Remuneration: The union group suggested that Suez confirm its positive attitude towards trade unions, social dialogue and negotiations. Suez should commit to compensate for inflation and for workers' to fairly participate in productivity increases. Wage negotiations are a prerogative of the national (and local) trade unions and employers and in accordance with the national praxis, and remain at that level. Management will reflect on this. General principles are already part of the Social Charter of Suez.

- Employment policy: Management proposed an amended version of its ideas on Forwarded looking employment policy (Gestion Previsionnelle de l' employ et des competences (GPEC). The intention is to develop an active employment policy linked to the development of the activities (and resulting needs) of the company. A working group of the EWC will be established to discuss this further with management.

The meeting was also informed of the verdict of the labour court in the case of the works council of Gas de France vs Gas de France. The judge said that the necessary information was given, but the judge also held that not sufficient dialogue had taken place. It therefore stated that a meeting foreseen for 10 November will be an information meeting and it set the date for a consultation meeting 21 November. According to management this will have an effect on the meeting of the Conseil d' Administration which will now take place after the 21st. It will not affect the General Shareholders meetings foreseen for the end of December, according to Suez management.

The group includes the Bureau of the EWC of Suez, plus the French trade union delegates. The meeting took place 7 November 2006, Paris.

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