Vivendi is committed to ensuring that employee contributions are rewarded equitably. Consequently, the Group has implemented a profit-sharing policy that exceeds legal requirements and that strongly encourages employee share-ownership. It keeps its social partners duly informed of the Group’s strategy, financial position and social policies. Similarly, in addition to these internal provisions, Vivendi has applied a social responsibility policy to assist regions deeply affected by unemployment and industrial restructuring in their industrial revitalization and job growth. Finally, the group has taken a number of actions to promote academic success and knowledge of the business world for youth in disadvantaged areas and disabled students.
Employee Share Ownership and Employee Savings Plans
The year 2010 saw a continuation of measures launched in 2008 through the creation of the Opus program to promote employee share ownership within the Vivendi Group (the simultaneous launch in France and abroad of “Opus 10,” a leveraged share capital increase with an investment and minimum return guarantee) and the customary annual rights issue for employees of the group’s French companies.
Development of Employee Savings Plans in France
In 2010, employee share ownership and savings increased, through contributions made by the Group’s French companies under various participatory compensation plans (statutory profit sharing, optional profit sharing and employer’s contribution): the allocation of a major and growing share of these employee savings to employee shareholdings was maintained, and, at the same time, employees continued to diversify their savings within the various investment options offered to them under the Vivendi Group Savings Plan (“PEG”) and investment options under their relevant company agreements.
In 2010, net amounts received by employees of the Group’s French companies under the optional profit sharing plans (intéressement), statutory profit sharing plans (participation) and pursuant to contributions made by employers to the Group’s savings plan (Plan d’épargne groupe or PEG) were €96.8 million (up 5.1% over 2009). The aggregate amount of new employee savings amounted to €70.8 million, €52.5 million of which were invested in the various PEG funds, with the remaining €18.3 million being allocated by employees to retirement savings plans (e.g., Perco at SFR) and to various funds or plans maintained by their relevant companies.
Share Capital Increase for the Benefit of Employees
On February 24, 2010, the Management Board approved the annual share capital increase reserved for the Group’s employees through the PEG, as authorized by the Shareholders’ Meeting of April 30, 2009. The transaction was successfully completed on July 29, 2010. For the third time in a row, the capital increase involved the simultaneous launch of a customary employee offering (in France) and a French and international leveraged plan which included an investment and minimum return guarantee, known as “Opus 10”.
In 2010, in addition to the same principal guarantee offered in 2009, a minimum guaranteed return was offered, compounded at the rate of 2.5% per year. “Opus 10” was offered to employees in all major countries where the Group operates, i.e., France, the United States, the United Kingdom, Morocco, Germany and, for the first time, Brazil and the Netherlands.
Despite a macroeconomic environment that remains difficult and rewards prudent behavior and attention to stock price, the “Opus 10” project was hailed as a success, with aggregate subscriptions exceeding those in the previous two years. Overall, two portions of the 2010 capital increase (customary and leveraged) resulted in a capital increase totaling €98.5 million, including €76.8 million for “Opus 10” (i.e., 42.6% over the 2009 level) and €21.7 million for the customary employee offering (i.e., 25.5% over the 2009 level). As a result of this transaction, 7,148,169 new shares were issued, including 5,571,511 shares under “Opus 10” and 1,576,658 shares under the customary employee offering. This volume of newly-issued shares (a 47% increase compared to the 2009 capital increase reserved for employees) represents 0.58% of Vivendi’s share capital. Upon completion of the transaction, the portion of Vivendi’s share capital held by its employees was 2.11%.
8,773 employees subscribed to the capital increase, including 7,023 through “Opus 10” and 5,929 in the customary employee offering in France. The overall participation rate of eligible employees amounted to an aggregate of 23.7% under the two plans, including 19% for “Opus 10” alone (37.4% of which was attributable to employees in France and 4.3% to employees outside France). In France, 48.1% of the employees participated in at least one of the two employee offering plans.
Considering the confirmed success of the “Opus” program, on December 14, 2010, the Management Board resolved to renew the program in 2011 as part of the employee share capital offering, in parallel with the customary employee offering.
