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French Unions, EDF Agree to Positive 2010 Wage Terms

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22 February, 2010

Four French unions last week, 18 February, approved average wage increases for 60,000 EDF (Electricité de France) workers of 4.4% for 2010. CFDT, CGT, CFTC, and CFE-CGC won workers a progressive and far-sighted wage accord that has a base salary increase, plus increases based on seniority, training, incentives, and promotions.

The 80% state-owned EDF will see half of its workforce retire over the next ten years, with 45% of the company’s nuclear workers alone set to retire by 2015. An industry-wide increase of 1.2% that was negotiated last November and took effect on 1 January is also factored into the 4.4% average boost in salaries. The agreement also includes individual incentives of up to 1.8%.

Over two-thirds of the 60,000 workers, those employed in distribution and high-voltage electric utility positions, will realize average wage packages increases of 4.2%. The agreement also prioritises training and career advancement opportunities, and likely will prevent the labour unrest within EDF that was characterized by several industrial actions in 2009.

The CFDT termed the agreement satisfactory, while the CGT, which for the first time in many years joined the other unions in approving the results of this bargain, said the new agreement makes up some of the lost purchasing power of the recent past.

The company characterized the wage agreement as “not exorbitant” and said it reflects the will of management to heighten social dialogue with the unions, particularly on job formation and skill upgrades. The positive global financial results posted by EDF in 2009 also contributed to the amiable wage negotiations, with the company stating that the various wage packages granted French workers should contribute to optimal operational performance in 2010.

EDF is the world’s largest operator of nuclear power plants, with some 17 plants and 58 reactors in France alone.