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France Telecom-Orange signs agreement in France on Strategic Workforce Planning (GPEC)

Paris, March 31, 2011
On 31st March 2011, France Telecom-Orange signed an agreement on Strategic Workforce Planning with the CFDT, the CFE-CGC and the CFTC trades unions, which together represent 40% of the votes cast during the last union ballots in France. This agreement, known as the "GPEC" (Gestion Prévisionnelle de l'Emploi et des Compétences) agreement and which applies to employees based in France, is part of the “conquests 2015” plan and the Group’s new social contract. Together these aim to implement a proactive, motivating and socially responsible employment policy that allows every employee to manage his or her own career.

Bruno Mettling, Executive Vice President, Group Human Resources, said: “I am very happy to have reached this agreement, which adds to the Group’s new social contract that already includes agreements on issues such as job mobility, work organisation and the work-life balance. It is through such decisions that we have progressively been able to rebuild the social fabric of the company in France. This agreement is particularly important because it will provide employees with much greater visibility over their career path within the Group. This will be achieved through communication on a local level in 85 catchment areas across France. In addition, the Group confirms its commitment to recruiting 10,000 people in permanent positions in France over the period 2010-2012. This will be accomplished within the framework of its policies on diversity, gender equality as well as through programmes based on mentoring or the sharing of expertise”.

The aim of the agreement is to enable all staff, regardless of age, gender or disability, to pursue their professional development by providing them with support to facilitate and safeguard their career development. In order to meet this objective, the agreement includes two proposals which seek to make employment and professional development priorities in the company's ongoing development. This will be achieved by:
sharing strategic policy decisions concerning employment and the evolution of professional development programmes with employees and their elected representatives;  
providing collective and individual support for each employee for the development of his or her career plan.

Communicating and discussing policy decisions and future trends concerning jobs and skills
Through this agreement, employee representatives will formalize the way in which information is shared with employees and employee representative bodies (IRP), both on a national and local level. This information is shared for the purposes of:
putting Group policy decisions into perspective by presenting the strategy;
presenting the changes made necessary by these strategic choices;
discussing with employee representative bodies (IRP) the collective and individual solutions to be put in place to accompany these changes.

The Group has undertaken to rethink the structure of the GPEC agreement so that the information provided is global, consistent and relevant:
Global: the agreement applies to all subsidiaries in France;
Consistent: the agreement guarantees the consistency of information by means of an “Employment and Skills Outlook” report. This is designed to provide visibility in both qualitative and quantitative terms. The report, which will be updated every year, will provide a three-year forecast for changes affecting employment and professions, and a 5-year projection on the impact of retirement;
Relevant: a detailed version of the overall GPEC plan will also be issued on a local level, providing employees with a clear overview of trends both at a Group level and within their own, local environment. By doing this, the Group is making a commitment to communicating, on an annual basis, the overall trends that are expected to effect jobs and skills for more than 85 catchment areas in France.

Supporting employees with the development of their career plan
The agreement aims to enable employees to make informed choices by providing additional visibility on the way in which jobs and skills will evolve both nationally and locally. Information will be available on the Intranet, in team meetings, in forums and in briefings.
In addition, each employee is given support in the development of his or her career plan by their manager during performance appraisals and by “Orange Avenir” advisors during career planning interviews.

The agreement also strengthens the Group's policy on professional development through training (which represented 6.5 % of the total payroll in 2009). On this issue, the management undertakes to:
ensure access to training for all staff according to individual needs;
provide at least one training course for all employees every three years;
develop more advanced professional training programmes and courses;
develop courses leading to formal qualifications and encourage the ‘formal recognition of acquired experience’ (VAE) scheme, especially collectively;
encourage access to the ‘right to individual training’ (DIF), a scheme which led to around 10,000 training courses in 2010.

The agreement clarifies the principles and rules for change, support, promotion and internal mobility in order to guarantee equal opportunities and equitable career development.
About Orange
France Telecom-Orange is one of the world’s leading telecommunications operators with 170,000 employees worldwide, including 102,000 employees in France, and sales of 22.6 billion euros in the first semester 2011. Present in 35 countries, the Group had a customer base of 217.3 million customers at 30 June 2011, including 143 million customers under the Orange brand, the Group's single brand for internet, television and mobile services in the majority of countries where the company operates. At 30 June 2011, the Group had 158.3 million mobile customers and 14 million broadband internet (ADSL, fibre) customers worldwide. Orange is one of the main European operators for mobile and broadband internet services and, under the brand Orange Business Services, is one of the world leaders in providing telecommunication services to multinational companies.

With its industrial project, "conquests 2015", Orange is simultaneously addressing its employees, customers and shareholders, as well as the society in which the company operates, through a concrete set of action plans. These commitments are expressed through a new vision of human resources for employees; through the deployment of a network infrastructure upon which the Group will build its future growth; through the Group's ambition to offer a superior customer experience thanks in particular to improved quality of service; and through the acceleration of international development
France Telecom (NYSE:FTE) is listed on Euronext Paris (compartment A) and on the New York Stock Exchange.
For more information (on the internet and on your mobile): www.orange.com, www.orange-business.com, www.orange-innovation.tv
Orange and any other Orange product or service names included in this material are trade marks of Orange Brand Services Limited, Orange France or France Telecom.




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