Dialog between Management and Labor
In 2010, both sides of the Group-wide Labor-Management Committee, the European Labor-Management Group and Vivendi headquarters’ Labor-Management Committee were regularly informed of the Group’s strategy, financial position, social policy and main achievements for the fiscal year. The Group-wide Labor-Management Committee and the European Labor-Management Dialog Group were renewed, with certain newly-elected representatives from various corporate entities, for the next four years. During the annual two-day training session, strategic challenges related to the digital revolution, knowledge of Vivendi’s businesses and financial techniques were discussed.
Training is both a key component of the recruitment of young professionals and an asset to the company, which is thus diversifying its sources of recruitment. Vivendi is continuing the commitments it made in 2009 to increase the number of employees on alternating work-study contracts within the Group. At year-end 2010, the Group employed 669 trainees under alternating work-study contracts (compared to 526 in 2009 on a like-for-like basis, an increase of 27%).
The Vivendi Group’s training policy encourages employees to acquire and strengthen the skills required to fulfill their objectives and to pursue their career development. Employee training requests and needs are identified and discussed by management and employee representatives, as well as during each employee’s annual evaluation. The percentage of payroll dedicated to training remains much higher than that required under French law.
For several years, Vivendi has been developing a training partnership with INSEAD (the European Business Administration Institute) to improve its future leaders’ skills. This made-to-measure training program has the following goals: to develop the skills needed to better understand the national and international business environment, to be able to anticipate major future business trends, to learn best practices, and to challenge and redefine accepted experiences and beliefs.
The companies of the Vivendi Group continue to focus on occupational health and safety. In 2010, 6,037 Group employees received safety training. The frequency of industrial accidents amounted to 2.58 in 2010. Since the rate is higher in on-site jobs, specific prevention programs were implemented in that field, particularly at SFR, Maroc Telecom Group and Canal+ Group.
In relation to preventative measures, job safety and working conditions, studies have been conducted by various entities, which have resulted in the implementation of training programs in these areas. Vivendi is pursuing the implementation of preventive measures to address problems associated with stress management and psychological-social risks. These measures are tailored to each Group entity and cover areas such as the training of direct supervisors, implementation of a hotline available to employees and information provided to the workplace representative agencies (IRPs) by a specialist physician.
The Vivendi Group encourages internal mobility among its various business units through three methods: an annual interview focusing on employee goals, a “people review” performed by management and a dedicated website. This latter tool, accessible via the Intranet, was enhanced by the incorporation of new technologies such as e-learning, to assist employees in preparing their mobility-related activities.
In addition, a succession plan covering top management positions and high-potential employees has been adopted within each group business unit. As soon as emerging leaders are identified, they are guided into a development plan that encourages greater mobility between the Group’s various businesses.
Contribution to Employment Development
In 2004, Vivendi provided undertakings to the French public authorities to contribute to the creation of jobs in the regions most affected by unemployment and industrial restructuring in two different ways:
- creating, via subcontractors, two call centers linked to the Group’s activity; one in Belfort at year-end 2005, the other in Douai at year-end 2006, with the aim of attaining 300 full-time equivalent (FTE) jobs at each center. As of year-end 2010, the work force at these centers amounted to an aggregate of 448 and 404 FTE jobs, respectively; and
- assistance in the revitalization of fragile or damaged employment areas selected by the Ministry of Economy and the Ministry of Industry: assistance in advising and financing job-creation projects, in the amount of €5 million per year over five years.
Interim results of the missions under the 2005/2009 five-year agreement: 4,084 jobs created
The interim results of the eleven program missions under the five-year agreement (2005-2009) were quite satisfactory: as of December 31, 2010, jobs certified by commitment committees, which were set up with public authorities in each relevant area, totaled 5,243, and actual job creations totaled 4,084, representing over 78% of certified jobs.
The first employment area program was set up in March 2005 and the latest program was launched in March 2008. Each program has a minimum operating lifetime of three years. This explains why a final analysis of the five-year agreement (2005-2009) at year-end 2010 is not yet complete. As of December 31, 2010, Vivendi had exceeded its overall commitment to create 2,800 jobs by 87% (in terms of certified jobs) and by 46% (in terms of jobs already created) throughout all the employment areas. These results were obtained even though the active phase of the project (identification and validation of applications) was completed in only five territories and will continue in one of the eleven areas (Haut-Jura) in 2011.
