[ OUR UNION AND GLOBALIZATION ][ OUR COMMITMENTS ]
[ FUNDAMENTAL HUMAN RIGHTS IN THE TECHNIP GROUP ][ WAGES IN TECHNIP FRANCE ]
[ BACK TO WELCOME PAGE ]

The discussion with D. VALOT during the Group's Committee meeting (1) held on Friday 6 July 2001, was essentially focussed on TECHNIP / COFLEXIP operation and on its consequences on employees.

We have indicated the immediate concerns of employees and the Chairman answered all our questions. He made clear commitments regarding our future. A summary of this meeting is attached below.

According to the Chairman, after COFLEXIP takeover by TECHNIP, no merger of TECHNIP and COFLEXIP will be necessary, and he does not intend to modify these two entities presently. He acknowledges that there will be redundant positions at top management level, in particular in the accountancy, IT fields, but he considers that the new group is not overstaffed. So, he made a commitment to: no redundancies, no downsizing after COFLEXIP takeover by TECHNIP.

According to D. VALOT, the two firms are complementary to one another and the deal will not lead to a contraction of the combined entities.

Regarding the place of work, there is no transfer of personnel is scheduled, such as a transfer to Rouen of TECHNIP FRANCE personnel working in the upstream product line for instance. However, COFLEXIP personnel working in the PARIS area should be grouped at LA DEFENSE.

Thus, within two years, TECHNIP's staff would grow from 6000 to 18000 employees all of whom will be maintained in the staff, as D. VALOT committed to.

The creation of three streams of business, offshore production, onshore/downstream, LCI, would only be operational and would not infer the creation of new corporate structures. This operation would not either lead to a specialization of TECHNIP's subsidiaries in some activity streams. On the contrary, reinforcement of management in these three streams of business would be necessary.

Upstream and gas should represent a large part of our business in the future, but this should not affect our operations in the Petrochemicals and Refining fields, which should remain TECHNIP's business lines.

Synergies should allow savings approximately amounting to 2 % of the costs of the two firms involved, TECHNIP and COFLEXIP. Savings should concern business, e-procurement, insurance, etc., and redundant offices in geographical areas, such as Houston, for instance, where five TECHNIP/COFLEXIP entities exist and should be relocated in a single building.

TECHNIP's Chairman estimates that TECHNIP will not be financially weakened, even if a few years will be necessary to return to a zero-debt situation. He considers that the debt position level generated by the deal is reasonable and much lower than that in current practice in other corporations in our line of business, which is 30 to 40 % of shareholders fund.

Neither TECHNIP's financial standing nor its growth would be impaired and he contemplates new acquisitions in the near future in Europe, in the Life Sciences segment, but at a much lower scale.

He acknowledges that, in the absence of partly public shareholders, the COFLEXIP takeover operation would not have been initiated by TECHNIP. He estimates that a shareholders' agreement between IFP, GDF and TOTALFINAELF would not be sufficient to protect the new TECHNIP Group. According to his statements, only an expensive TECHNIP would be dissuasive for would-be "predators".

Regarding TECHNIP FRANCE, he made a commitment to maintain the complete performance of some of the contracts on a turnkey basis at LA DEFENSE and LYON, and he acknowledges that it is the only way to maintain know-how in design disciplines.

Finally, for the whole new TECHNIP Group, with its staff of 18 000 employees working in offices, in manufacturing plants and offshore facilities located on all five continents, we have requested and obtained Chairman's commitment to comply with the criteria set out by the International Labour Organization, i.e. in particular: freedom of association and collective bargaining, as well as elimination of discrimination in respect of employment and occupation. The Chairman asked employees' elected representatives to make proposals concerning formalizing, control and monitoring of this commitment.

(1) Attendees: Chairman & CEO of the Group; Senior Executive Vice President, Business & Operations; Senior Vice President, Human Resources & Communication; elected representatives of employees: 6 persons (2 of whom representing UGICT CGT).