In 2010, several projects under the program underwent an extended operating phase which extended beyond the three years at the request of the public authorities in Abbeville and Montdidier (Somme), Thann-Cernay (Haut-Rhin), Pas-de-Calais (extension focused on the Calais area), and Tonnerrois (Yonne). In addition, upon completion of the operating phase in these areas, the economic development companies involved remained in these territories in order to follow the progress of the programs and ensure that scheduled jobs were in fact created.
In the first areas where the program was implemented, effective job creation exceeded the target by 157% in Arles, 73% in Oise, 71% in Dreux and 34% in Sarrebourg.
Job-creation goals were also surpassed in several newer areas: by 96% in Somme, 50% in Thann-Cernay, 42% in Pas-de-Calais and 12% in Chalon-sur-Saône. The Tonnerrois project also achieved its actual job-creation goals. In the Autun-Château-Chinon area, scheduled job creations have exceeded the target by 25%, but actual jobs created have not yet attained the applicable target; these jobs are expected to materialize in 2011.
80% of the companies assisted in these areas were either manufacturers, agribusinesses, public works and civil engineering or industrial services providers. 15% were in trade or craft work. The remaining percentage was made up of companies in tourism and homecare services. 70% of the aided projects involved the development of existing companies, 26% the creation of new companies and 4% acquisitions. Almost all aided companies were either small, medium-sized or very small businesses. More than 85% of all approved projects are carried out by companies from these areas. Dreux is the only exception, since 60% of projects come from companies located outside the area.
At year-end 2010, Vivendi had granted €28.74 million to job creation in the eleven employment areas since 2005, under the terms of the first five-year agreements. Equity loans and subsidies to companies account for approximately 70% of the total budget, with the remaining 30% assigned to the fees of industrial revitalization companies.
New commitments (2010 / 2012)
In the first quarter of 2009, Vivendi agreed on new targets set by the French Government for its contribution to the development of jobs over a three-year period (2010 to 2012). In addition to maintaining its previous commitments in relation to the call centers of Belfort and Douai, Vivendi has agreed to create 1,800 new jobs in three years in addition to jobs created under its previous commitments, and to allocate five to six million euros per year to meet this goal.
The first areas under this new initiative were assigned to Vivendi by the Ministry of Economy and the Ministry of Industry in late 2009. They included Châtellerault (Vienne), Montluçon (Allier) and a new mission in Oise with priority in Beauvaisis.
The mission at Châtellerault is unique in that the Government has asked Vivendi to combine its revitalization initiatives with five revitalization agreements entered into with companies active in the area that have been restricted from reducing their workforce through PSE. 452 jobs have been certified at Châtellerault. As of December 31, 2010, almost 170 had been created. The new program mission at Oise has been successfully launched: 531 jobs are already scheduled. In the Monluçon area, 65 jobs have been scheduled. In total, a program to create 1,048 jobs was certified in 2010 in these three employment areas.
As of the summer of 2010, three new areas were designated by the public authorities: Ploërmel (Morbihan), Vendôme (Loir-et-Cher) and a new mission at Calais. These three missions were successfully launched in the fourth quarter of 2010.
In 2010, Vivendi allocated an aggregate of €5.02 million to finance these new commitments.
Equality of Opportunity in Educational Programs
Passeport Avenir
By creating the “Telecom Engineer Passport” (Passeport Ingénieur Télécoms) in 2005, SFR and the French public authorities intend to facilitate access to engineering schools for young people in deprived areas and offer them the prospect of high level careers in communication technology businesses. SFR’s objective is to create genuine and exemplary situations of academic and professional success for young people, within companies located in disadvantaged neighborhoods, by using the appeal of the telecommunications business. This program is the first to include all key players: teachers, companies, higher education institutions, local policy-makers and young people themselves.
A “Circle” that has gradually grown
In 2006, the program expanded to the “Telecom passport circle” (Cercle passeport télécoms) association, to include in SFR’s initiative six other companies in the sector (Alcatel Lucent, Ericsson France, Motorola France, Nokia Siemens Network and Siemens France), in partnership with the National Education Ministry and the Ministry of Employment, Social Cohesion and Housing.
In 2007, new partners joined the Cercle: Crédit Mutuel, the Formule 1 hotels, Orange and the Alcatel-Lucent Foundation. The first one offers all students at a partner school a system of loans without parental co-signing responsibility. The second offers students two free nights at a Formule 1 hotel during examination periods, if they are required to travel far from home. Orange strengthens and expands the Cercle’s presence in the field and the commitment of the telecommunications sector to equal opportunity and social promotion. The US-based Alcatel-Lucent Foundation, with a network of 70 English-speaking mentors, offers young Cercle beneficiaries phone interviews and conversation. In 2010, 14 companies, 12 of them in the new information and communications technologies sector, joined the program, which was renamed “Passport to the Future” (Passeport Avenir).
Key figures 2010 / 2011:
- 57 technology prep classes (ATS, TSI, ECT) and professional classes at 41 major engineering and management schools partner with Passeport Avenir. 2,620 students benefit from group mentoring at these establishments;
- 688 volunteer mentors (from 14 partner companies – 149 mentors from SFR) provide individual assistance to 711 students, 458 of them in preparatory classes and 253 in higher education;
- throughout the previous two years, 92% of students who worked with personal mentors in preparatory classes passed their entry examinations to major engineering or management institutions; and
- 74% of them are beneficiaries of government scholarships.
A Future Together
Vivendi is also a partner with SFR in the “A Future Together” (Un avenir ensemble) program, created and managed by the Office of the Grand Chancellor of the Legion of Honor. This involves sponsoring a deserving student of modest means and monitoring him/her during his/her academic career.
Mobi3
Mobi3 is a program which has existed since 2008. It is offered to participants, following an entrance examination, by five companies involved in the life-cycle of cell phones: Dassault Systems, DLA Piper, IBM, Nokia and SFR, in partnership with IMS-Entreprendre pour la Cité. Mobi3 forms part of the “Engage” program, supported by the Ministry of Education, with the aim of developing a social commitment among employees across Europe. It challenges teams of middle school students to develop the cell phone of the future as part of their DP3 (3-hour professional discovery) experience. Consequently, the students study the life-cycle of a cell phone from 3D design to sale and cover marketing, legal aspects and logistics. In 2010-2011, six high-schools in Ile de France participated in the third edition of the program.
Télémaque
The Télémaque Institute was formed in July 2005, in partnership with the National Ministry of Education and 15 companies (Adecco, Axa, BPCE, Cisco, Darty, EDF, La Poste, PPR, Rexel, Schneider Electric, SFR, Technip, Total, UBS and Véolia).
Its task is to support smart and motivated youth (high-school students attending priority education establishments or participating in professional training) from disadvantaged backgrounds to give them every chance to succeed, according to their merit. The goal is for them to complete their secondary education and to graduate with a baccalaureate diploma with good or very good grades.
The effort is based on individual academic and personal monitoring, from middle-school to receipt of a baccalaureate diploma. This is done through a dual mentoring program, both academic and professional, and financial support to allow them to build and successfully carry out their own projects. In 2011, the Télémaque Institute supported 200 youths (ten of whom were partnered with SFR mentors) throughout Ile de France, Rhône Alpes and Nord.
ARPEJEH
Based on the finding that most students with disabilities stop their studies at the end of middle-school, SFR, in 2008, set up the ARPEJEH association (Assisting Young and Disabled Students to Complete their Studies), with the participation of businesses and government entities from all sectors.
The aim is to help students with disabilities avoid self-criticism by showing them that they can pursue a worthy professional career. To do so, the association organizes “job discovery” workshops in middle-schools. This is an opportunity for disabled young persons to realize that a place exists for them in the business world and that it is therefore essential that they continue their studies. A framework agreement that has just been signed with the French Ministry of National Education relating to the three academies of Ile-de-France evidences the importance of these measures. Currently, over 100 company internships have been organized, as have several “business discovery” workshops and other company visits and explorations. Today, the ARPEJEH includes 40 companies, including L’Oréal, LVMH, Air France, and RTE (Transport and Electricity Network). The association is chaired by Vivendi Group Human Resources Director, Stéphane Roussel.
In the future, ARPEJEH will seek to remain the link between students with disabilities and the world of work. There will be further internships and discovery workshops. Mentoring activities are also in the process of being launched.
